International Business Research Assignment Case Study

International Business Research Assignment - Case Study Example However, subsidies, grants and governmental support are not sustainable in the long run. This would only create distortions and would also increase the input costs of manufacturing like cost of power, gas etc. Dependence of an Industry on subsidies, grants and support would only make demand for more support. Globalization calls for augmented interdependence of countries because of their enlarged economic integration via foreign direct investment, joint ventures, trade, migration of immigrants and foreign investment, foreign aid, and international migration of people and ideas. With the eradication of quotas, now, the survival in the international trade markets for countries depends on using the benefits of propinquity from a marketing, design and production point of view and also with an ability to counter the highly volatile market demand. New News about globalization is that the comparative productivity, price, exchange rates, transportation costs and custom duties and or tariffs will continue to affect patterns of sourcing; a new set of factors related to the distribution of products plays an increasingly vital role. Globalization and free trade economy can be termed as synonyms. Globalization is much more than an monetary event. ... ut the limitations of quotas, consumers and manufacturers in one area of the world seek for consumers and manufacturers in another part of the world, and with the international division of labor, greater efficiency can be achieved in catering the market needs and demands. Having better access to overseas suppliers and more sourcing options, companies with established and pliant brands will be able to realize upside potential by taking advantage of outsourcing and partnership opportunities. The ongoing process of evolution in the industry will favor companies with strong brand equity, a loyal group of recurring customers and a proven record in innovation. The economic advantage of integration of free market economies has always been interpreted. Quantitative restrictions / quotas ended under the General Agreement on Tariffs and Trade (GATT) and World Trade Organization kicked in. Approximately over 150 countries are members of the WTO. Gains of WTO and end of quotas can be seen now because of various bilateral and or regional agreements. These agreements provide a free movement of capital and labor which ultimately promotes competitiveness. The most important result of trade and investment, however, is economic growth, which in turn leads to a better environment. That is true because, as incomes rise, the demand for improved environmental quality also rises. Numerous studies have confirmed that, in practice, trade and investment activities usually have a positive impact on the environment. Criticism on Globalization There are various thoughts on the bilateral and regional trade agreements. One thought views that in a multilateral regime, bilateral trade agreements create trade distortions. The level playing field as envisaged by the WTO is thus distorted. For