International Business Environment Essay Example | Topics and Well Written Essays - 2000 words

International Business Environment - Essay Example Globalization has its benefits and challenges. However, it is almost inevitable and the global economy is expected to continue influencing operations of businesses. This paper â€Å"International Business Environment† addresses the question on whether globalization is good or not. The discussion will involve a brief explanation on how different schools of thoughts perceive globalization. Additionally the drivers of globalization, its implications on international business, the benefits, and challenges of globalization to the international society in general will be discussed.Globalization as Perceived by Various Schools of ThoughtInternational business entails any business activity conducted across national borders. The activities may involve sell of goods or services but must be done between two or more countries. Most multinational companies may have their management located in one country. However, they are international since they carry out business activities across more than one nation. International business has become a common phenomenon that influences decision in the political social as well as economic arena. International business operations are characterized by opportunities as well as challenges (Bray, 2003; Stefanovic, 2008).The term globalization means different things to different people. Some view globalization as increased worldwide interconnectedness in different aspects such as cultural as well as social ones. Hyperglobalists describe globalization as a phenomenon that exposes people.... International business operations are characterized by opportunities as well as challenges (Bray, 2003; Stefanovic, 2008). The term globalization means different things to different people. Some view globalization as increased worldwide interconnectedness in different aspects such as cultural as well as social ones. Hyperglobalists describe globalization as a phenomenon that exposes people to international market resulting in denationalization of economies. Skeptics consider globalization to be the economic interdependence resulting from economic integration. However, skeptics oppose hyperglobalist argument that globalization leads to denationalization. Conversely, skeptics claim that globalization leads to increased influence of national governments on the global economy (Bray, 2003). Transformationalists agree with the hyperglobalists’ argument that globalization reshapes social, political, and economic societies. However, transformationalist fail to agree with hyperglobalis ts’ argument that globalization leads to assimilation of the global societies into a single society. They argue that existence of a single business system does not mean that the global economic society is unionized (Bray, 2003). Drivers of Globalization Although the process of globalization has been going on for a long period, it has intensified in the recent past. There are several factors also referred to as drivers that are responsible for the increased pace of globalization. The main driver of globalization is technology. The economic world has made a great leap in technological advancement. Communication plays a major role in the business environment (Devemdra, 2009). This is because most business