International Business Is A Term Used To Collectively Describe All Commercial Transactions

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.
[1]
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.[2]
A multinational enterprise (MNE) is a company that has a worldwide approach to markets

and production or one with operations in more than a country. An MNE is often called
multinational corporation (MNC) or transnational company (TNC). Well known MNCs
include fast foodcompanies such as McDonald's and Yum Brands, vehicle manufacturers
such as General Motors, Ford Motor Company and Toyota, consumer electronics
companies like Samsung, LG and Sony, and energy companies such
as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national
markets.
Areas of study within this topic include differences in legal systems, political

systems, economic policy, language, accounting standards, labor standards, living
standards, environmental standards, local culture, corporate culture, foreign exchange
market, tariffs, import and exportregulations, trade agreements, climate, education and
many more topics. Each of these factors requires significant changes in how individual
business units operate from one country to the next.
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.
Operations
 Objectives: sales expansion, resource acquisition, risk minimization
Means
 Modes: importing and exporting, tourism and transportation, licensing and franchisin
g, turnkey operations, management contracts, direct investment and portfolio
investments.
 Functions: marketing, global manufacturing and supply chain
management, accounting, finance, human resources
 Overlaying alternatives: choice of countries, organization and control mechanisms
Physical and societal factors
 Political policies and legal practices
 Cultural factors
 Economic forces
 Geographical influences
Competitive factors
 Major advantage in price, marketing, innovation, or other factors.

 Number and comparative capabilities of competitors
 Competitive differences by country
There has been growth in globalization in recent decades due to the following eight factors:
 Technology is expanding, especially in transportation and communications.

 Governments are removing international business restrictions.
 Institutions provide services to ease the conduct of international business.
 Consumers know about and want foreign goods and services.
 Competition has become more global.
 Political relationships have improved among some major economic powers.
 Countries cooperate more on transnational issues.
 Cross-national cooperation and agreements.
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.
Managers in international business must understand social science disciplines and how
they affect all functional business fields.
Tom Travis, the managing partner of Sandler, Travis & Rosenberg, PA. and international
trade and customs consultant, uses the Six Tenets when giving advice on how to globalize
one's business. The Six Tenets are as follows[3]:
1. Take advantage of trade agreements: think outside the border

 Familiarize yourself with preference programs and trade agreements.
 Read the fine print.
 Participate in the process.
 Seize opportunities when they arise.
2. Protect your brand at all costs
 You and your brand are inseparable.
 You must be vigilant in protecting your intellectual property both at home and
abroad.
 You must be vigilant in enforcing your IP rights.
 Protect your worldwide reputation by strict adherence to labor and human
rights standards.
3. Maintain high ethical standards
 Strong ethics translate into good business.
 Forge ethical strategic partnerships.
 Understand corporate accountability laws.
 Become involved with the international business self-regulation movement.
 Develop compliance protocols for import and export operations.
 Memorialize your company's code of ethics and compliance practices in
writing.
 Appoint a leader.
4. Stay secure in an insecure world
 Security requires transparency throughout the supply chain.
 Participate in trade-government partnerships.
 Make the most of new security measures.
 Secure your data.
 Keep your personnel secure.
5. Expect the Unexpected
 The unexpected will happen.
 Do your research now.
 Address your particular circumstances.
6. All global business is personal
 Go to the source.
 Keep communications open.
 Keep the home office operational.
 Fly the flag at your overseas locations.
 Relate to offshore associates on a personal level.
 Be available to overseas clients and customers 24/7.
According to C.K. Prahalad & S. Hart,2002, The fortune at the bottom of the pyramid,
Strategy & Business, 26: 54-67, and (2) S.Hart, 2005, Capitalism at the Crossroads
(p. 111), Philadelphia: Wharton School Publishing.
Top Tier: Per capita GDP/GNI > $20,000 Approximately one billion people
Second Tier: Per capita GDP/GNI $2,000-$20,000 Approximately one billion people
Base of the Pyramid Per capita GDP/GNI < $2,000 Approximately four billion people
[edit]Notes
1. ^ Daniels, J., Radebaugh, L., Sullivan, D. (2007). International Business: environment and operations,
11th edition. Prentice Hall. ISBN 0131869426
2. ^ Joshi, Rakesh Mohan, (2009) International Business, Oxford University Press, ISBN 0195689097
3. ^ Travis, T. (2007). Doing Business Anywhere: The Essential Guide to Going Global. Hoboken: John
Wiley&Sons. ISBN 978-0-471-97317-1
[edit]See also
 International Masters of Business Administration

 International trade
 Emerging Markets
[edit]External links
 US Chamber of Commerce The world’s largest business federation representing

more than three million businesses and organizations
 The International Trade Centre ITC is the joint agency of the World Trade
Organization and the United Nations
 The U.S. Government’s export promotion and finance portal A government resource
for U.S. exporters
 UK Trade & Investment A government resource for UK exporters
Definition of international business company (IBC)

In simple terms, an international business (offshore) company is a normal limited liability company which is use
by corporations and individuals through out the world to direct profits out of high tax countries into offshore juri
international financial centres thus taking advantage of low or zero tax and double tax treaties. The beneficial ow
business activities of the international (offshore) enterprise in general lie outside the country of its registration

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International business

is a term used to collectively describe all commercial transactions

A multinational enterprise (MNE) is a company that has a worldwide approach to markets

Areas of study within this topic include differences in legal systems, political

The conduct of international operations depends on companies' objectives and the means

 Major advantage in price, marketing, innovation, or other factors.

 Technology is expanding, especially in transportation and communications.

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

1. Take advantage of trade agreements: think outside the border

 International Masters of Business Administration

 US Chamber of Commerce The world’s largest business federation representing

Definition of international business company (IBC)

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