Introduction
Technology, increasing purchasing power and reduced trade barriers all together has given rise to, and accelerated Globalization. Globalization gives consumers access to foreign goods and allows businesses the opportunity to expand beyond country boundaries. However, business environment differ from one country to another. Although the same could be true of different regions/states within countries, the environmental differences and mobility limitations within country are far less pronounced than across national borders. Every country is unique and has its own economic, legal, political, cultural and social aspects. Hence, to conduct successfully abroad, companies must be aware of these aspects and if necessary, should alter/modify its activities to suit its host country.
Moreover, the risks associated with international business operations exceed those of national businesses because of the absence of a governing entity. The only entity that deals solely with trade among nations is the World Trade Organization (WTO). It tries to promote freer movement of goods, services and production factors among the world. Most businesses and nations look to the WTO to understand trade matters in an area. There are some regional organizations such as the European union (EU) and NAFTA that promote freer trade within a region. These regional bodies deal with specific problems facing regional integration whereas WTO monitors trade links amongst all countries.
International business perspectives and Strategies
There are many reasons for businesses to expand beyond a country. Historically, businesses have expanded to secure key-suppliers, to have access to new markets, and in order to lower costs of production. In modern times, companies enter the arena of international business for a wide variety of reasons, such as gaining economies of scale, capitalizing on the