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Challenges in International Business - Coggle Diagram
Challenges in International
Business
INTERNATIONAL BUSINESS LAWS
Companies that do business internationally are subject to the laws of each country in which they operate.
For example, Blockbuster Video closed down its German operations because of the strict laws prohibiting retail establishments from being open Saturday afternoons, Sundays, and all evenings.
These limitations reduced the company’s ability to generate sufficient revenue through impulse rentals from people who do not plan well ahead to view a videotape.
WHAT IS INTERNATIONAL BUSINESS?
International business is all commercial transactions private and governmental between two or more countries.
These transactions include
-Sales
-Investments
-Transportation
Many companies also compete against products and services that come from abroad.
A company operating in the international business field will engage in modes of business, such as exporting and importing.
This differ from those it is accustomed to on a domestic level.
WHY DO COMPANIES GO INTERNATIONAL?
Companies engage in international business in order to be able to
-Minimize competitive risk
-Acquire resource
-Expand sales
-Diversify sources of sales and supplies
Minimize Competitive Risk. Many companies enter into international business for defensive reasons.
They want to protect themselves against domestic companies that might gain advantages in foreign markets, and then use that advantage in the domestic market.
THE PARTICIPANTS IN INTERNATIONAL BUSINESS
Companies of all types and sizes, and in all types of industries, enter into international business transactions.
Manufacturing companies, service companies, and retail companies all search for customers outside their countries.
International company is a business that engages directly in any form of international business activity such as exporting, importing, or international production.
No matter what the nature of the international business transactions, there are different types of international companies