Narrative: International Trade and Foreign Direct Investment Essay

Submitted By mi0803
Words: 1758
Pages: 8

Importance of International Business

The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial and unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government.
International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter.
From the international laws point of view a sovereign state is independent and free from external control; enjoys full legal

The international business and trade environment is the backbone of global economy. Trade agreements to buying and selling goods and services internationally gives manufacturers in various countries the opportunity to expand produces and services. The domestic market. Trading across national borders increases sales, creates jobs, balances seasonal fluctuations and provides a variety of pros the global economy continues to strengthen, international trade continues to be in demand. In Hong Kong's economy is highly dependent on international trade, free market economy system. Because Hong Kong lacks natural resources, food and raw materials required input from the outside. In fact, the import and export (including re-exports) in excess of gross domestic product. Even before the 1997 reunification of the PRC, Hong Kong's trade and investment with China are closely related to mainland China since the 1980s has long been Hong Kong's largest trading partner.
Economic conditions
The world's freest economy
The highest level of global service-led economy (services sector accounted for GDP 90% or more)
Asia's most competitive economy
Asia's second largest foreign direct investment destination, after Mainland China
Asia's third-largest source of foreign direct investment, after Japan and China
Hong Kong is a free port, through free trade to flourish. Open policy making Hong Kong one of the world's largest trading economies, but also to become an international financial and commercial center for the Asia-Pacific region and the Chinese mainland services.
In addition to the WTO, Hong Kong also actively involved in other trade-related international organizations. Hong Kong in 1991 to become Asia-Pacific Economic Cooperation APEC and the Pacific Economic Cooperation Council members. Hong Kong is the Asian Development Bank and the World Customs Organization's official membership. China Hong Kong is also the United Nations Asia and the Pacific Economic and Social Commission for an informal member of and participate in the United Nations Conference on Trade and Development. And since April 1994, Hong Kong has become for Economic Cooperation and Development (OECD) Trade Committee of the observers. Hong Kong July 1, 1997 onwards to Hong Kong, China continues to actively participate in Asia-Pacific Economic Cooperation Organization, the Pacific Economic Cooperation Council and the Organization for Economic Cooperation and Development activities of the Commission. Hong Kong's free trade policy that does not set any barriers to trade. Therefore, both inbound and outbound goods without paying customs…