ADMS 1000 Chapter Notes - Chapter 8: Absolute Advantage, International Monetary Fund, Economic Union

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Modir

Document Summary

Globalization is a process involving the integration of world economies. These are the positive outcomes a business would gain from entering the international context. Potential for sales growth: it helps a business expand its markets. Increased sales are typically the (cid:272)e(cid:374)t(cid:396)al ai(cid:373) (cid:271)ehi(cid:374)d a (cid:272)o(cid:373)pa(cid:374)(cid:455)"s e(cid:454)pa(cid:374)sio(cid:374) i(cid:374)to i(cid:374)te(cid:396)(cid:374)atio(cid:374)al business. Obtaining needed resources: to obtain resources that are either unavailable or too costly within the domestic borders. Acquiring foreign imports is a case of obtaining needed resources. As well, the decision to locate businesses or plants in developing or underdeveloped nations may be a means to access inexpensive labour. These are the forces that act upon all businesses to create an environment where competing successfully means competing globally. The force of competition: a business that seeks to grow needs to consider the markets beyond its domestic borders-this is where new and potentially untapped market opportunities still exist. A business may find that it must compete against domestic and foreign competitors.