International Business Examples

738 Words3 Pages
Content

1. What is international business?
2. Example of international business - Sasa
3. Reason company engage in international business
1. Influence
2. Features
4. Example of local company engage in international business - Bonia
5. Pros and Cons of international business
6. Conclusion
7. References

What is Internation3al Business?

International Business is defined as the process of extending the commercial transactions between two or more country with an intention of targeting international customers. It also defined as the conduction of business transactions all around the world. Those business activities which involve cross border transactions of goods, services, resources with foreign country. For example, a international business
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Social and Cultural – Different country have different ways of life. For example, the flavor of PizzaHut in Malaysia is more spicy, but the flavor of PizzaHut in other countries is different from us. This is because they want to follow the culture of a country to attract more customer.

2. Economic – Make profit is the main objective of a company. This is because on a business mind set they want to gain more profit in other countries compare to local business.

FEATURES

1. Benefits to participating countries – International business open up the economic to participating countries. For example, they can gets more foreign capital, technology and more job opportunity. Even the country is rich or poor, they will also gets the benefits from it.

2. Large scale operation – In international business, production and marketing activities are conducted on a huge scale. So, a company will first sells its goods in their local country then only the surplus goods are
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Wider market - Once a company engage in international business, the customers of other country will also know the products of the company sells. This will open a wider market to other countries.

2. Economic growth of the business - The economic growth of the business will also increase. This is because the consumer market will increase after the company is engage in international business. The more the consumer, the more profit the company gain.
Cons

1. Entry requirements - Before a products is export to another country, we will need to require a entry requirement for entering a country for business. If the government of other country is reject the entry requirement of the company. The company is won’t allowed to sell their products in the country. Because it is an illegal business without the entry requirement.

2. Trade barriers - Trade barriers will reduce the interest the buying interest of the customer. Because the price of tariff will expand the price of the buyer. This will also taking away the motivation traders to trade into any international business.
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