Reflective Portfolio 05205 Essay Example | Topics and Well Written Essays - 2000 words

Reflective Portfolio 05205 - Essay Example However the participation of the company in the global market also depends on the comparative advantage of the firms that is the firms can export goods in which the firm specialises as well it needs to consider the cultural as well as the political issues of the trading partners. The entrepreneurs within a market focus on technological progress. Through internalisation a new product can be known that the firm may produce and then export the goods to other countries. (Ethier, 2005; Hoekstra and Hung, 2005). The products produced by the firms also depend on the demands of the customers and the entrepreneurs apply various strategies related to internalisation in order to increase the production capacity of the firms. International trade links the home and the host countries through the export and the import of goods that take place. The main factors that play a key role in promoting the globalisation within the economy are the technological innovation that brings in a change within the economy, economic and political changes that take place. The technological innovation within the economy enhances the transportation and communication process at low costs. A large investment in the road infrastructure allowed greater share of trade to be conducted by trucks movi ng between North America and Western Europe (Lane and Milesi-Ferretti, 2008). The shifting of the coal miners towards oil and gas industry is also considered as an important element of Globalisation. The currencies were convertible and the balance of payment restrictions was eliminated. The birth of the Euro Dollar market in the global economy was a move towards the availability of the international liquidity and the cross border trade relations that was set up in Western Europe (Chen, 2006). The organizations are expected to carry out the exchange of goods so as to promote