2. In international business, foreign exchange plays a major role. Free Trade occurs when a government does not attempt to influence, through quotas or duties, what its citizens can buy from another country or what they can produce and sell to another country. In global trade, it is impossible to avoid products on a huge scale. This is because it earns very high profits. Out of these, tourism forms one of the largest business scope in the international market. High foreign investments and high cost, GGSIPU ( NEW DELHI ) MANAGEMENT OF INTERNATIONAL BUSINESS – 3RD SEMESTER – The Streak, GGSIPU ( NEW DELHI ) MANAGEMENT OF INTERNATIONAL BUSINESS – 3RD SEMESTER – HOME | BBA & MBA NOTES, KMB302 International Business Management – HOME | MANAGEMENT NOTES. Accurate Information 2. Objectives of Export Promotion Bureau (EPB), An increasing interest in Business Values. Some demographic trends such as a contraction in birth rate decline in domestic demand, fully tapped market potential have adverse effects on some businesses. If you are an international player in the trade, you can easily take advantage of the cost of production. The importance are: 1. Market segmentation based on geographic segmentation, 5. International markets have more potential than domestic markets, 2. It includes not only international trade (i.e., export and import of goods and services) but also a wide variety of other ways in which the firms operate internationally. Often, it is a big advantage for Asian countries, since the foreign exchange rate is quite high in western countries like the USA or the UK. Availability of technology and managerial competence Information not only accurate but should be timely Debt Servicing: This means to grant loan for […] Merchandise means goods that are tangible, i.e., those that can be seen and touched. Political conditions When you get into import and export trading of services in a foreign land, this business is called “Invisible Trade”. Surely these reasons are highly important to opt for international business. Nature of International Business. When we talk of international business, e-commerce platforms like Amazon, Alibaba, eBay, and similar become a part of it. Spread the risk in business. To achieve higher rate of profits Liberalization of cross-border movements. 1. Liberalization, Privatization and Globalization (LPG), 11. Information not only accurate but should be timely, 3. It can also give you an opportunity to specialize in a different area to serve that market. Suppose your company has good global contacts, you don’t need to produce your item in your home country. 5. Licensing and franchising. Transportation and communications costs are more conducive for international operations Entry requirement 1. There are various ways or opportunities waiting for you in the global market that will help in earning massive profit from the trade. ADVERTISEMENTS: The following points highlight the three importance of International business. Lower Governmental barriers to the movement of goods, services, and resources enable Companies to take better advantage of international opportunities, Problems in International Business As you expand your business in the international market, it brings two countries close and increases their opportunities for growth. It also gets financial help from the government. This is a common business policy for bigshot companies like Coca Cola, where the products are sold by different distributors all across the globe. The size of the international business should be large 4. Accurate Information This is another term used for the global trade market or import-export business. MNCs are interested in no. Merchandise means goods that are tangible, i.e., those that can be seen and touched. How does it work? Increase in cross border business is due to falling trade barriers (WTO), decreasing costs in telecommunications and transportation; and freer capital markets, Reasons for Recent International Business Growth, 1. Exchange instability It involves cross-border transactions of goods and services between two or more countries. 4. 7. The domestic trade market is limited, it promotes international business, thus leading the economic growth of the country. Service exports and imports involve trade in intangibles. Limited home market International business is a term we use for global business expansion. 6. To increase the market share 7. Ifun Park Technology – Manufacturer of Animation Game Machines, Things You Know Before Visiting China – Mix with the Locals, Scope of International Business – The Importance You Need to Understand, Things Everyone Should Know Before Visiting Britain – A Brief Guide, Tips for Importing Goods from China to UK. Naturally, if you are into mass production for the global market, you will soon require a good number of people. This happens only when you have taken your business to the international market. of developing countries due to initially increasing in their income and population of the predictable 1 billion increases in world population during 2000 to 2015; only about 3% will be in the high-income countries, foreign markets, both developed and developing countries after ample opportunities for developing country firms also.

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