The business internationalise means a company’s production and business activity are not only confined to one country, but also integrate the different countries’ raw material and labour and technologies to
Today’s international market is a complex and dynamic environment with significant ongoing changes. When a company is looking to internationalise there are numerous factors that they must consider. It is crucial that the business has a vast knowledge of the business environment they are entering if they wish to succeed in their chosen market. It is also important to acknowledge the variation of markets across as
These happenings promote growth and help to build relationships with other countries. I see it as a way to help each other out. The reason why firms engage in International business is because they have a need that they cannot provide themselves. To fulfill these needs, firms use international business to compensate for low resources, to save and make more money, and to grow and expand their business. For example, Starbucks started as a stand-alone company, and then they expanded within in the U.S, and then eventually went international. Starbucks decision to do international business has expanded their brand; as a result, they have become the most recognizable coffee brand in the world. International business is important because it influences growth of a business; it creates partnerships with many different countries, and most likely increases profits. If a business wants to reach the maximum success, participating in international business is a great
Doing business internationally had become easier, nowadays business is acknowledged to be international and there is a general expectation that this will continue for the foreseeable future. Before a company makes a decision to expand into foreign markets, careful considerations must be given to some keys factors such as the political and economic environment, costs, benefits and risks. The economic environment can alter from one country to another, this is why they are often divided into three different categories. The more developed, the less developed and the emerging economies.
According to the journalist of New York Times, Thomas Friedman, international businesses are a set of interrelated processes rather than a single process and call it a “flattening process”. This means that countries like China and India are able to become contributors in international business par with the richer industrialized countries. It is a commercial transaction that crosses the borders of more than two nations. In everyday life, imports, goods or services that are purchased abroad and brought into a country surround us. The same can be said about exports, where countries abroad will be using your nation’s goods and services.
International business is taking different shades and is unavoidable today. This dynamic world is rapidly changing to the extent that is has been reduced to a "Global village".
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.
Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become
International business involves business activities that crosses borders ADDIN EN.CITE Brooks2004145(Brooks et al., 2004)1451456Brooks, I.Weatherston, J.Wilkinson, G.The international business environment2004New JerseyFinancial Times Prentice Hall9780273682479http://books.google.co.ke/books?id=rxzkqOPM9KUCBrooks20041451451456Brooks, I.Weatherston, J.Wilkinson, G.The international business environment2004New JerseyFinancial Times Prentice Hall9780273682479http://books.google.co.ke/books?id=rxzkqOPM9KUC( HYPERLINK l "_ENREF_2" o "Brooks, 2004 #145" Brooks et al., 2004). International business does not exclude small companies neither does it only occur when a company set up operational base ADDIN EN.CITE Shenkar2004144(Shenkar, 2004)14414417Shenkar, OdedOne More Time: International Business in a Global EconomyJournal of International Business StudiesJournal of International Business Studies161-1713522004Palgrave Macmillan Journals00472506http://www.jstor.org/stable/3875249( HYPERLINK l "_ENREF_7" o "Shenkar, 2004 #144" Shenkar, 2004). The key consideration for
Small businesses wishing to enter international markets have a number of strategies they can pursue, ranging from simply selling their products directly to foreign consumers to setting up operating locations in foreign countries. Each of these strategies offers their own benefits and disadvantages, and requires differing levels of preparation, and resource commitment. However, once an organization adopts the global attitude (p. 381), any of these options or combination of options provides an excellent platform for successful global business operations. There are nine commonly accepted methods to engage in global business, which include: creating a web presence, trade intermediaries, joint ventures,
International businesses have emerged in the recent past which are benefitting economies of countries, especially the emerging markets. The
Even though all businesses have the ability to earn profit, but those able to compete in a global market may earn better profits than those only focus in one country. I think that is why so many students choose to study international business. Because it many people are earning a lot money from it. International business mainly deals with business, trade and commerce on a global market. Because laws and cultures different from country to country, businesses have to prepare to deal with whatever issues may come up. With Internet communication, communicate between company are faster which cause global business competition became fiercer.
In today’s world there is a widespread trend of global expansion, the borders between markets have become more and more diffused. The number of firms expanding abroad is increasing and internationalization has become a necessity, not only to further a firm’s growth, but also to better handle international competition in its home market.
Any company who wants to expand globally and to increase their trade at international must have to face certain challenges related to certain issues such as Economic, political, cultural, and social. The main drivers for expanding the business at international level is increase in the overall growth opportunities rise in the profitability, access to material and human resources and finally innovation.