Question

1. Conducting Business during the 21st century has many dimensions. To what extent are national forces being superseded by global trends, especially in terms of multilateral institutions such as the European Union and various economic agreements in the Western Hemisphere and Asia? When a company considers investing internationally, what circumstances should influence how much priority is given to global concepts and/or national differences when evaluating the four alternatives for strategic choice?

Answer 1

European Union and Asia has had long term relationships with trade. However due to strong national instability amongst countries and due to Brexit the situation has been worse off. It has affected the global trend of globalization. Many companies have been affected in European Union because of deals like NAFTA in north America and ASEAN Region Cooperation in Asia. Such national forces and amalgamation between countries has become barriers for EU to expand globally with economic advantages.

When companies invest internationally certain factors which are most considered are the national level governmental relations and its ease of doing business rather than what global trends have been. Companies analyze growth prospects and profits maximising opportunities much kater however it considers parameters like Return on equity and IRR before investing.