Managing International Business

1. Define international business, clearly bringing out its features. What are the motivating factors for a firm to enter 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. 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 The conduct of international operations depends on companies' objectives and the means with which they carry them out. The operations affect and are affected by the physical and societal factors and the competitive environment.

Studying international business is important because:

* Most companies are either international or compete with international companies.

* Modes of operation may differ from those used domestically.

* The best way of conducting business may differ by country.

* An understanding helps you make better career decisions.

* An understanding helps you decide what governmental policies to support.

Home Country Features

When is headquarters location a source of competitive advantage / disadvantage?

* Company globalization – Launching pad

* Company history and culture

* Managers’ background

* Corporate governance

* Brand nationality

* Home market

* Political, legal, regulatory climate

The main purpose of business is to make money for the people who own the business. All other objectives are secondary to achieving this goal - it may sound heartless, but it is...