At the point when an organization has an international marketing presence, the potential for all way of new business connections emerges. New sellers may see the advertising and ask about offering your item. New suppliers may reach you with expectations of giving the raw materials, transporting, packaging or different essentials. These new suppliers may have the capacity to spare you cash therefore raising profits. International marketing can help open up a bigger business than your organization would have the capacity to reach generally.
Internationalization in networks 2.1.1. Internationalization Internationalization is broadly defined as the process of geographical expansion in international economic operations across national country’s borders (Manolova et al., 2010; Ruzzier et al., 2006; Amal and Rocha Freitag Filho, 2010). According to Ruzzier et al., (2006), a firm operates in international business when a firm sells or buys its products in foreign countries, or cooperates with a foreign counterpart in a certain industry.
International trade is also knows as a globe trade which give the country opportunity to expands their markets for both good and services that otherwise may not have been available in other countries. This type of trade also give advantages for world to rise the economy in term of prices, supply and customer demands, affect and are affected by global events. All of the good and services can be found on international market. International trade will involve two types of process which be export and import. Export is a function of international trade in which the goods produced in a country will be sent to another country for future sale or trade.
What are the benefits that the company will gain from expanding its operations into the international market? What is the meaning and concept of International Business? Why the business organizations decide to go international? What is International Business
Going international will certainly grow your business. The more the company grows the more valuable it becomes. You can see evidence of this if you watch the stock prices of a company that starts small and grows over time. The development of international relations can also open doors to do more business in other countries. There are a few drawbacks to international trade and
The people, their skills – inherent and learnt, availability of raw material, climatic conditions give countries an advantage over others. This is another reason that necessitates Foreign Trade. Economic Development There is often diversity in the economic growth rate of different countries. While some countries are developed, some are underdeveloped and some others are developing. Underdeveloped and developing countries depend on for capital which further increases the need for Foreign Trade.
On its placements and operations in the other countries, the MNCs will implement various innovative and complex business operations, especially on their profits distribution. The MNCs’ interest in the host country can be defined through the domestic subsidiary’s share of the company’s operation. Some MNCs such as IBM, Coca-Cola, Nestle, Ford, and the others have access to several production and markets so that they can easily expand their market base. III. Conclusion IV.
Political environment, regulatory and legal systems is one of the essential aspects to consider with when a firm decided to enter an international market. Root (1994) said that the political environment of the target country is able to affect a marketer to make a decision on the entry mode, especially based on the government policies and regulations regarding to the international business. While Globerman and Shapiro (2003) stated that the legal system can play a vital role to encourage the marketer to expand their market into foreign countries. These two statements can prove that political environment and legal system are vital importance for international business. The political and legal system is varied from one country to another country.
From globalization it has opened up more markets, which helps American companies sell their products worldwide. If markets around the world did not exist the U.S. would not be able to have the interaction with other countries in order to gain product but also sell theirs as well. Not only have markets around the world opened up but there has been a rise of multinational corporations which has helped increase their influence on the world. Having the corporations worldwide aids the American corporations in selling their products outside of the country and keeps the United States “on top” or near the top economically. Globalization is most importantly the increase of interactions between different people, states, and countries.
They know the way of consolidating competitive advantages is continuing higher value chain of their companies. They are good at accessing different resources and strengths by locating different activities in different area. For example, cross-border M&A is a way to help MNEs to access more benefit. They can be complementary resources by M&A with other companies and can be integrated with their existing build competitive advantage. Due to transportation become easier in globalization, outsourcing in MNEs are more frequent in recent years.