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INTERNATIONAL BUSINESS MANAGEMENT - Coggle Diagram
INTERNATIONAL BUSINESS MANAGEMENT
What is Globalization?
It is the widening and deepening of interdependent relationships between people from different nations
Creates integrated markets, enabling cross border transactions and broadening business opportunities
It requires that adapt to the challenges of this globalized business, to cater different markets while they maintain their competitive advantage.
Phenomenon that has interconnected economies, markets, and cultures, impacting the way organizations conduct business across borders.
What is International Business?
Refers to firms performance of trade and investment activities across national borders.
It involves an exchange of goods, services, resources and information
It can be considered as a response to globalization
Companies need to adapt their strategies to fit global standards and needs.
Companies engage in cross-border activities to expand their markets, access resources, and leverage competitive advantages.
Why should we study internationational business?
Studying international business provide the knowledge and skills to navigate the challenges and opportunities presented by globalization
Professional Growth
Risk Management
Complexity Management
Innovation and Learning
Cultural Awareness
Competitive Advantage
Resource Acquisition
Access to New Markets
Globalization and Interconnectedness
Gives us the tools to be prepared for an environment on which cross-borders interactions are necessary to excel in business.
What affects economics activities between countries?
Understanding these factors is crucial for businesses and policymakers to effectively engage in international business and foster positive economic interactions between countries.
Globalization and Interconnectedness
Trade Policies and Agreements
Economic, social, cultural, political and legal conditions
Market demand
Resource availability
What are the differences between domestic and international business?
Domestic Business
When its economic transactions operate within the geographical boundaries of the country, and within its legal framework
Deals with similar cultural environment
Faces less trade barriers
Focuses on understanding a local customer rather than several different
Communicates in a single language and cultural context
International Business
When the economic transaction is conducted by various countries worldwide
Diverse cultural settings
Varying legal systems and regulations
Different currencies and deals with trade barriers, tariffs, and import/export regulations between countries
Requires more extensive market research
Faces political, economic and geopolitical instability
Deals with competition from local and global organizations in different markets
Why do companies go international?
Market Expansion and Growth
Diversification of Revenue Streams
Access to Resources
Markert saturation
Trade Liberalization and Agreements
Strategic Alliances and Partnerships
Branding and Reputation Enhancement