2. Challenges that are faced by companies going Global
● Globalization leads to increased competition. This
competition can be related to product and service cost
and price, target market, technological adaptation,
quick response, quick production by companies etc.
● Companies in the developed world are increasing their
commitment to emerging markets at a faster rate than
ever before.
● When a company produces with less cost and sells
cheaper, it is able to increase its market share.
● The need for businesses to expand their markets is
perhaps the most fundamental reason for the growth in
world trade.
3. Major Trends in International
Business
● Growing Emerging Markets
● Population and Demographic Shifts
● Speed of Innovation
● Increased Business Competition
● Emergence of Sustainable/Clean Technology
5. NAFTA
● NAFTA went into effect in 1994 to boost trade, eliminate barriers, and reduce tariffs
on imports and exports between Canada, the United States, and Mexico.
● It also aimed to get rid of trade barriers between the three parties, as well as most
taxes and tariffs on goods imported and exported by each.
● Leaders of the three nations renegotiated the deal in November 2018—now known as
the USMCA(the United States Mexico Canada agreement)—with new provisions.
Changes in the Business Trends
● The new agreement, as envisioned, will be valid for 16 years with a mandatory review
every six years.
● The United States will have new access to the Canadian dairy market, the new
automotive rules of origin will require higher levels of North American content in
vehicles, and the chemical industry will have additional originating options.
● This may well trigger a cycle of innovation, risk-taking, and market disruption. Finding
creative solutions within the labor market may be one way of increasing your
competitive edge.
● There has been progress on a number of issues under review in the talks including
telecommunications, pharmaceuticals, chemicals, digital trade, and anti-corruption
provisions.
6. GATT
● GATT came into effect on 1 January 1948 and was
refined over eight rounds of negotiations, leading to the
creation of the World Trade Organization (WTO), which
replaced GATT in 1995. GATT was focused on trade in
goods and aimed to liberalize trade by reducing tariffs
and removing quotas among member countries.
Changes in the Business Trends
● Forced Dynamism
● Cooperation among Countries
● Liberalization of Cross-border Movements
● Transfer of Technology
7. European Economic Community
● European Community (EC), previously (from 1957 until
Nov. 1, 1993) European Economic Community (EEC),
● The EEC was designed to create a common market among
its members through the elimination of most trade barriers
and the establishment of a common external trade policy.
The treaty also provided for a common agricultural policy,
which was established in 1962 to protect EEC farmers
from agricultural imports.
Changes in the Business Trends
● Globall Economic Integration
● Public Concerns
● Challenges and Benefits
● Responses
8. Growth of Asia
● Asia is the world’s largest and most populous continent,
and a leading driver of the global economy.
● Businesses in Asia are innovators and disruptors, with
massive internal markets, abundant resources, and
broad reach.
● Asian countries can be characterized as developing,
there is enormous variation among them.
Changes in the Business Trends
● The Emergence of China and India
● The Pace of change
● Legacies and Leap-frogs
● Funding Future Growth
9. Changes in Business
Trends During the
Pandemic
● Cashless and Contactless
commerce
● E-Commerce acceleration
● Shopping and Supporting
Local /Small Business
Owners
● Work from Home
