Final answer:
The reasons for engaging in global business include access to new markets, securing new or needed products, and reduced manufacturing costs; facilitated by advancements in transportation, communication, and international agreements that lower trade barriers.
Step-by-step explanation:
Reasons to do business globally include access to new markets, access to new or needed products, and a decrease in manufacturing costs. These reasons are pertinent to companies aiming to expand their reach and profitability. By entering global markets, companies can tap into new customer bases and spread their operational risks across a wider geographic area. Securing new or necessary products through global trade can give businesses a competitive edge and provide them with the opportunity to capitalize on unique products that may not be available in their domestic markets.
Moreover, a decrease in manufacturing costs can result from relocating production to countries where labor and material costs are lower. This can lead to increased margins and competitive pricing. Globalization is largely driven by technological advancements in transportation and communication, which have significantly reduced the costs of long-distance trade. Additionally, international agreements and treaties have played a role in encouraging trade by lowering tariffs and other trade barriers.