11-09-2014, 12:34 PM
International Business
International Business.pptx (Size: 137.01 KB / Downloads: 13)
Introduction
International business comprises all commercial transactions that take place between two or more regions, countries and nations beyond their political boundaries.
It involve transactions of goods, services, resources between two or more nations and economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.
Definition
The exchange of goods and services among individuals and business in multiple countries
A specific entity such as a multinational corporation or international business company that engages in business among multiple countries
Features
Large scale operations : In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale.
Intergration of economies : International business integrates (combines) the economies of many countries. This is because it uses finance from one country, labour from another country, and infrastructure from another country.
Factors that influenced the growth of international business
Following factors are:-
Technology is expanding, especially in transportation and communications.
Government are removing international business restrictions.
institutions provide services to ease the conduct of international business.
Consumer want to know about foreign goods and services
Importance of International Business Education
Most companies are either international or compete with international companies.
Modes of operation may differ from those used domestically.
The best way of conducting business may differ by country.
An understanding helps you make better career decisions.
An understanding helps you decide what governmental policies to support.
Disadvantages
Import of harmful goodsForeign trade may lead to import of harmful goods like cigarettes, drugs etc. Which may run the health of the residents of the country. E.g. the people of China suffered greatly through opium imports.