Introduction to International Business

From the video, Professor Zafar Bokhari has explained about the introduction of international business. Basically, international business means any business transactions between two or more countries. There are many differences between the business nowadays and the past years. Nowadays, in terms of business, each country nowadays has become dependants on other countries in various sectors and services. These are all due to the effects of globalization which shows there is the interdependance between the nation. Besides, globalization also has lead to the various level of international business such as international business itself, joint venture, international exporting and foreign country investment. International business itself is actually an issue under political economy. In fact, political economy can be separated into three major elements named as political system, economic system and legal system. Each country has its own government system or political system. Hence, in adopting international business, it must be considered by the government of each country. Examples of government system are democratic, autocratic and centralized system. The country like China which adopted centralized system has become one of the best international business country in the world. Under each of the government system, there are three basic part of economies. One of them is free-market economy such as United States where government intervenes minimally in business activities, and market forces of supply and demand are allowed to determine production and prices. Other than that, there is centralized economy such as China and Cuba where government determines production and prices based on forecasts of demand and desired levels of supply. The last part of economies is mixed economy where some activities are left to market forces while some for national and individual welfare reasons will be under government controlled. Majority of the country in the world especially Asian...