The contraction of the economies of the rich seven nations of the world (the U.S, Canada, Great Britain, France, Germany, Italy and Japan) has been used for a very long time as the measure of global economic crisis owing to the fact that they have been controlling the global market. American Economy, for example, was known to be the most stable economy globally between 2006 and 2007 which made her culture gain much prominence in the whole world as asserted by Dr. Van. But in 2008 the financial system declined, resulting in American economy reducing by 6 per cent. The decline was a surprise because in such a scenario the third world countries including India, Brazil, china and Indonesia are always expected to be the most affected negatively by the fall of the financial system.
India has steadily risen to conquer the global market following a drastic annual growth rate from 5.7 percent in 2009 to 9.7 percent in 2010. The developing countries have been recipients of goods and services from the developed nations such as U.S for a very long time, but countries like India and China have risen to be partakers in the global market. According to Dr. Van, Fareed Zacharia, “…for the first time ever, we are witnessing real global growth, which is creating an international system in which countries in all parts of the world are no longer objects or observers, but players in their own right.” The rise in the economic growth of China, India and Brazil has created fear in the West. The subsequent shift in the global market poses much fear to the west and there are proposals to stop this shift by moving out of the new global order.
Importance of International Business
International business has led to the increased growth of the third world countries in terms of industrialization. It gives these countries an assurance of the existence of an external market, alongside the existing home market, for goods and services they produce. For example, China produces goods that are flowing to the U.S. and Europe. Apart from the market, technology is inevitable for any industrialization process. Through interaction, technological ideas are exchanged leading to the adoption of efficient methods of production necessary for industrialization.
Many nations have grown to have good working relationship as a result of international trade. It has led to the creation of diplomatic offices globally. In India, Mrs. Rao served as an Ambassador of India to several countries such as China, U.S and Russia where she contributed to the existing good relationship between India and these nations. MeadWestvaco, an American company, operates in India while Tata communications (an Indian Company) also operates in America due to the good business relationship between the two countries.
International business leads to the creation of investment opportunities. Through international business, potential investors are able to identify countries where they can invest and expect a viable output. In the article, rise of India to the global Arena, MeadWestvaco (an American Company) has its operation in India and also Tata Communications (Indian company) carry out its operations in America in exchange. Additionally, International Business results to the creation of employment opportunities. Due to the expanded market, many employees are needed to ensure that the market is well covered. Goods produced in India, for instance, get moved to U.S. and other parts of Europe- a phenomenon that creates employment. The foreign companies further create more employment opportunities in the countries of their operations. MeadWestvaco employs so many Indians.
Personal Career Opportunity
The positive shift in the growth rate of countries like India and china has shown a great potential from countries off the West and America. Through this shift, diplomats such Mrs. Nirupama Rao got an opportunity to speak about the growth of their home countries such as India. Through this, an American company (MeadWestvaco) spotted an opportunity for foreign expansion in India. In general, the shift in the control of the global market has led to an increased investment in the developing countries thus creating more employment opportunities for citizens in the countries.
An opening in business opportunities of this kind across the world will play an important role in the much desired expansion of the global markets for all nations of the world- both the developing and the developed nations alike. The subsequent growth in the international business will not only necessitates high demands for the services of business experts but also open up more employment opportunities that never existed earlier on in the areas of business management, administration and business finance. All these emerging fields within the international business arena present students and potential business experts with perfect opportunities so as to practice and advance in their personal business related careers. This particular explosion in the business career is expected to escalate as long as the international business continues to record a positive growth- a trend which is anticipated to hold for quite some time in the whole world.
I strongly agree with the writer that the global market is dominated mostly by products from the developing economies such as India and China. It is most apparent that commodities such as electronic and communication gadgets, pharmaceuticals and agricultural products from India not only dominate the U.S. market but the entire global as well. Therefore the hypothesis by Dr. Van that China, India, Brazil, Russia and Mexico will surpass the present day world biggest economic powers is accurate and most likely. The rise of India, for instance, has actually diminished the control of the global market by the United States. I therefore agree that the rich and developed nations should realize the shift in the global market and begin to adapt to this development.
Considering the on-going trends in the international trade between the U.S. and India, the commercial tie between the two nations is expected to grow stronger in the future. More exchanges of products and both Indian and U.S. multinational companies similar to the Indian Tata communications and Nippon Telegraph and Telephone Corporation to flourish in the two countries courtesy of mutual pacts and collateral treaties. Owing to the good trade and international relations, India is likely to accrue more than $9 billion as the American direct foreign investment. This will pave way for an increased capital flows between the two nations more so in the telecommunications, textile, agricultural and industrial sectors. Iron & steel, machinery, fertilizers, textile, organic chemicals and precious stones from India will be exchanged with electrical and engineering machinery, organic chemicals, optical equipment and aviation instruments all manufactured by the U.S. industries.