What is International business all topics

 

INTRODUCTION TO

INTERNATIONAL BUSINESS

•           Introduction to International Business

•           Nature & Scope & Feature of International Business

•           Importance of International Business

•           Approaches of International Business

CONTENTS

•          

Problems in International Business

•           Entry Strategy 

•           Advantages & Disadvantages of International Business

•           Reasons for recent International Business Growth

•           International organizations

•           The exchange of Goods & Services, Resources, Knowledge & Skills among individuals & businesses in two or more countries.

•            Transactions that are carried out across national borders to satisfy the objective of individuals & organizations.

•           All commercial transactions that take place between two or more countries.

What is International Business?

1.         

Private & Government

2.          Sales

3.          Investments

4.          Logistics

5.          Transportation 

 

 

•           Accurate information & timely

•           The size of the international business

Nature

•          

Market segmentation

•           International markets have more potential than domestic markets

•           International Marketing 

Scope

•          

International Finance and Investments

•           Foreign Exchange 

•           Global HR 

•           Large scale operations

•           Integration of economics 

•           Dominated by developed countries and MNCs

Features

•          

Benefits to participating countries 

•           Keen competition

•           Special role of science and technology

•           International restrictions

1.             Earn foreign exchange 

2.             Optimum utilization of resources

3.             Achieve its objectives

Importance

4.            

To spread business risks 

5.             Improve organization’s efficiency 

6.             Get benefits from Government 

7.             Expand and diversify 

8.             Increase competitive capacity 

Approaches of IB

Ethnocentric approach

IB Approaches

 

• Under this approach, target market is own country, excessive production will export due to change in customer taste and preferences. 

Polycentric approach 

IB Approaches

 

• Under this approach, the companies customizes the marketing mix to meet the taste, performance and needs of the customers of each international market.

Regiocentric approach

 

IB Approaches

•          

Under this approach, the company operating successfully in a foreign country thinks of exporting other neighboring countries of the host country.

•           At the stage, the concerned subsidiary considers the regional environment (such as laws, culture, policies, etc.) for formulating the policies & strategies.

Geocentric approach

 

IB Approaches

•          

Under this approach, the company analyses the tastes, preferences, and needs of the customers in all foreign markets and then adopts a standardized marketing mix for all the foreign markets.

•           Political factors

•           High foreign investments and high cost

•           Exchange instability

Problems

•          

Entry requirements 

•           Tariffs, quota, etc.

•           Corruption and bureaucracy 

•           Technological policy

•           Quality Management 

Entry Strategy

•          
Arrangement in which a firm buys or establishes tangible assets

10. Foreign • In another country

Direct Investments

•         Trough direct investment 

•         By buying company stock in capital markets 

•         Faster growth 

•         Access to cheaper inputs 

Advantages

•        

Increased quality and efficiency 

•         New market opportunities 

•         Diversification 

•         Increased costs 

Disadvantages

•        

Foreign regulations and standards 

•         Delays in payments 

•         Complex organizational structure 

1.             Expansion of technology

2.             Business is becoming more global because 

•                  Transportation is quicker 

•                  Communications enable control from afar

Reason for the recent growth in IB

•                 

Transportation & communications costs are more conductive for international operations 

3.    Liberalization of cross-border movements 

•     Lower Government barriers to the movement of goods & services and resources enable Companies to take better advantage of international opportunities  

International Organizations

• An international organization formed to reduce or eliminate tariffs and another barrier to international trade

International Monetary Fund (IMF)

•    An international financial organization that lends money to countries in conducting international trade  

•    An international financial organization that lends money to underdeveloped and developing countries for development    

International Organizations

Economic Communities

•    World Trade Organisations (WTO)

•    European Community (EC)

•    North American Free Trade Agreement (NAFTA)

•    Asian Free Trade Agreement (AFTA

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