Question

Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in Great Britain? North America? Hong Kong?

Answer 1

Answer:

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Explanation:

In the past 30 years, there has been a move away from a time in which nationwide economies are comparatively self-sustained entities, a period of isolation through the barriers to trade and investment, and uncertainties in government policies and regulation, business systems, culture, moving in the direction of a world where challenges and barriers to global trade and investment are declining, cultures are uniting, and national economies all around the world are merging into an integrated, interdependent global economic system.

Considerable implications for British firms entail the need to plan beyond the market in Europe and America for investment and opportunities. The Consumer spending rate in developing countries is now growing most rapidly.

British firms now presented with the opportunity (and the threat) of drawing the attention of Asian firms interested in Britain as a launch pad to gain access to the very lucrative European market.

For the North American companies, the same is the case, even though the significance of the increasing prosperity in Latin America suggests a potentially huge market.