Current re-shaping of international business

What is it about?

In this research work, the author focuses on the analysis of the current re-shaping of international business. Due to technical progress and to the growth of economic ties between particular countries, participants in the world economy, the benefits resulting from liberalized international trade and from the freedom of movement of foreign direct investments become bigger not only for the industrialized countries but also for the so-called “emerging markets”, that is, the countries that find themselves on the stage of the accelerated development. The key of trade developments within the broader socio-economic context is especially the rise of global supply chains, the general shift of trade power away from the West towards Asia.

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Photo by Alev Takil on Unsplash

Photo by Alev Takil on Unsplash

Why is it important?

It has to be emphasized that there are the needs for new approaches to trade cooperation in the light of the forces that are currently re-shaping international business. It suggests that the multilateral trading system will need to adjust to developments in trade and in the trading environment. What indicates the importance and innovativeness of the research is the presentation of new models of the foreign trade policy and trade interests. First of all it has to be underlined that in the new theoretical terms in the demand for trade policy the specific factor is very important. The low specificity of factors means that factor returns are equalized throughout a region’s economy. On the other hand some factors are stuck in their present uses; therefore, factor returns are not equalized throughout a region’s economy, but are industry specific.

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