What do you understand by International Business?
Explain the terminology of International Business.
Answer: International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports. International Business is also known, called or referred as a Global Business or an International Marketing.
International business is a relatively new discipline and it’s extremely dynamic. Actually international business activities occur across national boundary.
a. International business: International business occurs across national border.
b. Foreign business: Foreign business is similar to international business. It denotes domestic operation within a foreign country. Such as Indian company business in Bangladesh.
c. Multinational enterprise: The Company which operates businesses in different countries across the world is called multinational business. It has a powerful headquarters which is located in parent company.
- Try to achieve economies of scale. (Through global interaction and function).
- Being high responsive to different local environment.
It has own subsidiary in each country such as;
Uniliver is a multinational company but British Dutch is Parents Company.
Multi domesticcompany, multicultural company and multinational company are same.
d. Multi-domestic company: Multi-domestic or multinational or MNC is an organization with multi country affiants each of which formulates its own business strategy based on perceive market differences.
e. Global company: The world ‘Global’ is used to become world or international. It’s a common nature of market and marketing strategy in the all over the world. So, Global Company is an organization that attempts to standardize and integrate operation world in full functional area. So, global word is used as:
- Search the world for market opportunities.
- Thread from competitors.
- Source of products, raw-materials, and financing.
- Seek to maintain in present in key market in the world.
- Look similarities not difference among the markets.
f. Mini national: Mini nationals are small and medium size firms of a special kind are entering world market in grouping numbers. Not just by exporting but by opening factories, resources facilities and sales offices overseas in the manner of the large multinational and global-enterprise. They are special expertise sort of the operations like financing, marketing, engineering etc.
g. International company: International Company includes both multination and global company. But its activities control by headquarters.
h. Transnational company: Transnational are not same as multinational or global. Different companies coming from different countries and form a new form of companies by dividing share.
Unilever= Margari Uni + Lever brothers.
Shell= British petroleum + Dutch
ABD= ASEA (Swedish) + Brown-Sovari (Swish).