Answer:
Explanation:
1. Global business refers to business and economic activities of companies which cut across different countries. Any company engaging in global business would have access to a market around the world that is bigger than the local business.
Global business create competition on a high level basis among businesses like a company entering foreign market ; would have to compete with local business hence giving consumers benefit of choosing and buying high quality products at lower cost from wherever they want. Example include Starbucks, which have branches all over the world.
2. When people and businesses engage in global business, it will enable a country to have foreign direct investment in which companies are able to compete better in foreign markets and can better reach new customers abroad. Direct foreign investment increases as global business increases because such economic activities will attract foreign investment from multinational companies.
3.
• Tariffs
• Subsidies
• Quotas
• Voluntary export constraint
• Customs classification
° Tariffs are taxes imposed directly on goods imported into the country hence create trade barriers through making imported goods expensive compared to local goods.
° Subsidies refers to government loans, tax and grants giving to local companies as a way of protecting them from foregoing competition.
° Quotas refers to limit placed on the number of goods to be imported into the country.
° Voluntary export constraint like quotas is a limit imposed on the number or volume of products exported to particular country.
° Customs classification refers to classifications assigned to imported products by officials of government officials that affect the size of the tariff and imposition of import quotas.
4. Trade offs between global consistency and local adaptation refers to strategies that companies use when they engage in worldwide operations. Global consistency implies that company would run its plants, offices around the world based on same universal policies and procedures while local adaptation involve companies modifying their standard operating procedures to adapt to differences in governments, foreign customers and regulatory agencies.
