Академический Документы
Профессиональный Документы
Культура Документы
Promotion of international business benefits all the countries across it which takes place.
The countries from which goods are exported benefit by incoming foreign exchange and
wealth, while creating employment for their workers. In countries which import those
goods, the consumers benefit by getting better products at a lesser price, thereby creating
onus these days on all governments to facilitate it, a task that is easier said than done.
The main problem faced by governments is that even though the majority of people
benefit by international business and trade, there is always a section of local business
which stands to lose in the competition brought about by international business, and
which leaves no stone unturned to oppose and thwart them. In the face of such opposition
and lobbying, the role of governments in international business becomes even more
critical.
There are many other aspects in which also governments play a very important role in
goods require ports with adequate capacity to handle high quantity cargo, as well as
adequate roads or railway networks for transporting them to the markets, and by creating
such infrastructure, the government can make business in their country an attractive
coming from outside the country. Today, few companies are likely to be tempted towards
a country where safety of property is doubtful, and not every company would be ready to
live with graft and illegal rent seeking. Governments can make a big difference by taking
Third, international business if full of various risks, and governments can play a great
role in minimizing those risks. A clear and consistent policy towards foreign investment
currency, inflation and foreign exchange rate is another important way of reducing these
risks. Ensuring property rights and contract enforcement is also one of the ways in which
Businesses are run on the basis of market forces, but that does not undermine the
complement each other in this regard. Apart from this, the domestic industry might not have
the capabilities to succeed in a particular sector nor the expertise to develop that sector.
Therefore, FDI becomes necessary for the growth of that sector. Moreover, opening up of the
economy is needed for admission into the WTO or the World Trade Organization, which means
that in order to export to other countries, emerging and developing market economies have to
open up. These are some of the reasons why many governments in developing countries
encourage foreign investment and allow international businesses to setup operations in their
countries. However, whether the successive governments continue the same policies or not
depends on a host of factors that include the ideological bent of the governments, the
compulsions of politics, and the fact that foreign investment might not have succeeded in kick