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Global distribution of income

Nowadays nations are globalizing, governments are investing in their own nations and in other counties. In the meantime countries are combining together and the revolution of technology has made communication across borders easier. True the innovation of technology global trade adopted a new twist. Therefore international traders are able to do business across the world. Therefore it is for global trade important to gain knowledge of the global distribution, as well as the income and the wealth of a country. In the meantime understanding the overall chances over the time regarding these factors might help their business.

Improvement of technology and globalization has lead to social, distribution and industrial development. Business these days can operate on lager scale and communicate better and faster. Technical innovations, capital investments and expeditions of goods and service has taking on the lead, for they are important aspects of economic growth in a country and reflects the health and wealth of a nation. To operate internationally it’s important to have knowledge of globalization and have general knowledge of business, government and societies.

Globalization it is a process between different figures and factors that includes people, organizations, money and different forms of data that are free to access

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around the world. Globalization had an innovation impact on people lives and new opportunities are available along with the risks. With global distribution you have to consider control, competition and cooperation. Globalization has in a way encouraged the international transport as a result the economic integration has developed and expanded.

For International traders it is important to gain knowledge about the economic variables of the regions and countries over the world. Knowing and understanding that they can calculate the income, population and capital flow of a country they can determine the cost of trade. Knowing that they can define the market value of product or service developed within a certain time in a country and they can investigate the overseas investment of all business production and service that have taking place for that certain country.

By calculating the Gross Domestic Product (GDP) or Gross National Product (GNP) you can measure the economic activities. Understanding the difference between GNP and GDP you can define other factors such as capital. Knowing the economic activities land area and population we can measure they wealth of a country. Having this knowledge is for international traders crucial because they can influence the price of import and export. Making sure that they getting the best value for their product, service or investment. Competitions can influence the price of good or service.

As an international trade it is needed to understand the national economy and the economic activity between business and consumers including the market and the prices. There are different ways to calculate the wealth of a nation one of the these is gross national income (GNI). With GNI you can calculate the total income from all the products and services that has been produced by the national economy, including earns from overseas investments. These measure also the nation’s economic activity also known as gross domestic products (GDP) although GDP and GNI vary from one country to another.

However they are been used to calculate the facilitate comparisons between countries. Economics also use purchasing power parity (PPP) to calculate accurately the living standards in different countries. Knowing the impact of daily exchange rates by comparing the cost of living between countries you can define the Purchasing power parity (PPP). The economic activity has been divided into three sectors. The primary sector such as oil and minerals than we have the secondary sector such as manufacturing industrial produces products and last but not least the tertiary sector such as service industries and distribution.

The global economy has been divided the world into two. The command and operate in the industrial, technological and finance environment. And on the other side we have the natural resources who are resistance to the environmental regulation. However bare in mind the policy measures restricting trade flows. Now day’s government officials are involved in importing and exporting tax and other measures like government revenue to limit the competition. Businesses expand these days faster although governments do get involved and the governmental regulations also expand.

The market economy of Europe and the US is seen as capitalism. In the business environment you have different groups that you have taken in to consideration, including businesses consumers and governments. Each with there own interests. For starting up an organization or a company you have take governments responses and national economic forces into consideration for they can influence your business plans. Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press. p4-388

Although economic growth with healthy capital investments doesn’t mean that reflexes the wealth of the whole society, especially in countries where the population is still growing. Like china or India the opportunities and income between different groups are enormously. The economic environment has explored, businesses invest in developing countries also known as outsourcing. Only by industrialization and investments a countries economic wellbeing can growth. The economic growth of the EU has had up as and downs as like Japan who is recovering from its recession and Germany after the WOII.

After the Great Depression of 1929 the Western government introduced a social security system into the market economy it gives a social justice dimension to the capitalist model also known as the mixed economy. It protects some companies them form takeover, or if they should fall down the government /state will help them. Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p135-223 After the Second World War important aspects like economic, social, and political has been developed, Global exchange of capital, goods, and services.

In the last decades global marketing has developed feather, they become globalized. After the Great Depression of 1929 the Western government introduced a social security system into the market economy it gives a social justice dimension to the capitalist model also known as the mixed economy. It protects some companies them form takeover, or if they should fall down the government /state will help them. Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press.

Since 1970 the US fallowed by Japan influence the trade around globalization, The US has been for centuries influential national economy. They invest in foreign countries. For centuries the US has enormous influence on the financial market around the world. Japan and US they also influence and dominated the foreign investments. These days’ governments across the world are making changing to attract investments. New competitive environment ha been developed and they influence the societies. In 1990 the South and easting countries where showing some economic growth but are now far behind because of financial crisis.

Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p167-383 In the last century the European Union (EU) has been developed. Different counties combined together for political and financial reasons, the EU promotes trade and cooperation between different countries. Between the EU countries there is the freedom of trade, investing and travelling and workers. The EU is as wealthy as the US. The Euro has the same value as the Japanese Yen and the U. S Dollar. However china’s economic is still growing enormous.

Although these day economics are not certain about china’s economic future because of the costs of the natural sources and the Chinese exports especially of the fact that the Chinese policies dominate the business and the media and the government encourages entrepreneurial activity. Trough the economic development businesses are investing in china, private enterprises are settling their business in china and that creates new jobs which is relevant for the Chinese economy. Supply and demand makes companies compete, the demand and the supply determine the price.

Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. P135-388 To summarise thru the innovation of technology, transport and communication globalization was introduced. Globalization had an impact and combined people, business and governments using improved technology. They improved the financial, legal structure around national economies. The improvement from these factors has made global trade essayer and faster. This had effected on the global economy by innovate the political, social cultural and technological environments .

Relationships between different countries and business had expanded. Businesses are exploring other countries and investing in foreign countries as a result workers in their own countries loss jobs to low-wage countries. But at the same time changes in the financial sector have also a positive side they attribute to the process of globalization and creating new jobs in the countries where business are investing in it. As a result Asian countries have embraced these opportunities and they have adapting to the changes of the western social and cultural values.

Reference/Sources

Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press. p4-388 Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p135-223 Marrewijk, Charles van (2007). International economics. Oxford: Oxford University Press. Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. p167-383 Morrison, Janet. (2006). The international business environment . New York: Palgrave Macmillan. P275-348

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