International Business Expansion Strategy
Ajami, Cool & Goddard (2006, p. xxvii) astutely observe that the intensity of international business activities of Multi-national Corporations (MNC) has witnessed an exponential rise over a period of two decades; and the sustained growth of economic inter-connections spanning across national borders has engulfed practically the whole range of diverse business domains, from financial markets to manufacturing and shipping (Ajami et al., p.4). In the contemporary, globalized business landscape, the organizations must at least take cognizance of the fact that global rivals can invade their native business bastions with better, competitive offerings and hence, they have to prepare themselves by resorting to formulating a counter-strategy, both defensive and offensive. So, what is the meaning of the term "International Business" (IB)? What activities does it entail? Cullen & Parboteeah (2010, p.7) have put forward a succinct, conceptual definition of the act of doing IB as: "A company engages in international business when it conducts any business functions beyond its domestic borders." Although, there are multiple ways in which an organization can expand its operations beyond the national boundaries, the simplest mode of executing functions internationally is that of manufacturing products in the home country and selling the same in other nations. Ajami et al. (2006, p.4) add to this description by stating that the participating entities can be in the form of companies, governmental agencies or a partnering configuration between the two. Further, IB can be classified into four rudimentary types - "foreign trade, trade in services, portfolio investments and direct investments". In this short essay, the following section will encompass a discussion and delineation of the process of business expansion into a new country, and it will capture various dimensions starting from macro-environment analysis to the...
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