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International Business Strategy

International Business Strategy 2013-The Ever-Changing World of International Business

Article #1

By: Dr Samuel Aluri Obua

Executive Director
Institute of Corporate Directors Research Center
Pretoria South Africa
www.icdrctrainingcenter.com

Abstract
Global markets are still being hooked by differences in different economies and the level of
growth that impedes globalisation within those economies. Yes, market forces and global
integration is stepping ahead towards more global economies.

Global Perspectives 2012


Urbanization has become a norm, and with the advent of technology in this global world with
advanced economies stepping up efforts to streamline their economies. While developing
economies still catching up with their infrastructural development and cultural change to
attract investments. And with cross borders financial derivatives trade tariffs that still affects
global business and not in a sense making the world flat as discussed by (Thomas Friedman:
MIT Milestone Celebration Keynote Address retrieved from:
http://www.youtube.com/watch?v=EcE2ufqtzyk). But there is movement towards flattening
the globalisation.
Pankaj Ghemawat, Professor of Global Strategy, makes assertions about critical issues that
still affect globalisation as follows:
Flows of product do not contribute to Gross Domestic products;
Capital flows substantial, but sources of finance complicate it Movement across borders still
too small, not allowing labour movement according to (http://www.youtube.com/watch?
v=u95c_xKNVvw&list=PL7609FAD6B ECAD94B)

Why Global Business


The depression after Second World War brought Western world to remove barriers to
international trade and foreign direct investment. These resulted in GAAT (General
Agreement on Tariff and Trade) this in turn facilitated the globalisation of markets (Hill,
2005:9). The role of technological advancement and change has caused significant
advancement in the 20th and 21st century (Hill, 2005:12)

Hill (2005:12), asserts that jet travels have enabled rapid widespread movement of people and
goods across the borders; that has culminated into setting up new businesses across borders
according to
(Hill 2005:18) the changing demographics of the global economy tend towards globalisation
and have caused a dramatic change in the demographics of the global economy in the past
years moving forward.
Globalisation Challenges
Global competitive report eludes that; political will is still a challenge in that government
bureaucratic roles are an impediment of globalisation. Only when this bureaucracy is reduced
then, shall the world realised complete globalisation (Global Competitiveness Report 2013
2014 http://reports.weforum.org/the global- Competitiveness-report-2013-2014)
Private sectors are the main drivers for wealth distribution; that improves economic growth.
Private sectors dishonesty brought about accountability, transparency and a more global IFRS
(International Financial Reporting Standards) according to (Global Competitiveness Report
2013 2014 http://reports.weforum.org/the global- Competitiveness-report-2013-2014).
Adding to border movements, and immigration laws still pose insurmountable danger to
globalisation.
Movement towards Global Challenges Solutions
Business conglomerates, global companies spreading businesses across global borders should
ultimately understand challenges faced across borders and challenges in different economies.
For example according to (http://www.saylor.org/books page 14) the following are pertinent
global challenges: Cultures across borders, demographics, infrastructures, local perspectives,
technological advancement, and risk associated with global business and labour laws.
Kotler and Keller (2006:35) highlights why it is important for companies to study their
global business environment where the company should invest and why? Based on the
studies undertaken, such companies will then, come up with value proposition where the
company should trade and reasons thereto. As a result, appropriate threats are dealt with, and
business opportunities undertaken and weakness addressed strategically to deal with all crossborder challenges and be able to capture the ripening global markets.

References
Hill (2005) International business: Competing in the global marketplace (5th Ed) New York
NY: Irwin-McGraw-Hill Inc.
Hill, (2007) International business: Competing in the global marketplace (6th Ed) New York
NY: Irwin-McGraw-Hill Inc.
Kotler and Keller (2006) Marketing management (12th Ed). Pearson, Prentice hall Pp2-33
World Economic Forum, The Global Competitive Index 2013-2014: Sustaining Growth,
Building Resilience http://reports.weforum.org/theglobal- competitiveness-report-2013-2014
Pankaj Ghemawat (IESE-Spain Business School). Mini- Lecture on
Global Strategy. http://www.youtube.com/watch?v=u95c_xKNVvw&list=PL7609FAD6B
ECAD94B
Thomas Friedman: MIT Milestone Celebration Keynote Address retrieved from:
http://www.youtube.com/watch?v=EcE2ufqtzyk