International Business in the 21st century

Numerous elements comprising the global economic environment influence managers’ decision-making processes in the 21st century. A few of these factors include the number of firms engaged in competition within a given market, the proportional size of said firms, cost implications, market demand, and the simplicity of market entry and exit. These factors are influenced by the globalization process. There is a trend toward increased integration of labor, capital, and goods; consequently, these factors impact managerial decisions.

International business examines managerial decisions based on a cost-benefit analysis in the global economic environment, whereas international economics investigates the interactions within the global economic environment. Therefore, understanding public policy, business, and international finance necessitates a foundational understanding of international economics. Managers must thus have an understanding of the factors that affect international trade and business in the 21st century.

International economics is not, nevertheless, autonomous from geopolitical influences such as armed conflicts and embargoes. It is critical to comprehend these to prevent erroneous decisions from being made based solely on economic factors.

Factors that affect international trade and business in the 21st century

Demographic factors

Are considerations of population distribution, age profile, demographic trends, and projected developments significant for administrators of international firms? Indeed, they are. Corporations diligently scrutinize these trends to forecast the probable ramifications they may impose on their operations and business strategies. The following are examples of how population trends influence business decisions:

-Automobile manufacturers that have relocated production facilities to China to accommodate the middle class’s expansion. Conversely, the situation has been different in India, where the population has exceeded that of China. The reason for this is that India’s income levels are insufficient to generate a significant demand for automobiles.

-Investment firms are increasing their stakes in offerings tailored to aged consumers. Some examples of tailored offerings are juice cartons that do not spill, bottles and jars that can be easily opened, and user-friendly electronic devices;

-Pharmaceutical companies allocate significantly more resources towards the advancement of novel medications that are indispensable in Western societies, as these sectors generate the majority of their revenue.

Relevant macroeconomic indicators

Income per capita or median?

The per capita income of a nation provides insight into the standard of living of its “average” citizen. It is computed by dividing the gross domestic product of the nation by its population. Nevertheless, the per capita income fails to provide any insight into the distribution of wealth across the nation. Therefore, it provides minimal benefit to a company that intends to sell its products in that particular nation. Therefore, it is critical to possess knowledge of the median (or middle value), which denotes the point at which half of the observations deviate from the mean (average) in size.

Economic globalization

Different people have different understandings of the concept of “economic globalization”. However, it centers on the decline of national markets and the rise of global markets as a company’s focal point of business. Globalization applies to the production and sale of goods and services or the procurement of materials. The global market is dynamic in many ways- thus, the rules of competition in the global market are constantly changing, and businesses have to adapt. In the same manner, disruptive events like the COVID-19 pandemic or wars have forced logistics managers to reconsider the importance of short supply chains.

While radical improvements in the cost of communication have led to a freer movement of goods, the COVID-19 pandemic demonstrated the importance of short supply chains in the event of unseen disruptions. Furthermore, other non-economic factors such as culture and values have played a crucial role in the decisions of many American companies to nearshore their procurement to Mexico, even if labor costs are much higher than those of China.

Testimonials

Mikael Andersson, Area Manager Northern Europe at Launch Europe

“I had the pleasure to have Helen both as a teacher and coach during my university studies in Stockholm. Her brilliant business know-how and real-life experience – and not only “read from books”- really make the difference from good to excellent!

Helen gave classes in Logistics, export and advanced business English. To that she also taught business-German and German export/logistics in native German, she’s a real language-professional also speaking Spanish and French fluently.
I definitely have Helen to thank for my success in the export / German business and warmly recommend her for any international business regards.”

Renata Silva, Insurance and Claims Specialist at Dachser

“Helen was my teacher at Folkuniversitet Stockholm and it was a great pleasure to follow her course of Logistics. Her classes were very interesting, dynamic and full of good and intelligent discussions. Besides that, she was my mentor and helped me to write my thesis in the conclusion of the course.
During the thesis she was always available to solve my doubts, to give advice and to provide relevant material. Her insights guided me in the right direction to finish my studies.”

Sandra Caroline Jonsson, SAP TM Consultant, Nordics and Spain Market Coordinator

“Helen is the best mentor and lecturer I have ever had. I would have not found my path without her support and her skills of teaching you to think outside of the box. Not only is she very pedagogical but she also has many years of experience which makes her the perfect lecturer as she does not only teach you the theory of things, she talks from actual experience which gives a depth to what she says and teaches. I recommend Helen 100% to whoever wants to hire a top-class lecturer and researcher.

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Adam Sliwa, Personal Assistant at Jag Advisory

“One of the best professors I have ever had. Always professional, always on time, savvy, and very likeable. She knows very much about international business and logistics and was always eager to help students. Helen has a lot of integrity and passion. Helen is a professor that students remember and admire.”