Importance Of International Business

CHAPTER 1: INTRODUCTION

International business is really complex as it is not only the relationship between the intercultural human and economic relationships in the exchange of goods and services but it is also related to moral behavior of people which include in that relationship. Now, giant multinational corporations move the people, money and technologies across national borders in the blink of an eye. There are three categories of international business which are trade, licensing of intellectual property, and foreign direct investment. The existence of international business law has established the International Business law, IBL. It is known as a body of laws and regulations, which is derived from national and international sources that

For example, in terms of culture, language, currency and government control. There are some new challenges to international managers.

2.2.1 Distance and Logistics

This means managing the risks of shipping goods, getting paid, and doing business over great distances. Credit risk is called when in an export or import transaction which the risk that the buyer will fail to pay. This could mean finding special ways of assuring payment for goods being shipped to far-off countries.

2.2.2 Language and Cultural Differences

International business world is filled with successful people who are not fluent in a foreign language but they adapt by learning some basics in the language of a country they are visiting and being sensitive to social conventions, cultural issues and religious beliefs. If you are the buyer, the seller will find a way to speak your language but if you are the seller, you must find a way to communicate to your customers. Some positions require an even greater level of foreign language competency.

2.2.3 Obtaining Professional

It is important to companies that do international business. IBL has become more uniform between countries and regions of the world for several reasons. Firstly, the forces of free trade, economic integration, and of business have accelerated. Second, nations had to cooperate in their legal responses in global issues and technologies. For example, IBL has adjusted to keep pace when ecommerce and other technologies improve economic importance. Thirdly, intergovernmental organizations such as World Trade Organization (WTO) plays an important role by producing uniform codes on many business subjects, from food safety to contract law. Fourth, international tribunals for dispute resolution have caused the greatest change in IBL in the modern era. They issue written reports and render judgments affecting national laws that do not conform to international treaties or customary international law. Lastly, the roles of private industry organizations and trade associations have had an important role in encouraging the growth of uniform