Cultural Diversity and International Business
CULTURAL DIVERSITY AND INTERNATIONAL BUSINESS
What is International Business?
International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more nations. It consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.
Importance of International Business:-
Every company is trying to expand its business by entering foreign markets. International business helps in the following ways:-
1. Helps as growth strategy: - Geographic expansion may be used as a business strategy. Even though companies may expand their business at home.
2. Helps in managing product life cycle: - every product has to pass through different stages of product life cycle-when the product reaches the last stages of life cycle in present market, it may get proper response at other markets.
3. Technology advantages: - some companies have outstanding technology advantages through which they enjoy core competency. This technology helps the company in capturing other markets.
4. New business opportunities: - business opportunities in overseas markets help in expansion of many companies. They might have reached a saturation point in domestic market.
5. Proper use of resources: -Sometimes industrial resources like labor, minerals etc. are available in a country but are not productively utilized.
6.
What is International Business?
International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more nations. It consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.
Importance of International Business:-
Every company is trying to expand its business by entering foreign markets. International business helps in the following ways:-
1. Helps as growth strategy: - Geographic expansion may be used as a business strategy. Even though companies may expand their business at home.
2. Helps in managing product life cycle: - every product has to pass through different stages of product life cycle-when the product reaches the last stages of life cycle in present market, it may get proper response at other markets.
3. Technology advantages: - some companies have outstanding technology advantages through which they enjoy core competency. This technology helps the company in capturing other markets.
4. New business opportunities: - business opportunities in overseas markets help in expansion of many companies. They might have reached a saturation point in domestic market.
5. Proper use of resources: -Sometimes industrial resources like labor, minerals etc. are available in a country but are not productively utilized.
6.