Impact of International Business on the Global Economy

2010 Niki Geiersbach 119 THE IMPACT OF INTERNATIONAL BUSINESS ON THE GLOBAL ECONOMY Niki Geiersbach Abstract With the dawn of globalization, international business is becoming increasingly popular. Multinational organizations are among the most profitable in the world. A company needs to be aware of the language and culture of the country where it plans to embark with its investment. Politics and laws of the nation can either make international business easy or hard. With the success of international business, its future is gleaming, on a global scale. Geiersbach N. - The Impact of International Business on the Global Economy 120 Business Intelligence Journal July The International Business Imperative Revolutionary changes in†¦show more content†¦Business Intelligence Journal - July, 2010 Vol.3 No.2 2010 Niki Geiersbach 121 1994, an increase of 6.9 percent over that in 1993 (â€Å"1996 National Trade†). As an example of import policies, when Austria, Finland, and Sweden joined the EU on January 1, 1995, these countries adjusted their tariffs to the EU’s common external tariff, resulting in increased tariffs on $3 billion of US industrial and agricultural exports. The European Commission was required to negotiate with the US and other affected trading partners a package of compensating tariff cuts. During 1995, the EU adopted interim compensation for the US under which the EU continued to apply pre-accession tariff levels on imports into the three countries on most of the affected industrial products, but provided no compensation in agriculture. In December 1995, the EU and US concluded negotiations on the permanent compensation owed to the US. Some of the concessions were in the form of acceleration of tariff reductions agreed in the Uruguay Round, while others involved reductions of tarif fs beyond levels agreed in the Round or the establishment of tariff-rate quotas. EU member states had widely differing standards, testing and certification procedures in place for some products. These differences served as barriers to the free movement of these products within the EU and could cause lengthy delays in sales due to the need to have products tested and certified toShow MoreRelatedBusiness Environment Economic Systems, Fiscal Monetary Policies, Cc Regulatory Bodies, International Trade British Economy, Global Factors Impact on British Organisations, Analysis Implications Joining Eu5548 Words   |  23 Pagesdiscovery of how nations, companies or individuals distribute economic resources or inputs in the economic marketplace. Traditional business inputs are land, labour and capital. There are three major systems that can be distinguished in many parts of the world economy within these basic models there will be a range of variations and differences. 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