International Trade
Nations engage in the process of exchange of goods and services worth billions of dollars. The economic model of the United States has been changed by the high dependency on international trade. America relies on international trade relations to grow its Gross Domestic Product just like any other nation in the globe. The practice of capitalism makes American entrepreneurs engage in different forms of trades not only locally but also internationally. A country that wishes to conduct business internationally must do a thorough research of the country of destination. Many countries across the continent offer different opportunities for international trade depending on the type of resources available. Political, social, economic, and cultural factors play a significant role in determining the best destination for the international business. The following paper discusses international business opportunities found in the African region, specifically in country Kenya.
Overview of international business opportunities in Kenya
Kenya acts as one of the best destination for international business opportunities in Africa. The location of the country on the coast of Indian Ocean and the availability of many resources such as fertile land for agriculture, minerals, and natural resources make the country highly demanded by internationals. Additionally, the country offers a good economic and political background for foreigners to establish their businesses comfortably. As one of the developing countries in Africa, Kenya offers a better opportunity for U.S. based companies to export their products.
It was a surprise to note that Kenya has recorded continuous increase in the Gross Domestic Product for the last five years. The 2007/2008 post-election violence had a lot of impact on the Kenya's economic growth but the country as small and less developed it looks managed to gather up the strength and stabilized her economy. Additionally, it is a surprise to realize how Kenyans are willing to conduct businesses with other nations as revealed by the high number of imported goods from America and China. On the other hand, Kenya is striving to improve its economy and ways of conducting business making it a good destination for international trade. The move by the government to improve the country's infrastructure through the construction of the standard gauge railway, modern ports and high-class road transport creates better opportunities for investors Export.gov).
Cultural advice on first timers in Kenya
The knowledge of cultural differences between different countries plays a role in the success of international trade. The main cultural differences of great consideration are religion, social structures, values, personal communication, and manners (Nickels, McHugh, & McHugh). Kenya has different cultural practices from America, and a new person must understand different cultural practices and values of Kenyans before investing in the country. Kenyans are very social people and love visitors, especially foreigners from developed countries like U.S. The Kenyan culture is not much different from the Western culture, but they have more value for their cultural properties and environment. The Kenyan population comprises of 42 ethnic groups, and each group speaks a unique language. Official languages in the country are English and Swahili, which unites all ethnic groups and foreigners (Kenya Culture 1).
Has global business improved the standard of living in America?
The increasing competition of the global marketplace experienced for the last forty years has seen more workers, goods, money, and services flow across nation's boundaries. Globalization has led to the reduction of prices of commodities in the United States as entrepreneurs bring affordable products to the country through the help of the international trade. The global marketplace has improved the standards of living of Americans. However, American workers have faced major challenges such as poor wages, lack of healthcare benefits, and frequent layoffs that have a significant impact on people's ways of life (Evans 1-2).
Have all members of our society benefited equally? Have middle-class citizens benefited from the economy as much as the upper class?
Global business benefits everybody in the society, but the rate varies depending on the social-economic status of the person. The free market in America gives chances for all people in the society to practice their business knowledge and skills. However, the upper class seems to enjoy more benefits that the middle class. In a debate about the rise of the new global elite, it was discovered that American middle-class's economy grows very slowly compared to the Chinese and Indian. The transformation of the world economy lifts about four people from the middle-class to the upper class in Indian and China while only one person enjoys the lift in America (Freeland). Hence, the global business improves the livelihood of all people in America but at different levels of success.
Has shipping labor overseas benefited the workers in underdeveloped nations?
Shipping labor overseas helps underdeveloped countries acquire new experiences and technologies. Shipping workers from the United States to another developed country, say Kenya, helps in the industrial growth and attainment of new skills. Workers benefit from gaining new experiences from abroad and acquiring better tactics on how to solve problems facing their industries. However, the demand in underdeveloped countries shifts to the employment. Workers in underdeveloped countries suffer from high rates of unemployment as most companies source for skilled labor from abroad (Slaughter and Swagel 3).
Opportunities for companies engaging international businesses
Firms operating in international markets should take advantage of the advancements in technology to improve their operations in international markets. International customers seek for better products produced using modern technologies. Additionally, the firm should capitalize on skilled labor to ensure high productivity and win the global competition.
, just like any other nation in the globe,
Works Cited
Kenya Culture. A glimpse into Kenyan traditions and values. 2015. Web: March 5, 2016
Nickels, William G, James M. McHugh, and Susan M. McHugh. Business: Connecting
Principles to Practice. New York: McGraw-Hill/Irwin, 2012. Print.
Evans, Peter. “U.S. living standards and global competition: Lessons from abroad.” Scholars
Strategy Network, March 2012.
Export.gov. Doing business in Kenya. 2016, January 12
<http://export.gov/kenya/doingbusinessinkenya/index.asp> Web: March 5, 2016
Freeland, Chrystia. “The Rise of the New Global Elite.” The Atlantic. 2011. Web: March 5,
2016. < http://www.theatlantic.com/magazine/archive/2011/01/the-rise-of-the-new-global-elite/308343/>
Slaughter, Matthew, J., and Swagel, Philip. “Does globalization lower wages and export jobs?”
Economic Issues. 11 (1997): 1-13.
