What is Global Business?

The global business is defined as a commercial activity that is undertaken by organizations and companies operating in multiple countries worldwide. Global Business is defined as any establishment that has international presence. There are numerous examples of successful global businesses, such as Apple, Google, Pepsi, e-bay, Amazon, Walmart, etc. spread across the globe. The primary reason for such a spread of business is the offering and the particular requirements of the business organisations.

The following section discusses the topic in-depth by using studies performed by researchers along with some case studies.

Market research and analysis

1. The most popular phone company Apple designs all its products in America but are manufactured in China, due to the availability of efficient and cheap labour.
2. The global centres of Apple are spread across many countries and continents.
3. The fashion line Zara has its production line spread across Europe but has trade centres in almost more than 80 countries due to its popularity.
4. The automobile industry is one of the best examples of global trade as the cars of big motor companies such as BMW, Audi, Mercedes, Ford, Toyota, etc. are manufactured and extensively sold across the world.
5. The basic idea according to the research conducted is to convert the business into a global brand for better visibility and sustainable future.
6. One of the oldest examples in the food industry is McDonald’s which has one of the highest amounts of global coverage compared to its competitors.
7. Majority of the countries have developed a system of foreign direct investment that has led to the accelerated growth of many of the countries.
8. The countries have relaxed tariffs and taxes imposed on imports and exports along with few exceptions which have led to tremendous growth in the spread of global businesses.

Strategies and impact of technology

• The decentralisation of assets and businesses is very much necessary for sustainable growth and maximizing profits
• Many of the countries are known for their specialised product and thus have made a network of global centres to increase the outreach of the product
• There are a lot of important products that are manufactured by experts but have great demands across the globe such as essential medicines and chemicals
• The e-commerce and retail businesses such as Amazon and Walmart have made a mark in every country on the globe due to its advanced technology and exceptional services
• The most amazing examples are of the IT solution provider companies such as Google and Microsoft that generate a huge amount of revenues generally running into billions and provide livelihoods to millions of people spread across the world
• The basic agenda of the spread of global businesses is to produce and distribute the knowledge and wealth of resources across countries
• The financial scenario of the world provides ample opportunity for growth by the provision of easy financial loans along with easy and flexible repayment options for large business players and industries
• The global business is sometimes very essential for major defence deals that is a matter of national security and ensures the promotion of peace

Important facts regarding global businesses

1. Many of the market experts and scholars have argued that many large international players are spreading their businesses in order to exploit the regional resources and make a huge amount of money.
2. The centralisation of profit is very large and the distribution of revenue is less.
3. Many of these big businesses create a threat and risk of domination above other countries as was in the historical case of Great Britain who came to trade in many countries and slowly began to exploit the resources of the country.
4. The experts hence alert the nations about the intention of some of the global brands that usually target those countries that are financial not strong and highly vulnerable.

The coming of advanced technologies such as artificial intelligence and machine learning along with the popularity of the social media sites, such as Facebook and Whatsapp have empowered even the small businesses to establish their businesses globally which is one of the great signs of global peace and sustainable development.