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Transactions like sales , investments , logistics , transportation etc which are carried out beyond their political boundaries comprise International business. Types of International business are Export – Import trade , Foreign direct investment , Licensing , Franchising and management contracts.
The main objectives of the international business are Sales expansion ,Resource acquisition and Risk minimization .
- Sales expansion : profit of the market can be increased by pursuing international sales.
- Resource acquisition : Lower costs , new and better products ,operating knowledge are the factors achieved by resource acquisition .
- Risk minimization : Risk factor can be reduced by smoothing sales ,from profits and preventing competitors to gain advantage.
- Intercultural communication, strategic management, international marketing, and the negotiation, implementation, evaluation and settlement of international business disputes.
- Dynamics of the systems and subsystems of the national and international business and trade environments, particularly understanding of the International Monetary System, the Foreign Exchange Market and the Capital Market.
- International Economic Environment, their relative power and influence, and how they influence and affect one another, at the national, regional and international levels.
- Transnational trends, political, social, economic, ideological and Legal forces. International business conducts various types of commercial transactions all over the world. These Commercial transactions include the transfer of technology, goods, services and managerial knowledge to other countries.
Topics for Assignment help :
- International Business in the International Political Economy ,Globalisation ,Country Differences
- Multi-national Corporations and their Role in the IPE ,MNE Strategy and Structure ,Global Organisation and Collaboration
- Global Marketing ,Case Study ,National Differences in Political Economy ,Differences in Culture
- Ethics in International Business ,The Global Trade and Investment Environment
- International Trade Theory ,The Political Economy of International Trade ,Foreign Direct Investment
- Global Monetary System ,Foreign Exchange Market ,International Monetary System
- Global Capital Market ,Strategy and Structure of International Business ,Organization of International Business
- Entry Strategy and Strategic Alliances ,International Business Operations
- Exporting, Importing, and Countertrade ,Global Production, Outsourcing, and Logistics
- Global Marketing and R & D ,Global Human Resource Management
- Accounting in the International Business ,Financial Management in the International Business
- Large scale operations: marketing and production operations are conducted in IB on a very large scale.
- International restrictions: IB faces many restrictions on the outflow and inflow of technology, goods and capital. Many countries have tariff barriers, trade blocks, foreign exchange restrictions and their governments do not allow IB to enter in their countries.
- Sensitive nature: IB is very sensitive in nature. Changes in the technology, economic policies, political environment make a huge impact on it.
- Too much competition: In the world market, IB has to face too much competition. This competition can be between equal or unequal partners. In this competition, MNCs and developed countries stay in the topmost position because they produce the best quality goods and services at reasonable prices.
IB is Dominated by MNC and developed countries: IB is dominated by developed countries and their MNC because they have the best technology, best financial resources, best R&D team, highly skilled managers and employees, so they produce the good quality services at affordable prices.
Economics integration: IB integrates the economics of many countries because it uses labour from one country, infrastructure from other country, finance from the other country. Same, it designs the products in one country, manufactures its parts in the different countries, and assembles the product in other country.
Profit to participating countries: all participating countries takes the benefits from the IB. Developed countries get the most benefits as compared to the developing countries. But developing countries also gets the benefits too, they get employment opportunities and rapid industrial development.
Important functions of International business:
- Collaborating with different governments
- Acts as an interface between MNC and nation state
- Utilize in different countries at different levels of economic development
- Work within the bound of investment systems and international trade.
- Interacts with the changes of foreign exchange
These functions of international business are performed by the IB professionals, which involves multinational manager, international marketing director, international policy advisor, business development director, economist, product manager, etc. The prevalence of IB has expanded during the last century by the development of technology and the liberalization of investment and trade. Major elements that has made an advancement in IB are as follows:
Comparative advantage is a major concept of IB which acts as an advantage for the participating countries. Comparative advantage means that a country has an advantage over the other countries regarding to the access to land, labor, capital and resources.
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