Internationalisation refers to the process in which a company expands into foreign markets with the intention of capturing a bigger market share. Internationalisation may require firms to adapt their offerings to meet the needs of the local market. Internationalization Theories Various research about internationalization patterns. The Uppsala Internationalization Model During the 1970’s a number of […]
International Trade
Special Economic Zone (SEZ): Case Studies
A special economic zone (SEZ) is an area within a country that has business-friendly trade and business laws and is subjected to different economic regulations from the rest of the country. SEZs are set up to boost economic activity, promote exports, boost investments, develop infrastructure as well as create employment opportunities. Special Economic Zone (SEZ): […]
Comparative Advantage trade theory
Comparative Cost Advantage is a situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor. The Country concentrates on producing what they are good at and export the surplus. Import from other countries those goods that other countries are better able to produce than […]
Understanding Global Value Chains (GVCs)
Understand the importance and characteristics of global production chains. Understand the political, economic, ethical and social issues raised by the existence of global production chains. Understand the nature of employment and labor rights in identified emerging economies. What are Global Value Chains? (GVC) Global value chains are the fragmented cross-border stages, people and activities required […]
International Trade: Basics
International Trade: Basics Advantages of Free trade International trade involves the exchange of goods, and services between countries because there is a need for certain goods or services or perhaps the country is not efficient in producing certain goods/services. There are several reasons why trade is considered good, several economists feel trade is good for […]
Globalisation Concepts
Globalisation concepts: Resource guide to help understand globalization which refers to the increasing integration of economies around the world, particularly through trade and business. What is Globalisation Globalisation refers to growth in international flows of goods, services and especially capital that has taken place between countries. The aim of globalization is to benefit individual economies […]
Trade Protectionism: Impact of Tariffs and Trade Barriers on International Trade
There are benefits to free trade, but some parties could lose out as well; that is why governments may feel the need to interfere and regulate certain aspects of the trade. Let’s understand why governments control trade and identify methods governments use to control trade. Reasons for Trade Protectionism Economic Rationales Fight unemployment/ Protecting domestic employment. Most […]
What trade risks and financial risks does a multinational company face?
With increased globalization, many companies see the benefits of engaging in international trade; there’s opportunity to earn more revenue and to place your products and services in front of a wider audience. However, a business should also weigh in the risks associated with international trade. While one can mitigate most of these risks, certain risks […]
Foreign Direct Investment (FDI): Basics, Concepts, Case Studies
Foreign Direct Investment (FDI) explained. Understand concepts, key terms, and also find case studies related to FDI. These terms are commonly used while talking about FDI. MNCs/MNEs – nomenclature of foreign business FDI-inward/outward Domestic/ cross border business Subsidiaries / affiliates / parent company Home country / host country Rankings / indexes- Ease of doing business […]
US-China trade conflict
The US-China trade war has been escalating for some time now, especially after the Covid-19 pandemic. More companies are planning to diversify their supply chain after the Covid-19 pandemic crippled their business. Also, it’s getting too bureaucratic to be a foreigner in China and hence companies are looking to move to other countries in Asia […]
Role of WTO (World Trade Organization) in International Trade
What is WTO (World Trade Organization) and its importance in international trade. Introduction to WTO The World Trade Organization (WTO) is a global body that deals with the rules of trade between nations. The WTO strives to ensure trade flows as freely and predictably as possible. The WTO (World Trade Organization) came into force on […]
Most favoured nation (MFN) principle of WTO agreements
In international trade, most-favored-nation (MFN) treatment means a policy of non-discrimination towards all the WTO members. Although the name implies favoritism and exclusive trading privileges toward one particular nation, it actually means equal treatment of all member countries. So, for example, if a country reduces tariffs by 5% for one nation, the MFN clause says […]
