The international business and the global economy are dependent on each other for success. The USA economy is the leading nation in world innovation and also in creativity. The international trade administration serves to strengthen competitiveness of the US. This undertaking does much in the promotion of trade and investment so as to ensure fair trade through enforcement of the trade laws and the agreements. The number of consumers of the locally made products in the US only makes 5%. There is therefore need to diversify trade so as to boost the economy. International trade usually helps companies to grow and hence become more competitive in the international arena.
The economy of any people is subjected to many factors that usually determine the behavior of the international business. The oil industry for example has become the center of the world business. There are many factors such as availability of commodities, technological advancements, political factors, competition and business rivalry that determine the trend taken by international business.
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Most of the world oil producing nations has the right to determine the supply they can release to the economy, the right to determine which nations are more favorable to sell to, depending on the benefit they get from such an opportunity, the right to determine the amount to charge for such supplies either individually or through the cartels. The availability of resources and capital to exploiting such resources will determine the turn of the economy. Nations like UAE have the necessary resources and expertise to release the oil to the international market. Oil and gas are fundamental sources of fuel for automotive and other power driven machines. These nations impact the international market through its ability to supply oil to many nations. The government has also the willingness to supply the oil continually to their customers.
Most of the African countries have many untapped resources. The poor technology resulting from inadequacy of the capital base that is insufficient makes most of the African countries to be typically unable to contribute adequately to the international market. African nations also fail to collaborate with the powerful nations that are able to exploit their resources and if they do so, they do this under terms that are unfavorable for them. The overall effect is seen in the international market. This may be taken to imply that the international market will always and entirely depend on the individual performance of the nations of the world. The issue of politicizing the economic world has also affected the international market in a great way. Some countries like Congo are resourceful in many areas, they are however not able to grow their economy since they practice poor politics. Corruption in Nations like Nigeria which are quite wealthy in oil products has made them to experience a slow growth in the economy.
Nations like Dubai have had a very poor resource base but have continually contributed a great deal in the international Market. These efforts bear fruit because of good governance and zero rated instances of corruption. The target markets are also a major determiner of the international business. Some of the nations of the world are known to prefer products that are produced in specific nations. This may perhaps be as a result of the relationship the nations do have, the traditions of that nation or even the tastes and preferences of a certain people. For example, the Arabic nations do not consume pig products while the Indians do not also consume cow products. This is with regard to their beliefs based on religion.
There are a good number of factors that do affect the international business. They cannot be comprehensively outlined and discussed in this series.