Essay on International Business

							Essay on International business
The business across the borders of the countries had been carried on
since times immemorial and it conducts the business transactions all
over the world. Those transactions include the transfer of goods,
services, technology, managerial knowledge and capital to other
countries. It involves export and imports. But, the business had been
limited to the international trade until the recent past. The post-world
war II period witnessed an unexpected expansion of national companies
into international or multinational companies because of certain
developments in the national and international environments of many
countries in the world. Soviet Union, East Germany and Several of East
European countries like Yugoslavia have transformed their socialistic
economies into capitalistic economies. Many countries like India have
liberalized their economies making more open for foreign trade.
Improvements in the communication and transportation also are changes
among others that facilitated increased international business in the
present times.

Since 1980s the global competition is becoming very important for the
world and national economics’ development. It begins to have a decisive
influence on the strategic planning and management not only in the
largest transnational corporations, but also in companies that have
traditionally relied upon the national market. Technology has also made
the running of a firm easier irrespective of where the head office is since
communication has been simplified. This has resulted in many investors
doing business in several countries at the same time which is referred to
as international business. Writing an international business essay
requires the writer to have understanding of what it takes to do business
on the international scale. Companies are involved in the processes
taking place in international business either directly or indirectly.
So, International Business is any business transaction which crosses
boarder of a country can be said as relating to international business.
Presently, many countries of the world have become more open by
integrating their economies with rest of the world. In recent years,
international trade volume has been increasing at a faster rate benefiting
both the trading firms and countries. While the ultimate motivation for
the firms to go international is to earn more profits, the increased
competition resulting from international trade rewards the consumer and
the economies in terms of enhanced standard of living and efficient
allocation of resources.

Private companies are engaged in such transactions for profit while govt.
undertakes them for sales investment and transportations.

Today international business comprises of a large and growing portion
of the world’s total business. It includes not only international trade and
foreign manufacturing but also the service industry such as tourism,
banking and mass communication etc.

International business also called global business the international
business is the process of focusing on the resources of the global and
objectives of the organizations on global business opportunities and
threats.

Some of the domestic companies which grow beyond their production
and/or domestic marketing capacious think of internationalizing their
operations. Those companies who decide to exploit the opportunities
outside the domestic country are the stage two companies. These
companies remain ethnocentric or domestic country oriented. These
companies believe that the practices adopted in domestic business, the
people and products of domestic business are superior to those of other
countries. The focus of these companies is domestic but extends the
wings to the foreign countries.
These companies select the strategy of locating the branch in the foreign
markets and extend the same domestic operations into foreign markets.
In other words, these companies extend the domestic product, domestic
price, promotion and other business practices to the foreign markets.

Normally internationalization process of most of the global companies
starts with this stage two processes. Most of the companies follow this
strategy due to limited resources and also to learn from the foreign
markets gradually before becoming a global company without much
risk.

The international company holds the marketing mix constant and
extends the operations to new countries. Thus the international company
extends the domestic country marketing mix and business model and
practices to foreign countries.