What is a global business?

Global business is a profitable company that operates in more than one country. Many goods and services are looking for people around the world, and the only company can often provide them more efficiently than many local companies can. However, there are a number of obstacles to establish global business. Also negative reactions to the expansion of some companies to international markets.

businesses are usually based in the home country and have branches in other countries called host country. The administration of large -scale operations of the company is often carried out at the site of the registered office. Offices in host countries usually focus only on the sale of products and services in this country. However, if global business needs a lot of production work, this work can be carried out in poorer countries where cheap work is widely available.

Many of them consider the Netherlands to be the first global business in East India. The company was Founded in 1602 in Amsterdam, Holland, to properly colonial trade in Asia.For most of its history, it enjoyed a monopoly state or very small economic competition. However, his operations were met with hostility by some indigenous groups. Corruption eventually prevented the operation of the Dutch company East India and was bankruptcy until 1798.

Many businesses have spread to global markets since the end of World War II. Relative political stability, improved transport and the arrival of digital age helped to remove traditional obstacles to opening global enterprises. This process of expanding business to global markets is sometimes called globalization. As with the Dutch Society of East India, globalization may have a negative impact on some populations. The process of expanding business operations around the world has been met with great criticism of the above -the -year.

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oil industry today includes a number of global businesses. This is called unelastic demand and is one of the reasons to catchthe winding of global business. People around the world depend on oil for their daily lives, and therefore oil companies are very sure that their goods will be purchased if they expand to new countries.

One threshold for establishing global business is cultural diversity. It does not do very good to advertise a product in a language that local people do not speak. One company had some difficulty in selling its products toothpastes in Spanish -speaking countries because the word in their name had a derogatory meaning in Spanish. Failure to take into account the local culture may inadvertently offend the population in the host country. This can lead to loss of profits or even hostile reactions against global business.

Another obstacle - or advantage - when creating a global business is that there are different tax codes of the country in different hos. For example, Phillip Morris International sells cigarettes in more than 160 countries. Cigarette taxes can be very different from ground to z z ze zme; They are generally high in Western Europe, but are low in other regions. The local tax law affects the final price of products on the market and, on the contrary, affects the profits that businesses have.