VIVEKANANDA EDUCATION SOCIETY INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH
SUBMITTED TO: PROF. VIJU NAVARE
GROUP NO: 7
NITESH NAGDEV 77
SANJAY RAWLANI 101 PAYAL VANVARI
Q.1) what is International Business? State & explain the forces that are helping internationalization of business. Can it be said that international business has not only encouraged global growth and prosperity but has also resulted in creation of international financial instability. Explain with examples? 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 regions, countries and nations beyond their political boundary. 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. International Business is the study of business and management across international borders. It encompasses aspects such as globalisation and the impacts of the global environment on organisations, trade and trade policy, foreign direct investment, strategies of international firms, strategic alliances and exporting, and international management, including cross-cultural and international human resource management. It has become essential for business managers, policy makers and researchers involved in the global environment to understand international business. In the 21st century, goods, services and knowledge flow across country borders much more easily than in the past. For business, the implications of these flows and the increased mobility of human resources are profound. Long-term survival of businesses, and indeed entire economies, depend on how well these forces are understood and leveraged.
Forces helping internationalization of business:
1. Expansion of Technology. Air travel, the internet, e-mail, e-commerce, direct dial international phone calls, fax, and other technologies have brought down the cost and increased the efficiency of doing business internationally.
2. Liberalization of Cross-Border Movements. The World Trade Organization (WTO, discussed in Chapter 6) and other international trade agreements have reduced barriers to the movement of goods and services across national boundaries.
3. Development of Supporting Services. International banking, international document delivery, and other services have tremendously simplified the conduct of international business.
4. Increase in Global Competition. It is becoming increasingly important that firms have international operations in order to be able to shift production...
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