International Businesses

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What is International Business?

International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries. International business occurs in many different formats: The movement of goods from country to another (exporting, importing, trade) Contractual agreements that allow foreign firms to use products, services, and processes from other nations (licensing, franchising) The formation and operations of sales, manufacturing, research and development, and distribution facilities in foreign markets he study of international business involves understanding the effects that the above activities have on domestic and foreign markets, countries, governments, companies, and individuals. Successful international businesses recognize the diversity of the world marketplace and are able to cope with the uncertainties and risks of doing business in a continually changing global market. An international businesses strategy, organization, and/or functional decisions categorize it as: A multi-domestic company with independent subsidiaries that act as domestic firms; OR Global operations with integrated subsidiaries; OR A combination of the two The challenging aspect of international business, however, is that many firms combine aspects of both multi-domestic and global operations: Multi-domestic – A strategic business model that involves promoting products and services in various markets around the world and adapting the product/service to the cultural norms, taste preferences and religious customs of the various markets. Multinational – A business strategy that involves selling products and services in different foreign markets without changing the characteristics of the product/service to accommodate the cultural norms or customs of the various markets.
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