International business is a term used to collectively describe all commercial transactions that take place between two or more nations. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. It can be either the buying (importing) or selling (exporting) of goods or services on a global basis. In the achievement of the strategic objectives of a self-reliant and dynamic economy, the government considers a substantial expansion in export earnings to be of great importance. Exports enable the country to pay for critical imports, new technological inputs and setup the pace of economic development.
International trade necessarily requires interaction with governmental agencies, and most all governments wish to expand their country’s role in international trade, entrepreneurs can look to governments themselves for a great deal of information. There are some non-governmental resources to expand the knowledge of entrepreneurs about international trade •The federation of international trade associations provides portals to trade leads, market research, a global trade shop and even a job bank. •Search engines such as google or yahoo provide a huge database of information that will require selectivity to retrieve the most helpful information. •The large network of international trade market places, providing trade leads and new business contacts.
INTERNATIONAL BUSINESS SCENE
For an Indian entrepreneur to go to international business is not easy, they has to cross many hurdles. India is a small player in overall global exports. Exports from India value wise are less than 0.8%. Exports from India since last two years are growing by 20% despite low growths in agriculture and industry. The external factors that affect lower growth rates are: •Recessionary conditions in USA.
•Low or no growth in Japan.
•Distributing conditions in west Asia.
•Progressive strengthening of rupee against dollar.
There are constraints which an entrepreneur has to face. They are: • Price competition in the global market due to various reasons. •Indian entrepreneur has to meet the challenges of continuous deficiencies on the infrastructural front especially lack of regular quality power, lack of cheap power supply, inadequate physical infrastructural such as roads and efficiently run ports. •High cost of funds and high service charge of banks. Though credit rates are coming down for the competing countries, the export credit is still costly. •Appreciating Indian rupee.
India is on high export growth trajectory making many entrepreneurs to look for global markets. Government of India is giving boost to export from time to time in its exim policies. Particular focus is on agro exports. The high growths of exports are expected by the agricultural and agri-products sector and growing service. The export of services is growing where Indian entrepreneurial talent is seen in action. Thus, country has large reservoir of entrepreneurial talent and efforts are under way to go international. During the reforms period India has opened up with its policies to help liberalization, privatization and globalization. Every effort is made by governments and industry to go to global markets. In recent past the result of growing economy is seen due to these steps. They are: •Indian global trade is increasing at 20% growth since last 3 years. •Growth in GDP and per capita incomes.
•The percentage of Indian trade in global level is 0.8% is low. •In the new knowledge industries like IT (Information Technology), BPO (Business Process Outsourcing), R&D (Research & Development) and BT (biotechnology) the progress of India is impressive at global level. •Lots of Indian entrepreneurs are taking up lead in establishing knowledge based industries in various parts of globe. •Indian entrepreneurs are developing niche products.
•There is positive outlook...