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Challenges in International Business - Coggle Diagram
Challenges in International
Business
What is international business
International business is all commercial transactions—private and governmental—between
two or more countries.
international business comprises a large and growing portion of the world’s total business
Another definition of “international business” refers to profit-related
activities conducted across national boundaries.
An international business is any firm that engages in international trade or investment.
All a firm has to do is export or import products from other
countries.
Why companies go international
Minimize competitive risk
• Acquire resources
• Expand sales
• Diversify sources of sales and supplies
The participants in international business
In current global context where individuals are more connected to one another than ever before, participants in international commerce range from tiny firms to multinational corporations.
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
Globalization can be incredibly empowering and incredibly coercive
Globalization has dangers and an ugly dark side. But it can also bring
tremendous opportunities and benefits.
Ecological campaigners say corporations are disregarding the environment in the stampede for megaprofits and marketplace supremacy.
globalization of markets and the globalization of production
Why study international business
We study international business to improve our awareness of global events that affect us every day and to help us become more informed consumers.
Today’s world of business
International business differs from domestic business by degrees
laws, cultures, and economic conditions differ within countries, such differences are usually less marked than those among countries.
And because income levels vary, purchasing power is higher in
some areas than in others
Geographic and economic barriers in some countries can inhibit people’s
movements from one region to another, thus limiting their personal interactions
Legal–Political Environment
Economic Environment.
Cultural Environment
Political relationships between countries also influence what companies
can do internationally
Opening Case
The analysis shows clearly that the problem lies in the use of outdated methods and resistance to certain innovative aspects of the project
Question: What do you think really happened in this case? What is Mrs. Santos’s position in the company? What issues of international business are found in this case? What do you think the consultant should have done?