International Business

INTERNATIONAL BUSINESS

By Abhinav Singh

If we were to delve into the past and look for one single reason that helped the world become a global village, there will be one answer every time: Business. From the ancient Indian trade to Cambodia, Indonesia, Egypt, Sri Lanka or for Greeks trading with Algiers, Egypt across seas. The world had already started to become a global village. Then of course we can’t forget the colonization era were trade was used as an entry point to countries and then slowly over taking the unorganized and technologically inferior country with better and efficient organized countries. But the point to note always remains the same that people are attracted to opportunities in foreign land and with foreign people.

Today the scenario is such that the whole world is a small community. News, faster methods of travelling and social networking sites have connected us like never before .Impact in one major global economy ends up having impact on most of the countries. Similarly, any technological advancement is slowly filtered down and is used by the whole world. But as we all know there are no free lunches .These advancements and benefits are available for a certain price which keeps the business rolling.

Let’s take an example how business works today. Apple iphones which are said to be ‘Made in China’ has screens imported from Taiwan, parts from Germany , USA and Japan , software’s from India , USA, and many other countries . Marketing from individual consumer markets. China does the assembling and packaging and result is the total expenditure from these things are less than 4% of total production cost of iphone for China. This is a true example of how international business works. The best of the countries in this field are put to use a great product.

Another example could be advent of outsourcing. Some countries have played a part in taking the business for companies 24*7 ,companies are now working all the time. And such work has...