International Business

According to Business Dictionary, International Business is

• " The economic system of exchange of goods and services, conducted between individuals and businesses in multiple countries", and
• " The specific entities such as multinational corporations (MNCs) or international business companies (IBCs) which engage in business between multiple countries".

International Business is also a term used collectively to describe all commercial transactions, both private and governmental, sales, investments, transportation, and logistics that take place between two or more countries.

All cross border activities between nations involving transactions of goods, services, and resources indicate international business.  Such transactions are undertaken by private companies for profit and by governments for profit and for political reasons.

Economic transactions include capital, people, skills, international production of goods and services like finance, banking, insurance, construction, etc.

An MNC or multinational company has worldwide reach in markets, or production and operation in more than one country.  Some examples are Ford Motors, General Motors, Toyota, Samsung, LG, Sony and many others in a variety of industries.  The companies` operations across the globe depend upon any number of factors such as legal and political systems, economic policy in a country, language, accounting, labor and living standards, environment, local and corporate culture, foreign exchange markets, tariffs, import and export regulations, agreements and so on.

International business depends on a company`s objectives and the various means with which these are carried on:  These include operations, means, functions, overlaying alternatives, physical and societal factors, economic forces, geographical influences and competitive factors

Also a number of factors have helped globalization in recent years, and it is important for managers to study international business in depth to understand each government in a foreign country, its markets, culture and environment to formulate plans and strategies to do well internationally.

Questions:

• Define International Business.
• What are the various factors a company has to face in a foreign country?