Cinderelli M. Vera Cruz BSA 3-A International Business and Trade 1. Describe the role of globalization in international business and trade. The role of globalization in international business and trade is very vital. It facilitates interconnectedness within the countries all over the world in terms of goods and services, investment, people, technology, ideas, and information. Globalization is complex in terms of its effects which may either benefit or harm certain countries where what is advantageous to a certain country may not be advantageous to the other. Say for example the vast innovation of technology, manufacture, and production results to productivity and income but eliminate jobs for some countries. But because no country is self sufficient, globalization is inevitable and is promoted all over the world. 2. Discuss the drivers of globalization. In globalization, as the economies increase links to other economies, the globalization increase as well. These are resulted by the drivers or factors of globalization. One of the drivers is the trade in goods and services. We all know that economies are not self sufficient and that they can’t produce all they need that’s why they need to engage in trade to secure the goods and services they need like the oil from South Korea. Another is the financial flows where it is the movement of money from one country to another that is immediate. With the help of technology and speculators, ease movement money arises. Another is the investment and Transnational Corporation. While financial flows are short term, investment flows is long term movement of money. Foreign Direct Investment (FDI) also helps in setting up operations in new countries or increase in investments in the existing business. TNCs also link economies through its adaptation of local cultures which helps in its marketing. Another driver is technology, transportation and Communication which helps in the efficiency betweens economies through freight technology, internet, investment technology for easy moving of funds and transportation to boost movement of goods and services. The last driver is international division of labor where production processes are divided to different economies around the world. Say for example the manufacturing of a certain goods is done in a different country while the marketing and design is done in a certain country as well. 3. Examine the importance of studying international business and trade to the accounting profession. Studying international business and trade is essential to the accounting profession because in this field, it is very flexible in terms of the department that we can engage in. International business and trade helps us, students, widen our perspective in Cinderelli M. Vera Cruz BSA 3-A International Business and Trade business not only to the goods and services but also to the management considering its policies. Learning international business does not only train us to compete to international business but also as to improve the business as well. Every nations has its own different culture and practices, and so to its operations of business that has its own ways. The management differs that it affects the other functions of it business. Having to understand international business and trade, it provides us knowledge and ideas to which we can adapt to in our decisions that may contribute to the improvement of the management. It also gives us better understanding in terms of the policies that the business is affected to. International business and trade gives an overall impact in our course since it links to the operations that we might engage into. 4. Why do firms engage in international business and trade? International business and trade plays a vital role for some firms because of their objective which is to expand sales, acquire resources, and minimize risk. Engaging internationally for some is great risk but it also can result to great rewards and returns. Engaging internationally can results to more resources, customers, increase productivity, sales, labor and etc. as to its sales, more customers will be reached and that it can also gain more ideas for existing and potential customers. It provides larger opportunities like the diffusion of new information, technology, ideas, and money around the world. They may also face backlash such as to Global Corporation that they face legal issues to other countries and they miss local touch which result to lower demand. But engaging internationally can really boost business for better opportunities. 5. Explain the operations and influences of international business to a specific firm or industry (e.g., Jollibee, hotel industry, etc.) International business and trades has influences a lot of business as of today. One of the examples is Nike. As to its operations, they have division of labor. In terms, of manufacture, it is done at Chine and Vietnam but its design and marketing was done at US. Another example is Apple products where design is made in California and the manufacturing was done at China. One of the reasons of the division of labor is because products and labor are cheaper in some countries that’s why it is efficient for some business to produce their product in that certain countries. International business and trade helped a lot of business in order for their operation to become more effective and efficient. With this, it results to the growth of their business.