A Literature Review on International Business

8061 WordsJul 7, 201133 Pages
A Literature Review on International Business Introduction Engaging in international business is one of the most important factors that a businessman must consider in order to gain more financial strength and stability for his company. One reason of investing to other countries provides a much larger opportunity for growth. But the success of a business also depends on choosing the right country to transact with, and having the ability to negotiate with that country in terms of their rules and policies, in a fairly considerable way. To be able to do this would guarantee both countries’ relationship to be beneficial. On the other hand, most developed countries trade and invest with developing countries because of less competition in…show more content…
The operation of domestic firm in overseas branches is one of the studies that should be taken to consideration in international business. One example of this is a Japanese firm can have its branch in other countries. Toyota of Philippines is considered as a domestic firm in an overseas branch. Farmer and Richman (1966) stated that this type of international business involves a management dimension in a foreign environment, and as such is one of the most complex and interesting types of international business studies. Firms cannot assume in this case that management problems will be identical to those faced at home. The import and export trade is also an important branch in business internationally for it involves the purchasing of products by a local firm, like Bangladesh from other local firms in foreign countries, e.g. Australia and sell them in Bangladesh, or an that manufacturer may sell his domestically produced products abroad. Farmer and Richman (1966) stressed that this area of study has long been of interest to economists, since the flows of international trade have considerable impact on the development and operations of the local economy. The comparative management in international business refers to
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