The Advantages And Benefits Of International Business

INTRODUCTION

As we know, a few generations before this it took months to ship products to a market in another country. This process is very difficult undertaking and only the huge trading companies were courage enough and able to take the risk. Then, developments in transportation technology made it possible to the people and products to move much more quickly, and it was the first push towards globalization began. Nowadays, the information technology which is especially Internet has made the world move even further. Because of that, a business might have partners and employees from other country in the world and consumers can get their products from those locations in a matter of days. It’s really save time and money.

INTERNATIONAL BUSINESS

One of the definitions is, business is a form of the activities carried out with an objective of making profits for the benefits of the people on whose behalf the activities carried out. According to Wikipedia, international business consists of all the commercial transaction that include the private and governmental, sales, investments logistic and also transportation. International business also have broader meaning which is can serve the people better in both side personally and professionally in the world that already moved ahead and beyond the regular industrial production. When there are any productions or distribution of product or services across country borders it’s also called as international business. The exchange that involved in international business not only focuses on the money or physical goods; it also can be from other resources such as people or labor, intellectual property and contractual assets or liabilities. The example of intellectual property that can be exchange in the international market is patents, copyrights, trademarks, and data. International business can be considered as the vital ingredient in strategic management and entrepreneurship. It’s very important for the organizations to know the international trends to success in the international market

The first feature of international business is large scale operations. As we know in the international business all the operations will be conducted on a very huge scale. The production and marketing activities also been done on a large scale. It begins by selling its product in the local market and then the surplus goods are exported. The second characteristic is integration of economies. The international business combines the economies of many of the countries in the world. This is because of international business usually will use finance from one country, labour from another country and infrastructure from another country. Sometimes thy also design the product or goods in one country, produces its parts in other different countries and gather the product in another country. Thirdly, international business has been dominated by the developed countries and MNCs. MNCs are the multinational corporations of the developed countries. The country that dominated and fully controls the foreign trade is USA, Europe and Japan. They have many advantages such as large financial, other resources, best technology, research and development, skilled employees and managers. That was the factors that helping them to capture and dominate the world