1. Table of Contents —with page numbers. Include All sections as listed below as Side Headings with the main topic letters (A through P) and any subtopic numbers (A--???) in both the Table of Contents...

Running Head: ASSIGNMENT
ASSIGNMENT
3
REGIONAL ECONOMIC INTEGRITY
Table of Contents
A. Globalization    3
B. National differences in political economy:    4
C. Differences in culture    5
D. Ethics in international business    6
E. International trade theory:    7
F. The political economy of international trade:    8
G. Foreign direct investment    10
H. Regional economic integration    11
I. The foreign exchange market    13
J. The international monetary system:    15
K. The strategy of international business:    16
L. Entering foreign markets:    17
M. Exporting, importing, and countertrade    18
N. Global production, outsourcing, and logistics:    19
O. Global marketing and research and development:    20
P. Global human resource management:    21
A. Globalization
According to Beck (2018), globalization can be defined as the process of developing an integrated system of global economy. It is generally marked by free trade or free flow of capital between integrated group of companies or government around the world. The immense development in science, technology and transportation has helped in the advancement of globalization. With the advancement of globalization there is an increase in global interactions which in return is helping the growth of international business, culture and ideas (Beck, 2018). Thus globalization can be defined to be the economic means of interaction that is closely associated with social and cultural aspects. However there are several diplomacies and conflicts related with globalization. Globalization can be of several types and the basic types of globalization are discussed in the following points:
· Political globalization: This defines the amount of political cooperation or collaboration is there between different nations around the world. This helps in establishing um
ella cooperation that helps in abolishing conflicts among the member nations. The degree of political cooperation has increased after the establishment of organizations such as the World Trade Centre, EU and UNO (Stagno, 2016).
· Social globalization: With the development of information technology and social media such as twitter and Facebook it has become very easy to connect with the people around the world. Thus people from one part of the world can get updated about what is going on in a different country just with the help of a click.
· Economic globalization: It can be refe
ed to as the interconnection between economies of different nations that became possible with the growing demands of international trade.
B. National differences in political economy:
The scenario of the international business is much more different and complicated in respect to the domestic trade affairs. The influence of government decision on international trade affects greatly on the decision making of the business. Different countries have their own set of political, legal and economic system which complicates the whole process of international trade (Kolk, 2016). For example, when there is a business policy among a developed and a developing country then the developed country will extract raw materials and cheap labor from the nation and export their products to the developing nation. Each year billions of dollars’ worth of used clothes from USA are being exported to the Third World countries such as Kenya, Libya etc. Other important aspects of international business are cultural differences and political factors. Cultural differences may vary drastically from the education level of the people to the skillset of the population. In general, the people from the developing countries are prefe
ed as they are cheap and can work hard. Economic stability or economic development of the nation also determines the level of international business among the participating nations.
Political economy is mainly refe
ing to the interdisciplinary studies between economics, political science, law and other disciplines. It helps to explain the crucial role that politics plays in determining the economic outcome of the international trade (Kumar & Steinmann, 2015). It helps in determining how the political decisions are helping in influencing and flourishing the business and helping the nation to gain an economic stability.
C. Differences in culture
International business means dealing and working with great diversity of people from all around the world. Different countries definitely implies to a wide range of culture and ethnicity. It can help in sharing ideas of different cultures and help the company to develop as a whole. The effects of culture on international business can be defined in the following points:
· Interpersonal style: The style of working or approaching with people definitely varies from culture to culture. It helps in determining how they talk to the business partners, so the style of talking or body language is very important for comforting the business partner and working with them (Green, 2018). It is very important to know the culture of each nation so that it becomes easier to deal with the local workers.
· Time: In many cultures around the world it is mandatory to follow time and deadline to finish up the job. But in some countries they don’t believe in forcing workers to finish the assigned task within a speculated time period. So for a person habituated in working under deadline it will be very confusing to see his Coworkers taking their job casually and finishing them at their own pace of time.
· Laws: Laws and tariffs vary from place to place. Colander (2018) opined while handling international business it is very important to understand the rules and regulations before starting up the business. Understanding the laws of different cultures gives them transparency and helps the organization to run smoothly and avoid legal issues.
D. Ethics in international business
International business ethics can be defined as the standards or principles that governs the actions and behavior of the organization. The greatest challenge faced while maintaining international business ethics is that each country has their own sets of ethics and culture so maintaining a standard etiquette to standardized business etiquette is very important. So now a days multinational corporations use policies of cultural relativism where the general business ethics followed by the nation is followed by the business organization (Ramaseshan & Kudrich, 2015). It is equally important for the organization to follow the ethics and make the employees aware of the importance of ethical practices and how it can enhance the working environment of the organization. Therefore for the organization who are doing business internationally It is very important for them to give importance to international business ethics rather than their own company principles. Then comes
ibery which gives serious challenges in following international business ethics as
ibery is a very common factor and practiced in many cultures. In some countries
ibery of the government officials is totally banned but there are several countries where
ibery is the means of doing work. While companies could change their ethics and follow the culture of the respective country but it is very morally and ethnically very much inco
ect to follow something that is inco
ect because at point of time it is bound to
ing down business (Gillespie & Riddle, 2015). Although the organization can earn profits by
ibing the government officials but it will hamper the basic idea of capitalism. The Foreign Co
upt Practices Act was established in 1977 to monitor and regulate I’ll practices followed by the companies to earn a place in the foreign market and flourish their business.
E. International trade theory:
International trade theory mainly deals with the different aspects or models of international trade which has been developed to understand the concept of trading goods and services globally. But the theories of international trade have undergone a number of changes over the years but the basic principles remain almost the same as the domestic trade theory. The main motive of the trade is to earn the maximum profit possible i
espective of domestic or international trade (Leonidou & Hultman, 2018). The main differences are international trade involves more money as international borders include policies and tariffs. The main profit earned by international trade is through the exchange of goods and services among different nations around the world. The concept of international trade theory has intrigued many economists and some of the famous theories are mentioned below:
· The Recording model of international trade has been developed under competitive advantage. The model states that the countries should only involve in trade when they specialize in producing the product and has competitively advantage.
· The Huckster-Ohlin model emphasis on the factors of production. This theory states that countries should involve in trade after they are specialized in producing and making sure that there is abundance of product in the native country.
· The Gravity Model: This model suggests the economic sizes and distance between the...