International Business Essay Example | Topics and Well Written Essays - 750 words - 8

International Business - Essay Example Many governments are developing national policies, which aims at attracting and facilitating foreign investment. Policy framework is an instrumental element to global investment and trade. However, governments are not adapting a blanket approach to this factor, but reinforcing regulatory policies on foreign trade with a view of accommodating industries policies that favor competitive business practices. The strategies developed at the national level should not only favor international investment, but also protect national business. Largely, the economic policies should focus on the individual needs. At the same time, present investment trends favor regional trade as opposed to the bilateral trade. Arguably, the bargain by regional blocks roots for common economic policies as opposed to the bilateral agreements that tend to favor individual countries. The developing countries are leading in foreign direct investment. This trend seems to suggest that new business openings are more in t he developing countries because of untapped business opportunities. It is apparent from the World Investment Report 2013 that global value chain has an impact on international and foreign direct investment. ... The developed and the developing countries tend to project varied investment trends in the global economy (World Economic Forum 2013). Specifically, countries such as Japan and United States have significant internal value chains and tend to rely less on the global value chains. China, Germany, and United Kingdom significantly depend on foreign trade. The foreign exports in these three countries contribute immense to their economy. A considerable population of these countries derive their income or wage from industries whose primary concerns is to manufacture goods or products for export. Elsewhere, the composition of exports and positions in global value chains depend on natural resources of various found in these countries. For instance, China is hub for manufacturing of nearly all the electronic products. Favoring factors influencing investment in this country is the cheap labor and availability of raw materials. Since the quantity manufactured supersedes the quantity demanded nat ionally, hence the quantity sent to the global market (Ma, Van Assche and Hong 2009 pp 655). Largely, favoring conditions for investment tend to give leeway for various investors to concentrate of investment for export purposes. Another factor that seems to explain the observable trend in the global market and the impact of global vale added chain is the concept of economic structure and export model (Gereffi, Humphrey and Sturgeon 2005 pp78). Players in the global trade seem inject varied input depending on favoring factors. For example, countries such as Singapore, China, and Netherlands derive significant amount of foreign benefit from the entreport trade. A review of Chinese economy for instance, shows that its economy derive considerable amount of foreign