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.