International business summary. What is International Business 2022-10-28
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International business refers to the trade of goods, services, technology, capital, and/or knowledge across national borders and at a global or transnational scale. It involves cross-cultural communication and the management of a diverse workforce, as well as the adaptation to a wide range of legal, economic, and political systems.
The globalization of markets and the advancement of communication and transportation technologies have facilitated the growth of international business in recent decades. Multinational corporations (MNCs) play a significant role in this process, as they establish operations in various countries in order to take advantage of lower labor and production costs, access new markets, and diversify their risks.
However, international business also poses challenges and risks, such as cultural differences, language barriers, and varying legal and regulatory frameworks. The exchange rate fluctuations and the economic instability in certain countries can also affect the profitability of international operations.
To mitigate these risks, international businesses need to carefully assess the potential opportunities and challenges in the host country and develop strategies to adapt to the local market and cultural norms. This may involve partnering with local firms, adjusting their products or services to meet local preferences, and building strong relationships with local stakeholders.
International business also has a significant impact on the global economy and on the relations between countries. It can contribute to the transfer of technology and knowledge, the development of human capital, and the improvement of living standards in the host countries. However, it can also lead to imbalances in the distribution of wealth and to the exploitation of labor and resources.
The role of governments and international organizations in regulating international business and promoting sustainable and inclusive globalization is a contentious issue. Some argue for free trade and the minimal interference of governments in the market, while others advocate for the protection of domestic industries and the promotion of fair and equitable economic development.
In conclusion, international business plays a crucial role in the global economy and in the relations between countries. It brings opportunities for growth and development, but it also poses challenges and risks that need to be carefully managed. The balancing of these factors and the regulation of international business are important considerations in shaping the global economic order.
Chapter 2: International Business and Trade
Some companies try to have closer contact with managers in different countries or rotate managers from country to country in an attempt keep managers abreast of cultural issues. Foreign Exchange Traders — are employees in banks that fulfill orders such as buying and selling foreign currency for their employer. They tap into location advantages from multiple countries in order to form an efficient vertical value chain across borders. Previously, companies focused on the manufacturing side of the operation, but recent research showed that putting most attention on product design and planning of operations is the best way to increase the delivery speed and to reduce defective objects. The costs of sending people overseas has increased and therefore, host country or third country nationals who know the language and customs are more widely used.
Summary: Ethics and International Business Midterm (part 1)
An oil producing and refinery company will make strong use of both techniques. Being in a strong leadership position, the company has reached its maturity stage. Although international air freight has grown, it still accounts for less than 1% of the total volume of international shipments. Often the profits are relatively high and when production eventually exceeds local consumption, the company usually starts exporting. Evaluation of relative importance of international operations at present time and with this information estimating the future.
International Business: Executive Summary on Nokia Company Essay
Nestle is an example of a multi-domestic strategy. Personal selling is a direct form of promotion to persuade a consumer to a certain point of view. Costs of changing the product get higher when coming close to completion. Asian approach are much more based on religion or tradition, whereas European and North American approaches rely on philosophical arguments. In a competitive environment the company can force itself to improve and get more efficient and becoming thus more competitive.
Due to the advantage of economies of scale, the cost of production decreases. If the acceptance zones of two parties overlap, there is common ground for negotiation. Trade figures can be further divided into merchandise trade and services trade accounts; a country can run a surplus in both accounts, a deficit in both accounts, or a combination of the two. The European theories tend to focus on the ethical justification of capitalism. There are currently more than 200 national markets in the world, presenting a seemingly endless supply of international business opportunities.
The Growth of International Business The prevalence of international business has increased significantly during the last part of the twentieth century, thanks to the liberalization of trade and investment and the development of technology. We will now discuss both in more detail. Every year, many new products or services are introduced, or old ones are proved. For example, General Electric uses process mapping, a very detailed flowchart of every step in the production process of a particular product. Underneath is a table that gives an overview of which kind of firms are product oriented, which are service oriented or equally balanced. Economic cooperation is an important factor when it comes to national policies of the industrialized countries. Examples include programs for improving quantitative analysis or technical skills that can be used universally and programs that address cultural differences on a global scale.
International business article summary Free Essays
Some will pay for the residence overseas, others will give the expatriate an amount of money each month and some will rent or help selling the house back home. International Coordinator The international coordinator does not only rely on knowledge and resources from its home country as could be seen in the two archetypes above. Sometimes there are some alternative perspectives, which means that a relativism element is included. . Horizontal differentiation is how a company to specific tasks and divide those tasks and assign authority to accomplish company strategy.
It is then sold in any country which does not have the currency in which the bond has been issued. They act with knowledge and cultural sensitivity to shepherd deals and transactions that benefit both parties. There are a number of reasons for this. Neutral Culture — a culture in which emotions are not expressed freely e. We call them teleological as well based on the Greek word teleo which means goal. Political ideology and economic philosophy are almost always interrelated.
International Business SUMMARY (book and lecture notes)
In: Foreign Direct Investment, China and the World Economy. This theory tries to explain why corporation should take into account stakeholder interests. Their basic mission is public acceptance and profits will be set back into the country in the form of expansion and growth. The same account for shampoos and deodorant, because people may find it difficult differentiating the product from local offerings. .
International Business Strategy: Explanation and Examples
Cross cultural management is gaining in importante. Furthermore, the sales representative may then set up a separate export department to administer foreign sales and production. Most of the time the party gets a much more favorable bid when using extreme offers. However, in most cases there needs to be a local marketing strategy made. New methods of communication and the development of faster and more efficient transportation needs have enabled most countries to do their international business efficiently. The opening case study in the next section shows how and why China is investing in the continent of Africa.