International Business – Meaning, Definition, History, Scope and Features

International Business – Meaning, Definition, History, Scope and Features

1. International Business – Meaning, Definition, History, Scope and Features Presented by, Alice Mary 2 nd M, Com Under the Guidance of Miss Ramya S. K. Faculty Member, Dept. of PG Studies in Commerce G. F. G. C. W. Holenarsipura

2. Introduction to international business : Business Activities done across national borders is international business is the purchasing and selling of the goods, commodities and service outside its national borders such trade modes might be owned by the state or privately owned organization. In which the organization explores trade opportunities outside its domestic national borders to extend their own particular business activities For example : Manufacturing, mining, construction, agriculture, banking, insurance, health, education, transportation, communication and so on.

3. Meaning of international business : International business refers to the exchange of goods and services between two parties of different countries. International business may be understood as those business transactions involve crossing of national boundaries. Definition of international business : The world has become a “global village the business has expanded and is know longer restricted to the physical boundaries of the Country”. In addition to technological developments the World Trade organization (WTO) infrastructure and communication efforts implemented by governments of various countries are also one of the main reasons for increasing trade exchange between countries.

4. History of international business : The integration and growth of economics and societies was the main reason for the first phase of international business and globalization. 19 th century :the border concept of the integration of economics and societies evolved 1870: began first phase of globalisation . 1913: increased trade barriers to protect domestic production 1919 World War 1 :end of the first phase of globalisation , the industrial reduction in the UK, Germany and the USA. 1995: GATT was replaced by WTO on Jan 1 st 1995 trade liberalization. International business is transactions that are carried out across national borders to fulfill the objectives of individual companies and organization the different modes by which international business is being done are import and export trade, foreign direct investment, licensing and management contracts.

5. Benefits of international business : It encourages a Nation to obtain foreign exchange It prompts specialization of a country in the production Also, it helps a country in enhancing it’s developments prospects and further more make opportunity for employment International business makes it comfortable.

6. Scope international business : International trade : international business includes the export and import of goods Service export and import : it is also known as in variable commerce it’s Includes tourism, transportation, telecommunication, banking, warehousing, distribution and advertising. License and franchises : A license is a contracts as arrangement that allows one company access to its patents, copyrights, Trade marks or technologies to another foreign company at a rate called royalties Pepsi and Coca Cola are produced and sold world wide under a licensing system. For example MC Donald’s operators fast food restaurant around the world through its franchises system Foreign investment : it involves investing funds a board in exchange for economic profitability there are two types of fforeign investment . Foreign direct investment Port folio investment

7. Features of international business : It includes two countries :international business is only possible when there are transactions in different countries Use of currencies : each countries has its own different currency this causes currency exchange problems as foreign currencies are used to carry out transactions Legal obligations : each country has its own laws regarding foreign trade. Which must be complied with more over, in the case of international transactions there is more government intervention. High risk : international companies face great risks due to long distance, the risk of fleutuation between the two currencies and the risk obsulances Heavy document : subject to a series of steps many documents need to completed and sent to the other party Time consumption : The time interval from sending and receiving goods to payment is longer than that of domestic transactions.

8. Conclusion : The process of location of foreign operation in a new country must be carried out carefully. Firm which aim to invest in foreign country need to make analysis of capita development, economic, political, culture, and legal stability not to make analysis on the risk involved in country to conclude, the global market is a market where a business can sale their products and services. Gathering of selling in local country, you can sell a whole global level there are more customers in comparison to local level, so profit becomes more.

9. Basic introduction about international Business : Reference : Retrieved from : https ://www. Toppr. Com>in…. https ://www. Management study guide. Com>…. https ://www. Ukessys. Com >essays. https ://www. Easy management notes. Com >… Date :24/11/2021