International Business

Evaluate the following statement: "The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who're going to work in a small firm".

Internationalization is the process by which firms increase their awareness of the influence of international activities on their future, and establish and conduct transactions with firms from other countries. Different countries will have unique characteristics in cultures, business styles, customer behaviors and so on, therefore the studying and understading of international business is essential. Howerver, unlike the statement: "The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who're going to work in a small firm", in my opinion, it brings advantages for both groups. There are various reasons for engaging in the internationalization process, such as the effects of technology, goverment trade policies liberalized, the development of institutions to support and facilitate International Business (IB) and the increasing of global competition; but it can be denied that going global contributes to the building of a strong brand as well as creates more profit and higher margins. Therefore, it is a long-term goal which all firms have to spend big efforts and resources.

Multinational enterprises (MNEs) are organizations that own or control production of goods or services in one or more countries other than their home country. Some example of successful MNEs are Nestle, Google or Mc Donald. In order to operate successfully, besides themselves, MNEs have to understand and manage other participants in their business which are host countries, home countries and international community. Due to the big size, complex structure and international operating activities, MNEs face with many difficulties. They can be the challenge of unfriendly business environment,...