Chapter 2, Problem 1TAI1

Summary Introduction

To Determine:

The arguments that can be presented to counter student’s perception.

Introduction:

International business refers to the trading of goods, services, knowledge, and technology at the global level. International a business is also a study of the internationalization of multilateral business process at the global level.

Answer to Problem 1TAI1

Solution:

The arguments that can be presented to counter student’s perceptions are:

• We are living in an age of globalization, almost every company in the world large or small are interconnected. For example, Boeing, a company that manufactures airplanes has lakhs of vendor and subsidiary company in a different location of the world that provides spare parts to the company. So, one who thinks he is only going to work in his own country might get a chance to work or communicate with a company’s vendor that is located in another part of the world. This is why it is really important to know and understand the International Business process.
• Companies prefer a location with low labor cost, easy availability of raw material and location that enable access to the global market. To get these benefits in business sometimes company shifts their company headquarters to some other country, in this situation employees are asked to move to the location or lose your job. In order to retain their job, they must understand the cultural and business environment of the country they are migrating to. This is also a reason for studying International Business.
• It is possible to adapt the business environment and method of a country to other countries, but it is the people and their working style that makes the difference. Culture is the biggest factor here. So understanding the culture is important to the study of International Business.

Explanation of Solution

International business gives brief knowledge of how and why about understanding the different business culture, business environment, and interpersonal behavior of other countries. It helps to establish branches in other countries and multilateral partnership with companies and individuals that concerns business as well as multinational corporations. Study of International Business is the biggest reason behind the success of multinational corporations.