Question

Now that you have nearly completed a course in International Business, I'd like you to explain what YOU feel the most useful part of the course was and how you feel you will be able to apply the course material in future classes or in your careers. Please be detailed in your responses, and while I would like for you to respond to other students' posts, it is not required.

Answer 1

International business takes place in many different formats: movement of goods from country to country (exporting, importing, trading) Contractual agreements allowing foreign companies to use products, services and processes from other countries (licensing, franchising) Training and marketing, manufacturing, research and development and distribution facilities in foreign markets International business research involves understanding the impact of the above practices on domestic and foreign markets, economies, governments, enterprises, and individuals. Successful international corporations understand the world marketplace's complexity and are able to cope with the challenges and threats of doing business in a continually changing global marketplace. A policy, structure and/or operational international business decisions categorize it as: a multi-domestic company with separate subsidiaries operating as domestic firms; or a combination of the two;

However, the challenging aspect of international business is that many companies combine aspects of multi-domestic and global operations: multi-domestic–a strategic business model that involves promoting products and services in different markets around the world and adapting the product / service to the cultural norms, taste preferences and religious customs of the different markets. Multinational–A business strategy involving the selling of products and services in various foreign markets without altering the product / service characteristics to satisfy the cultural norms or customs of the different markets.

Participation in international business makes it possible for countries to benefit from their comparative advantage. The definition of comparative advantage implies that in terms of access to cheaper land, energy, labor and capital, a country has an advantage over other nations. In other words, a country is going to export those products or services that use abundant production factors. Furthermore, firms with sufficient capital may seek another country that is abundant in land or labor, or firms may seek international investment when their home market becomes saturated. Today, almost every company is affected by global competition— regardless of size. Most foreign origin manufacturers and even more compete against foreign-born products or services. International business remains a broad concept that involves the smallest companies that can only export or import with another country, as well as the world's largest companies with integrated operations and strategic alliances around the world.