INTERNATIONAL BUSINESS

MEANING AND DEFINITION OF INTERNATIONAL BUSINESS

  Meaning of International Business

 IB refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations.

 According to  Robock & Simmond:- International business is defined as a field of management training that deals with the special features of business activities that cross national borders.

According to  Daniels & Radebaugh  :- International business is defined as all business transactions that involve two or more countries.

According to  - Grosse & Kojawa    International business is defined as transactions devised and carries out across international borders to satisfy corporations and individuals

International Business Features:

(a) Large scale operations,

(b) Dominated by Developed Countries and MNCs

(c)  Benefits to Participating Countries,

(d) A long term objective,

(e) Cultural and Social relationships are developed

(f) Importance of technology (On-Going),

(g) ,International Restrictions

(h) Special Role of Science and Technology

Conceptual understanding of INTERNATIONAL BUSINESS

.International Trade

International trade is a narrow term which involves exchange of goods or services across international borders or territories. E.g. Exports and imports of goods and services.

International Marketing

International marketing is a process of meeting the needs of global customers by creating and delivering and exchanging offerings that have values for global customer

1. Import and Export: Inflow and selling of goods from and to home country from outside.

2. Licencing: A standardized product with ownership rights can be distributed using licensing.

3. Franchising: Parent company gives right to other companies to carry on business in its name.

4. Outsourcing and Offshoring: It means giving out the contracts to international firms for certain business purpose.

5. JVs and Strategic Partnership: It is a agreement between two companies (one being an international company) to where the business has to be conducted.

6. Multinational Companies: The companies that are conducting business in more than one country.

7. Foreign Direct Investment (FDI): Investment made by an individual or a company located in one country to the business interest located in another foreign country.

You can also read :-BUDGETING CONTROL

ADVANTAGE OF INTERNATIONAL BUSINESS

- Optimum utilization of available resources

- Benefits to consumers

- Economies of large-scale production

- Stability in prices of products

- Earning valuable foreign currency

- Division of labor

- Increase in the standard of living of people

DISADVANTAGES OF INTERNATIONAL BUSINESS

- Rivalry among nations

- Exploitation

- Legal problems

- Publicity of undesirable fashions

- Language problems

- Shortage of goods in the exporting country

- Adverse effects on home industry