International business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.
A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets.
Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next.
Physical and social factors of business
Political policies and legal practices
Cultural factors
Economic forces
Geographical influences
Competitive factors of business
Economical factor, Social factor
Risk of Business
Strategic
Operational risk
Political risk
Technological Risk
Environmental Risk
Economic Risk
Financial risk
Terrorism Risk
Planning risk
Price risk
Customer satisfaction risk
Mismanagement risks
Competitive risks
There has been growth in globalization in recent decades due to (at least) the following eight factors:
Technology is expanding, especially in transportation and communications.
Governments are removing international business restrictions.
Institutions provide services to ease the conduct of international business.
Consumers want to know about foreign goods and services.
Competition has become more global.
Political relationships have improved among some major economic powers.
Countries cooperate more on transnational issues.
Cross-national cooperation and agreements.
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.
Managers in international business must understand social science disciplines and how they affect all functional business fields.
Importance of language/cultural studies in International Business
A considerable advantage in International Business is gained through the knowledge and use of language. Advantages of being an International Businessperson who is fluent in the local language include the following:
Having the ability to directly communicate with employees and customers
Understanding the manner of speaking within business in the local area to improve overall productivity
Gaining respect of customers and employees from speaking with them in their native tongue
In many cases it is truly impossible to gain an understanding of a culture's buying habits without first taking the time to understand the culture. Examples of the benefit of understanding local culture include the following:
Being able to provide marketing techniques that are specifically tailored to the local market
Knowing how other businesses operate in the and what might or might not be social taboos
Understanding the time structure of an area. Some societies are more focused on "being on time" while others focus on doing business at "the right time"
Associate with other people whom do not know several languages.
Importance of studying International Business
The International Business standards focuses on the following:
raising awareness of the interrelatedness of one country's political policies and economic practices on another;
learning to improve international business relations through appropriate communication strategies;
understanding the global business environment—that is, the interconnectedness of cultural, political, legal, economic, and ethical systems;
exploring basic concepts underlying international finance, management, marketing, and trade relations; and
Identifying forms of business ownership and international business opportunities.
By focusing on these, students will gain a better understanding of Political economy. These are tools that would help future business people bridge the economical and political gap between countries.
A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets.
Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next.
Physical and social factors of business
Political policies and legal practices
Cultural factors
Economic forces
Geographical influences
Competitive factors of business
Economical factor, Social factor
Risk of Business
Strategic
Operational risk
Political risk
Technological Risk
Environmental Risk
Economic Risk
Financial risk
Terrorism Risk
Planning risk
Price risk
Customer satisfaction risk
Mismanagement risks
Competitive risks
There has been growth in globalization in recent decades due to (at least) the following eight factors:
Technology is expanding, especially in transportation and communications.
Governments are removing international business restrictions.
Institutions provide services to ease the conduct of international business.
Consumers want to know about foreign goods and services.
Competition has become more global.
Political relationships have improved among some major economic powers.
Countries cooperate more on transnational issues.
Cross-national cooperation and agreements.
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.
Managers in international business must understand social science disciplines and how they affect all functional business fields.
Importance of language/cultural studies in International Business
A considerable advantage in International Business is gained through the knowledge and use of language. Advantages of being an International Businessperson who is fluent in the local language include the following:
Having the ability to directly communicate with employees and customers
Understanding the manner of speaking within business in the local area to improve overall productivity
Gaining respect of customers and employees from speaking with them in their native tongue
In many cases it is truly impossible to gain an understanding of a culture's buying habits without first taking the time to understand the culture. Examples of the benefit of understanding local culture include the following:
Being able to provide marketing techniques that are specifically tailored to the local market
Knowing how other businesses operate in the and what might or might not be social taboos
Understanding the time structure of an area. Some societies are more focused on "being on time" while others focus on doing business at "the right time"
Associate with other people whom do not know several languages.
Importance of studying International Business
The International Business standards focuses on the following:
raising awareness of the interrelatedness of one country's political policies and economic practices on another;
learning to improve international business relations through appropriate communication strategies;
understanding the global business environment—that is, the interconnectedness of cultural, political, legal, economic, and ethical systems;
exploring basic concepts underlying international finance, management, marketing, and trade relations; and
Identifying forms of business ownership and international business opportunities.
By focusing on these, students will gain a better understanding of Political economy. These are tools that would help future business people bridge the economical and political gap between countries.
