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Challenges in International Business - Coggle Diagram
Challenges in International Business
Today's world of business
International business differs from domestic business by degrees.
Most countries vary internally, causing companies to alter their business practices from one region to another.
some countries have much greater internal variation than do others.
Despite all the differences among regions within countries, this diversity is small when compared to the differences among countries.
What is international business
International business is all commercial transactions private and governmental between two or more countries.
international business refers to profit-related activities conducted across national boundaries.
The issues at the international business level are more complex than those at the domestic level.
International business transactions involve converting money into dif- ferent currencies.
why companies go international
Minimize competitive risk
They want to protect themselves against domestic companies that might gain advantages in foreign markets, and then use that advantage in the domestic market.
Acquire resources
Manufacturers and distributors seek out products, ser- vices, and components produced in foreign countries.
Expand sales
By reaching international markets, companies increase their sales faster than when they focus on a single market, that being the domestic one.
Diversify sources of sales and supplies.
In order to minimize fluctuations in sales and profits, many companies may look for foreign markets to take advantage of the business cycle differences among countries.
the participants in international business
Companies of all types and sizes, and in all types of industries, enter into international business transactions.
an international company is a business that engages directly in any form of international business activity such as exporting, importing, or international production.
Walmart, BP, Exxon, Royal Dutch, General Motors. This is the top 5 of the Top 50 companies of the Fortune Global 500
Why study international business
international business comprises a large and growing portion of the world’s total business