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Challenges in International Business - Coggle Diagram
Challenges in International
Business
Todays world of business
Countries vary internally making a business alter its business
Changes can be due to culture
Some cultures like stuff different
business operate by purchasing power
Differences are larger between countries
Businesses need to adjust to where they operate
Companies that do business internationally are subject to the laws of each country in which they operate
Political relationships between countries also influence what companies can do internationally
Businesses operate differently since they can operate in a place were people are rich or poor.
What is International Business
International business is all commercial transactions, private and governmental, between two or more countries
It can also be profit-related activities
conducted across national boundaries
International business is any firm that engages in international trade or investment
Why Do Companies Go International?
Companies engage in international business in order to
Minimize competitive risk
Acquire resources
Expand sales
Diversify sources of sales and supplies
The Participants in International Business
Small companies
Becoming increasingly active in international trade
and investment
Are vital role in their national economies through employment, new job creation, development of new products and services, and international operations
Multinational corporations
Generate a large number of jobs, greater investment, and significant tax revenue for the areas in which they operate
Giants and growing even more gigantic
The Global Perspective of International Business
Goods and services produced in one part of the world are increasingly available in all parts of the world
Why Study International Business
International business affects the activities of every consumer, every worker, company
and government all over the world
Each of us experiences the result of
dozens of international business
transactions every day