Why Small Firms Having An Understanding Of The Characteristics Of International Business

The new directions and instruments of development of the international business are boldly shown. The international business is understood as such business activity, the primary coverage of which is the international economic relations in world economy. The international business can be divided into some main segments conditionally; global business, international (multilateral) business, foreign business in the host country and business abroad. According to Epping (2009), “The long-tail theory of commerce describes the ability of online businesses to use low distribution and inventory costs to make a profit out of selling small volumes of hard-to-find items to many customers.”

Introduction International business comprises a large and increasing portion of the world’s total trade (Johnson et al., 1994; Czinkota et al., 1995). The growth of international business has gained momentum faster than previously recorded, outstripping domestic business (Daniels and Radebaugh, 1995). The impact of such growth on many companies is that they are now “rushing to become

According to Ferrell and Hirt (1996), the small business ownership advantages are having an independence, it only requires small capital to start and maintain the business, it adopts easily to changing market demands, it can only focus to its customers and it has a reputation for its service and quality. High stress level for its owner is the disadvantage of small business ownership.

2. Course Text Book: Ball, Donald; Geringer, Michael; Minor, Michael; McNett, Jeanne. International Business. McGraw-Hill Higher Education, 13th edition, 2012. Print

Technological advancement has made globalization an inevitable factor that businesses of the future will need to consider in order to be successful. Increasingly, companies that have been solely domestic are branching out internationally for a wide variety of reasons, but in the end, it’s all about making profits from previously inaccessible market segments. The scaling is vast: international businesses can be as small as a stay at home mother that just created a Limited Liability Corporation to sell a unique product to the world, to an already established international businesses conglomerate with offices across the globe.

The world consists of many different cultures and nationalities. International business is thriving and companies need to be

Conducting business internationally can be a risky investment. Political risks, exchange rate risks, transaction risks, translation risks, and economic exposure are tendencies that international businesses have to deal with. Foreign business risks can leave a company in ruins if the business does not research and protect itself.

5 John, J. W, & Kenneth. L. W, (2012). International Business: The challenges of Gl

International business can be defined as the exchange of goods and services across borders through the use of negotiators. It can be thought of as the deliberate investment into another country with the gain of a commodity in the transaction. Through the fast paced train known as globalization, many companies have found international business transactions to be quite fruitful as they spread losses and create new opportunities for growing markets and raw materials. As mentioned before, international business transactions are made possible through negotiators; the focal firm, the government, distribution channel

Palmisano in 2006 clearly stated that multinational companies like IBM will have major effect on the global economy (Kanter, 2009). More flexibility is required as the requirement of every customer is different from others. This increases the demand for new technologies and makes the operations and functionality of the company to be more flexible. The trend in the market has changed in denoting the multinational companies as global companies. Need of the hour is one goal, one mission for all that is, company should always think globally when making plan about future.

If the small firm is actively involved in international trade as are most little firms in specific areas in Europe, case in point then worldwide business is an extremely important subject to study particularly if consolidated with cutting edge European dialects. One of the enormous brakes on the advancement of little firms is the way that a large portion of those that could stretch globally neglect to do so in light of the fact that they fail to offer any staff at administration level with the abilities to help them grow abroad.

To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental

The world offers significant business opportunities for every company, however, opportunities are accompanied by significant challenges for managers. Managing global operations across diverse cultures and markets represents a big challenge and opportunity for companies. To compete in the global market and be successful, companies must learn the strategies, policies, norms and technology necessary to conduct international business. The opportunities for global expansion are numerous, and attaining success is a matter of developing the right strategy to win local markets and its consumers.

‘The World Is Flat- the Globalization World in the Twenty First Century’ is a well written book by Thomas L. Friedman based on his personal experience, case studies, and etc.

Global business is especially complex due to the the globalization of markets. There are significant cultural differences between countries and regions, sometimes there are even multiple cultures in a single country. However, businesses must learn new innovative ways to transcend distance and culture because if they do not their corporations will never grow. Expanding to foreign countries can provide a business with millions of new customers. In order to increase business, businesses must globalize. Luckily enough, this is becoming easier since trade barriers are starting to dissolve and communication to most parts of the world today are basically instantaneous. There are many ways a company can decide to expand internationally. One of