International business plays a critical role in the success and longevity of almost all business activity. The growth and expansion of international business has been dramatic in recent years, overtaking that of domestic business. While companies continue to expand sales, acquire resources, diversify sources of sales and supplies and minimize competitive risk, pursing international business has become an essential goal as well. Because international business involves a large and increasing portion of the world s total business, it is important to understand the factors responsible for this expansion.
One factor that can be held responsible for the expansion of international business is the rapid increase in and growth of today s technology. In recent years, the rate of technological advances has accelerated at a remarkable pace.
Imagine life now without such things as email and fax machines. It is amazing how much everyday business activity relies on just those two things. Also, the advances made in transportation greatly impact the expansion of international business activity. Business travelers are now able to fly almost instantly to other countries that proves to help the global relations. (Walter,1994) Looking at the improved cost of communication, managers are able to better control foreign operations and perform business interactions.
Because both transportation and communication play a vital part in the rise of international business, the advances that have been made in these areas greatly impact the international arena. (Trevor,1994)
Another factor responsible for the expansion of international business is the liberalization of governmental policies on cross-border movements of trade and resources. In the past, heavy restrictions have been made along countries borders in regards to the movement of goods and services and its resources. With every country imposing such restrictions, engaging in international business has been expensive to initiate.
Today, governments require fewer restrictions and.......
