The global economy is an interconnected worldwide network of economic activities that take place between multiple countries. It involves the movement of goods, services, capital and people across international borders. It is a crucial feature of modern society. It enables economies of varying markets, levels of development, and geography to collaborate. It can also be a source of investment, jobs and innovation for nations. But the world is facing an array of challenges that need to be proactively addressed by both public and private sectors. These include the lingering COVID-19 pandemic, looming crises of development finance and sovereign debt, volatile global commodity prices, geopolitical tensions, increasing inequality, rising environmental degradation and climate change, and growing income disparities between nations. Navigating the Global Economy: International Business and Trade is designed to provide an overview of the international business environment including its major challenges, opportunities and trends.
The course covers topics such as globalization, international trade, foreign direct investments, intellectual property and the impact of the US economy on the global economy. The course is available online and on-campus, allowing students to choose the learning experience that best fits their needs. International business is the license-backed exchange of goods, services, and resources between countries, whether for profit or otherwise. It encompasses all commercial transactions between two or more nations that are governed by agreements on international law and trade policy, such as export, import, and entrepot trade. In a more granular sense, it includes transactions that are driven by nonfinancial goals, like the triple bottom line, corporate social responsibility, and political favor, that can have an impact on an organization’s long-term success.
Trade between nations is a key element of the global economy, and has been since ancient times. It enables rich countries to use their natural resources and assets, such as land, labor, capital, technology, etc., more efficiently than other nations and sell them at a lower opportunity cost. In turn, it allows poorer countries to access goods and services that they would not be able to afford domestically. This is referred to as comparative advantage in economics. International trade is important because it provides economic growth and opportunity for all nations, especially the most disadvantaged. It can also help to reduce poverty, promote peace and stability in the world, and enhance overall human development. The global economy is increasingly interdependent on the flow of goods, services, technology and capital among countries. It is therefore vital for all nations to collaborate with each other.
This is what is known as the global value chain (GVC) and is essential for a nation’s competitiveness in the modern world. Moreover, it is a key component of the development process for emerging markets to become part of the global value chain and compete with their developed peers. However, there are still many barriers to international trade that need to be removed for this to happen. This can be done through fair, enforceable trade agreements and an understanding of the complexities of international business.