International business short essay Example | Topics and Well Written Essays - 750 words

International business short - Essay Example Regional integration further helps countries to benefit from absolute advantage on goods that they are able to produce at lower costs as compared to their neighboring countries. There are different theories that characterize regional integration which include removal of tariff barriers on trade. Through the removal of tariff barriers, companies are able to reduce the costs connected to marketing (Drexl, 2012, p.17). Another approach is adoption of external export policy that is common and this ensures that the integration does not discriminate on third parties conducting business with the member countries. Mobility is also enhanced through regional integration where movement of goods across borders is easy and fast (Drexl, 2012, p.21). Harmonization of policies related to economy further ensures that member countries have a common currency of conducting trade. Examples of regional integration include COMESA, ASEAN, Free Trade Area of Americans and African Economic Community (Sergi & Adekola, 2007, p.45). The different regional blocs prospective are to create a common market and boost their bargaining power in the international market. In summary, regional i ntegration enables member countries to expand their market and reduce costs related to exports due to reduced trade barriers. Culture is defined as the set of norms, beliefs, attitudes and values within a specific group of people (Deari, et al., 2008, p.18). Culture could be based on different aspects which include language, religion, race, ethnicity, income level and age. Culture is important in international business in that it influences how easy international businesses penetrate new market in foreign country. Culture is varying and changes from one region to the other and thus understanding these changes is important for international business managers (Ferraro, 2002,