INTERNATIONAL BUSINESS AND TRADE REFLECTION PAPER
NICANOR, CELSO JR. B.
BSA Term 1.3
Reference/Source: Various Websites
The concept of International Business is that, it is the branch of business that deals with the global flow of
trade, finance, and production. With international trade between countries, it is crucial for companies to
not only have a business plan in place but also to understand the intricacies of the global market. In order
to maximize these opportunities, it is important for multinational corporations and organizations to clearly
determine what their competitive advantage will be as well as how they can best reach out to different
segments and communities around the world.
The rise of globalization started during the early 1900s when the world began to economically connect and
integrate themselves. The growth of multinational corporations has been a key factor behind this
expansion. These companies were able to respond and adapt to changes in the market by expanding their
operations into foreign markets (Favre, & Davis, 2007). However, because these operations involved a great
deal of research and planning it was often difficult for these companies to accurately gauge how well their
plans would work out. Because of this difficulty in finding competitive advantages and strategies for
different markets, multinational corporations have had trouble finding ways to effectively manage these
international landscapes.
International Business is also affected by other developments such as political turmoil in foreign countries,
which can have an effect on another country’s economy.
I have also learnt that the U.S position in international trade was raised by its position in the Cold War.
During the Cold War, the United States sought to maintain a large economy and armed forces in order to
compete with the Soviet Union, which was a superpower-sized economy and military at that time. With this
strategy, capitalism (a system based on profit) was used in order to keep America’s economy strong and
economically competitive against the rising communism. These policies included policies that restricted
trade abroad such as tariffs but also included investment restrictions that prohibited foreign capital from
entering America‘s market. Therefore, this led to an imbalance between America’s supply of products and