The opening up of the world economy through Liberalisation, privatization and globalization removed all trade barriers and made the buying and selling of goods and services from different countries very convenient and easy.
Since then transactions all over the world are done through International Business. Business across the border involves the exchange of physical as well as virtual products, capital resources, technologies, and logistics. It involves both the activities of export as well as import.
International Business is also known as Global marketing.
The following things are included in International business:
- Export & import of services as well as goods.
- Granting a license to authorize a group or a company (with an origin in a different country) to practice the manufacture, marketing & promotion of goods in foreign soil.
- A Joint venture can be started with a company nationally and internationally.
- Branches for production and distribution of goods can be set up in a hosting company
- Managerial services are provided to companies in host countries.
In International business, large-scale business operations are conducted. Huge scale production and sale activities are performed.
There is a basic thumb rule for export i.e. the goods that are surplus to the local market are only exported but the exception is the economically high-value products on the international markets.
Integration of economies of many countries is done through international business as finance might be used from one country and infrastructure from the other country.
Developed countries and their multinational corporations (MNCs) dominate International business recently. MNCs from USA, Europe, and Japan are fully dominating International business right now as they have large financial and other resources. Their research and development and science and technology are also the best in the world. High salaries result in highly skilled and well-qualified managers and workers. So, good quality goods and services are provided at lower prices and so the world market is captured and dominated. In this way, it is quite easy for them to have a greater share of the market
International business tends to benefit all the associated nations and their companies not only through the economic upliftment bit also through the exchange of ideas, logistics and support. Though rich countries enjoy maximum benefits. Developing countries get good technology for industrial development through Developed countries, more employment opportunities are also generated. Foreign exchange restrictions might disallow international trading in a few countries.
International business is of a highly sensitive nature. As the business environment is dynamic and contingent and we do not know what will happen next. Changes in the economic policies, laws of the country, government, socioeconomic policies. Technology, etc. have a huge impact on it.
The business environment is dynamic and there are social, legal and political changes in the dynamic business environment almost every day. A very detailed business marketing research or survey must be conducted to find out and study these changes in the day to day business environment. Such businesses must thus fix their business activities well and become very flexible to change with regard to the social, political and legal environment.