Global Business Environment Globalization

Question: Discuss about theGlobal Business Environmentfor Globalization. Answer: Drivers of Globalization in India Since past few decades, there has been a rapid shift in the manufacturing market from the developed countries to the developing ones like India, where the market offers ample opportunities to the larger multinational companies to expand their business on a global level (Hamilton Webster, 2015). The three primary drivers facilitating such global expansion are: Low Cost Manufacturing: Manufacturing facility in a minimum production cost has been the key driving force for the domain of business and this specific reason has pushed the companies to set up more and more production units in a country like India where labor cost is considerably lower than Australia or some other developed countries. Cost, in India involves several other things like raw materials, transport, energy and much else beside and the marginal expense that a company has to bear to avail this basic infrastructure setting up their factories here highly inflates the profit margin (Gaur, Kumar Singh, 2014). Besides, the economic currency rate of India aids further in reduction of the routine costs. Access to Talent: The developing countries are already suffering a crunch in the talent while on the other hand, developing countries like India provides the multinational companies with the chance to access the unemployed talent. According to a survey, India is likely to emerge as one of the largest provider of talent where one in every four graduates in the world would be a product of India (Gaur, Kumar Singh, 2014). Certainly, the companies would attempt to access this abundance of eligible population who are even superior to their counterparts in advanced economies in terms of education skills, ambition, productivity and mobility (Yeung Coe, 2015). Access to Market: The socio-economic scenario of India has marked it as an emerging market considering the market growth and industrial development in the country (Yeung Coe, 2015). Alongside manufacturing their products, the companies can also make the best possible use of the huge demand in the Indian market. The still not saturated market with amenities of economic liberalization has only increased foreign investments in the country and has resulted in a steep rise in the GDP of India (Hamilton Webster, 2015). Thus, this trend of globalization in business environment has a prominent existence in the market of India considering several driving forces including the ones discussed above. In recent years, there has been a remarkable development in the grounds of infrastructure and medical facilities in this country that has made the companies consider India as a potent choice of market. Topic 2: Role of International Trade in Canadas Economy Amid a bit of downtrend in Canadas internal economic growth or GDP the country is consistently inclining towards expanding its international business. Especially after the failure of Doha round Canada is pursuing more initiatives to maximize trade with Europe and Asia (Wilkinson, 2017). Talking about International trade, Canadas economy largely relies on export and import of goods and services, which boosts its economy and strengthens international relationship as well. The international trade of export and import accounts a larger share in Canadas GDP as well as the international business of export contributes to almost 16.7% employment n Canada (Wilkinson, 2017). Merchandise and Service Trade: U.S is apparently Canadas most important international trading partner in the sense that around 82% of Canadian exports are purchased by it. This overall reliance on U.S has been nothing new for Canada while Japan stands as the second most important trading partner of the country being absolutely no close to the U.S. Japan is accountable for only 4% of exports and 3% of imports in Canada alongside a minimal amount of trading with the European Union ("The Importance of International Trade to the Canadian Economy: An Overview", 2017). On the other hand, being extremely rich in natural resources like fish, lumber, copper, lead to exclusive ores of gold, diamond and uranium Canada is a salient exporter of natural resources in international market. Canada also purchases a series of services from abroad which includes transportation services, travel, tourism and commercial services. Facilities Provided by Canadian Government: Canada happens to be one of the members of North American Free Trade Agreement along with U.S and Mexico that has rendered the country a region of free trade. The nation has particularly managed to negotiate the free agreement with 40 countries, South Korea to be the latest one ("Opening New Markets: Trade Negotiations and Agreements", 2017), which definitely has benefited and increased the international trade of the country (Wilkinson, 2017). Other than this, Canada has signed several agreements crucial among them being Foreign Investment Promotion and Protection Agreement that protects and promotes foreign investments in the nation by preserving the rights and obligations legally. Therefore, international trade plays a major part in Canadas economy significantly contributing in its economic growth powered by the effective initiatives taken by the Canadian government. References for Topic 1: Gaur, A. S., Kumar, V., Singh, D. (2014). Institutions, resources, and internationalization of emerging economy firms.Journal of World Business,49(1), 12-20. Hamilton, L., Webster, P. (2015).The international business environment. Oxford University Press, USA. Yeung, H. W. C., Coe, N. M. (2015). Toward a dynamic theory of global production networks.Economic Geography,91(1), 29-58. References for Topic 2: https://www.thecanadianencyclopedia.ca/en/article/international-trade/ Opening New Markets: Trade Negotiations and Agreements. (2017). GAC. Retrieved 9 February 2017, from https://www.international.gc.ca/trade-agreements-accords-commerciaux/index.aspx?lang=eng The Importance of International Trade to the Canadian Economy: An Overview. (2017). Fraser Institute. Retrieved 9 February 2017, from https://www.fraserinstitute.org/studies/the-importance-of-international-trade-to-the-canadian-economy-an-overview