Brittany Gagne Northwood University Fall 2012 INB-3000 The Positives and Negatives of International Business International business is defined as any commercial transaction that crosses the borders of two or more nations. This process occurs through imports and exports. Imports occur when good and services are purchased from abroad and brought into a country. Exports are the opposite; they occur when goods and services are sold abroad and sent out of the country.
There are many benefits for a company to go international. When business went global, it changed the way the world does business, forever. No longer do nations have to produce their own goods and services. No longer is a country limited to what resources were available to them in their own country. As companies went global it made it easier for consumers to get their hands on anything they wanted or needed. Instantly, the market of consumers went from being one country or demographic area to being worldwide.
This boom of business sent of the need for companies to find cheap labor. The companies that started here in the U. S. eventually made their ways overseas. Looking for cheap labor, the set up factories in developing countries where labor costs were low. Unfortunately the working standards in these countries are low too. The workers overseas are often treated much worse than the U. S. workers. The factory workers suffer harsh conditions such as working six or seven days a week. ,no medical care.
Often times the factories are dirty and dusty and under lit. Workers are forced to lie about their working conditions or else face consequences such as lash outs from employers or loss of their jobs. If they lose their jobs they cannot support their families. There are children who are forced to work in the same conditions as these adults and who often suffer through the same if not worse consequences. Unfortunately they have no choice but to work or their families may starve.
The problem with this cheap international labor is that it hasn’t been regulated. There needs to be a way to regulate work standards worldwide in order to protect all people. Another advantage of international business is the increased investment opportunities. With globalization companies can move capital to whatever country offers the most attractive investment opportunity. This prevents capital being trapped in domestic economies earning poor returns.
