The document discusses how globalization has affected domestic business practices. It outlines the four main international institutions that regulate global commerce: the World Trade Organization, International Monetary Fund, World Bank, and United Nations. The text argues that international business should be taught separately from domestic business for four key reasons: differences in cultures, more complex management problems, government intervention issues, and currency conversions. Globalization has increased competition for domestic companies from both domestic and international competitors. Firms must conduct market analysis and develop strategies to gain market share over others operating globally.

1. Globalization Affects on Domestic Business Practices.<br />Jack F. Gowen, Sr.<br />Keiser University Graduate School<br />International Business <br />MBA 551<br />Professor: Dr. Tiffany Jordan<br />10/31/2010<br />The basic principal of business is to supply the market demand, with a viable product, that is more enticing, than the competition. I am sure we wished that it were that simple. State and federal laws regulate domestic commerce. The critique addresses whether Domestic or International Business principals taught separately or jointly. Just as Domestic Business, practices must adhere to local regulations; International Business transactions conducted in accordance with Domestic and International laws. (Hill. 2009)<br />The fundamental paradigm shift from national, to world economies, has placed us square within the debate of the virtues of conducting international business transactions. The author of our text Charles Hill list two reasons in support of globalization, “decline in trade barriers, and the free flow of goods, services, and capital. Technological advances in communication, information processing, and transportation, makes international trade assessable.” (Hill, 2009, p. 11) Leading economist shared their opinions concerning international trade. “The international trade and investments are the twin engines driving the global economy.” (Hill, 2009, p. 24)<br />The four institutions that regulate global commerce are the “World Trade Organization” (WTO), “International Monetary Fund” (IMF), “World Bank” (WB), and the “United Nations” (UN). The WTO was set up to regulate trade agreements. The IMF was set up to regulate international monetary and economic development. The WB was set up to offer low interest loans to countries to ease their economic struggles, and promote growth. The UN developed into an international body, to promote peace through collective cooperation, and security, currently has 191 member nations. (Hill, 2009, pp. 9-10) <br />The four reasons given within our text why study international business in addition to domestic business: <br />1. Countries are different (i.e., culture, traditions, and religions)<br />2. The range of problems faced by management is different, and more complex<br />3. Management needs to find ways to work within limits imposed by government intervention, international trade, and investment system<br />4. International transactions involve converting money into different currencies<br />(Hill, 2009, p. 33) The reasons listed within our text support the need to teach international business as a separate course.<br />Conclusion<br />The affects of Globalization on domestic business practices, has altered the way we conduct business. The Global Market Place has enlarged competition. We compete with domestic companies for market share, and now we against Global competition. The Multinational Enterprises that compete within Global markets successfully have conducted market analysis, assessing consumer demand, developing strategies to increase market share over the competition. The laws and regulations that each country who belong to the World Trade Organization, and other import, export cartels. The difference in laws and labor standards between trading countries, outside of WTO membership pose a legal and ethical dilemma, because the labor laws, trade regulations, are in contrast to ethical behavior. The World Trade Organization, is part of the United Nations, there are standards set for membership. We are living within a Global society, and the consequences are the affects other countries have upon other countries’ economies. Once the Jeannie is out of the bottle, there is no going back. <br /> <br /> References<br />Hill, Charles, W. L. (2009, International Business: Competing in the Global <br />Marketplace: New York: McGraw-Hill/Irwin<br />