Business Ethics and the Global Dimensions of Business
Recent economic crises have changed the market structure in which large and small business corporations are competing for new avenues to expand their operations. This expansion has taken different level leading corporations to search for a new market distinct from its local environment. Emerging into a foreign market creates an opportunity for both the enterprise and the foreign country. This form of business operation is known as international trade, meaning that the company is investing in another country. Traditionally, well established, large corporation were known of having the capability to enter into international trade, however as many governments relaxed their cross border trade restrictions its open the door for global market (Roudini & Osman, 2012, p. 18).
The global market might be an appropriate direction for XYZ Construction expansion program as it is likely to improve the Initial Public Offering within the next 12 months. A company entering the global market should note that it is a distinct and separate national market defines as one large global marketplace where business entities from different countries import, export and invest (Hill, 2008, p. 7). According to Griswold (2007), many small businesses in the United States are benefiting from the rapid growth of the global market particularly in the Asian market. China for example, has a larger population with significant resources that exhibit an opportunity to expand business operation in such an environment. Business enterprise planning to move its operation into the Asian market or another foreign market must first evaluate its goals, capabilities and resources and determine whether the prospective market will attain the vision of the owners, investors and stakeholders (Quinn, 2010, p. 2).
The prime factor that drives many businesses towards globalization is the business opportunity and the rapid change in technology....