Premium Essay

International Business: a Theoretical Approach

In: Business and Management

Submitted By Agata304
Words 9493
Pages 38
EXPANDING ABROAD: MOTIVATIONS & MEANS
INTERNATIONAL BUSINESS: It consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations
The main characteristics of the international business are: - flow of ideas, services and capital across the world - new choices to consumers - acquisition of a wider variety of products is offered - the mobility of labor, capital and tech is facilitated - new challenging employment opportunities - reallocation of resources, shift of activities to a global level
International business has created a network of global links that bind countries, institutions, and individuals with trade, financial markets, technology, and living standards.

MULTINATIONAL ENTERPRISE (MNE): is a business –profit or non-profit – that operates in the global arena (across national borders), with no regard to the dimension of the firm
The main peculiarity of an MNE is the fact that manage actively and coordinately a set of operations located in different countries.
To be true MNE a company must: * have substantial, direct investment in foreign countries (not just the trading relationships of an import-export business) * and actively manage those operations as affecting their strategy and organization
The MNE is a recent phenomenon, mostly developed in the post-WW II years.

The United Nations has changed (1984) the definition of MNE as these companies have grown in size and importance: “the MNE is an enterprise comprising entities in 2 or more countries, regardless of the legal form and fields of activity of those entities, which operates under a system of decision making permitting coherent policies and common strategies through one or more decision-making centers and in which the…...

Similar Documents

Premium Essay

International Business: Cultural Approach

...------------------------------------------------- International Business Essay : Intro : Mohamed Branine (2011). Managing across cultures. London: Sage . p36-42. In today’s world of massive globalization, managers doing international business have to deal with cross-cultural management. Thus, with these interconnections, it seems important to adapt one way or another in order to stay on the market. Each country has its own culture, which differs from other countries in many ways. That’s why a manager has to be careful about the political, legal and economic challenges, but also technological challenges (Branine 2011). However, the main challenge is to deal in a good way with all the cultural differences concerned by the exchanges in the market. A. Ball, J. Geringer, S. Minor, M. McNett. (2009). Sociocultural Forces. In: McGraw-Hill International Business: The challenge of global competition. New York: Paul Ducham. p137-167. For this, many cultural elements affecting international trade have to be taken into account. It could be sociocultural components as aesthetics, attitudes and beliefs, religion, language, education, legal characteristics and political structures as well (A. Ball et al. 2009). In a first part, I’ll talk about these cultural elements affecting business across different cultures. Then, we’ll observe if that create some additional costs, depending on the way the company is practicing international business. Actually, cost Information will be completely......

Words: 2060 - Pages: 9

Premium Essay

International Business

...ETHICAL REFLECTIONS ON THE CHALLENGES FACING INTERNATIONAL BUSINESSES IN DEVELOPING AREAS Frederick Bird, Concordia University June17, 2003 (Preliminary draft: Please do not cite without permission) Introduction: We now live in a world where the lives of all peoples are inextricably inter-connected. We have been brought closer to each other through modern systems of transportation and telecommunication. Commercially the links between people grow in number and complexity. Elements in the products we use, the clothes we wear, and the food we eat may come from quite diverse places from all over the earth. The volume of trade between countries has greatly increased. We are inter-connected in other ways as well. A disease like AIDs begins in one part of the world and within a short span of years it has spread throughout the globe. How humans utilize natural resources in one certain parts of the world may well affect those in other parts. Particles from insecticides used in the tropics eventually appear in rain and snow of artic areas. Pollution caused by industry and vehicles in urbanized areas ends up disturbing the earth’s atmospheres in ways that affect all humans. We have become inter-connected in still other ways. Humans have migrated all over the earth. Vast numbers of people have moved from rural to urban areas, from continent to continent, in the process bringing with them parts of their varied cultures and traditions. Religiously humans are now more inter-mixed then ever....

Words: 9404 - Pages: 38

Premium Essay

International Business

...budget policy, the evidence indicates that the expansion of the distribution of consumption vouchers will not squeeze out government expenditures. The policy implication is that the distribution of consumption vouchers will yield a multiplier effect, which will further stimulate effective demand and contribute to Taiwan’s depressing economy. The possible crowding-out effects resulting from the consumption vouchers can be ignored, suggesting that the consumption voucher policy may ultimately be accepted as an effective approach to stimulate the economy. Keywords: System Dynamics, Consumption Voucher, Multiplier Effect JEL Classifications: C61, E21 (2) 應 用 經 濟 論 叢 , 89 期 , 民 國 100 年 6 月 −155− The Dynamics Analysis and Simulation of the Macro Economic Behavior of Taiwan’s Invigorating Economy Consumption Voucher Wen-Chin Wei I. Introduction The recent global financial tsunami has led to the deflation of the finance industry’s credit and reduced business investments. Meanwhile, Taiwan’s central bank has dropped interest rates six times in a row, but no significant predicted outcome has occurred. As a result, the public has continued to deflate its consumption, and firms have cut down on their investments; the public expenditure expansion policy has been too slow to save the bad situation (Zhang, 2009). Therefore, Taiwan’s government distributed consumption vouchers on January 18, 2009, to spur private consumption in order to bring positive benefits for......

Words: 8777 - Pages: 36

Premium Essay

International Business

...Section A: 1) What is international business? What are the primary reasons that companies engage in international business? Answer: International business is a term used to collectively describe all commercial transactions private, governmental, sales, investments, exports and imports in and out of the country to any other country around the world. 1- To diversify sources of sales and supplies. 2- To acquire resources. 3- To minimize competitive risk. 4- To expand sales. 2) In a short essay, identify and explain three competitive factors that influence international businesses. Answer: Consumers know about and want foreign goods and services, governments are removing international business restrictions, Competition has become more global. Section B: 1) What is the difference between a monochronic and polychronic culture? How do such cultural differences affect business practices for international firms? Answer: Monochronic cultures like to do just one thing at a time. They value a certain orderliness and sense of there being an appropriate time and place for everything. They do not value interruptions. They like to concentrate on the job at hand and take time commitments very seriously. Polychronic cultures like to do multiple things at the same time. A manager's office in a polychronic culture typically has an open door, a ringing phone and a meeting all going on at the same time.  2) What is the difference between a polycentric,......

Words: 350 - Pages: 2

Premium Essay

International Business

...Hasan Hajibrahim International Business “BUSH03” Starting business links with China Report December 16, 2013 Table of contents: Page number Introduction (Motivations to International Business) …………….… 1 Commercial Laws in China …………………………. 1 & 2 Foreign business entities in China …………………………. 3 Facts about China …………………………. 4 Estimating Market Potential …………………………. 5 Market Segmentation …………………………. 5 Marketing Management …………………………. 6 Pricing …………………………. 7 Advertising …………………………. 8 Personal Selling …………………………. 9 China’s Economy and Trade Statistics …………………………. 9&10 China’s Reform Plan …………………………. 10&11 Arguments and Conclusions …………………………. 11 List of References …………………………. 12&13 Introduction Motivations to International business: The need to enter new markets and stretch business internationally can be motivated either proactively or reactively; as discussed by Czinkota, Ronkainen and Moffett (2011:430-432) the proactive motivation is driven by; the directive to increase profits; achieve business growth cross borders; having unique products that are in high need in the international markets; tax benefits that can result in higher profit margins and lead to reducing cost prices; also when a business have access to exclusive information in the international market. The reactive motivation is generated by the adaptation of a business to imposed......

Words: 5598 - Pages: 23

Free Essay

International Business

...International Business- Dr. R. Chandran 1. International Business: Meaning And Scope Interdependency is a natural phenomenon; nations, living beings and companies cannot totally depend on themselves. It is the major driving force for international business. Learning value: This chapter covers the essential aspects, 1. 2. 3. 4. 5. Definition of international business Emergence of developing nations in international business Motives of international business from companies and nations Fundamental differences between Domestic and International business Few successful organizations in Domestic & International business International business: Meaning and Scope In the post independence era, more than half-century Indian entrepreneurs concentrated on domestic operations and a surplus production was exported. The physical movement of goods, called EXPORT cannot represent International business. International business is defined as “any commercial transaction-taking place across the boundary lines of a sovereign entity”. It may take place either between countries or companies or both. Private companies involve themselves in such transactions for revenue, profit and prosperity. If governments are involved, they need to maintain their image, dependency and economic growth. Sometimes economic ties are strengthened through such transactions. These transactions include investments, physical movements of goods and services, transfer of technology and manufacturing. Today every......

Words: 70922 - Pages: 284

Free Essay

International Business

...Journal of Business Venturing 27 (2012) 266–290 Contents lists available at SciVerse ScienceDirect Journal of Business Venturing International entrepreneurship research in emerging economies: A critical review and research agenda Andreea N. Kiss a,⁎, Wade M. Danis b, 1, S. Tamer Cavusgil c, 2 a b c Global Economics and Management Department Faculty of Economics and Business University of Groningen, 800 Postbus, 9700 AV Groningen, The Netherlands Peter B. Gustavson School of Business, University of Victoria, P.O. BOX 1700 STN CSC, Victoria, BC Canada V8W 2Y2 J. Mack Robinson College of Business, Institute of International Business, Georgia State University, P.O. Box 3989, Atlanta, GA 30303-3989, USA a r t i c l e i n f o a b s t r a c t This article systematically reviews and critically examines international entrepreneurship research in emerging economies (IEEE research), and articulates its importance, timeliness and relevance in consideration of the growing influence of emerging markets in the global economy. A systematic analysis of eighty-eight journal articles published over the last two decades reveals that IEEE research is a vibrant and rapidly growing stream of the broader international entrepreneurship (IE) domain, and that it is methodologically and topically diverse. Our review also shows that IEEE research has a limited presence in premier journals, is highly skewed in its geographic coverage, and is somewhat fragmented. We therefore......

Words: 21137 - Pages: 85

Free Essay

International Business

...What is International Business? International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. Learning Objectives To understand the history and impact of international business. To learn the definition of international business. To recognize the growth of global linkages today. To understand the U.S. position in world trade and the impact international business has on the United States. To appreciate the opportunities and challenges offered by international business. Introduction: International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more nations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often......

Words: 3329 - Pages: 14

Premium Essay

International Business

...2 Currently there is a heated debate regarding whether Britain should stay the EU. Critically evaluate whether Britain leaving the EU is a good idea. You should refer to relevant theoretical frameworks in your answer. The European Union is an economic and political union, made up of 27 European Countries. The original treaty was signed in Paris in July 1952, there were six countries that signed, but it only became known as the European Union in 1993, at the Maastricht Treaty. The United Kingdom joined the EU in 1973, and has been a major factor in it since. With globalisation the world seems to be getting smaller each day, and the EU is proof of that, that majority of a continent stand together, a continent that has previously been ravaged by numerous wars. That by being a part of the EU shows the importance of being part of a larger political bloc in such a globalised world. Currently the Euro and many European Countries are not doing so well and are considered to be in a bit of a mess. This is one of the main reasons why the UK are considering leaving the EU, as it is slowly becoming a burden. Currently now the UK is roughly 10% of its GDP, about £150 billion, worse-off every year because it is a member of the EU. So do the benefits outweigh this massive cost? That is the question that so many have tried to answer, most recently David Cameron, British Prime minister. By leaving the EU the UK might be more attractive to foreign investors as the EU has many laws......

Words: 1535 - Pages: 7

Free Essay

International Business

...Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work’s original creator or licensee. Organization The overarching logic of the book is intuitive—organized around answers to the what, where, why, and how of international business. WHAT? Section one introduces what is international business and who has an interest in it. Students will sift through the globalization debate and understanding the impact of ethics on global businesses. Additionally, students will explore the evolution of international trade from past to present, with a focus on how firms and professionals can better understand today’s complex global business arena by understanding the impact of political and legal factors. The section concludes with a chapter on understanding how cultures are defined and the impact on business interactions and practices with tangible tips for negotiating across cultures. WHERE? Section two develops student knowledge about key facets of the global business environment and the key elements of trade and cooperation between nations and global organizations. Today, with increasing numbers of companies of all sizes operating internationally, no business or country can remain an island. Rather, the interconnections between countries, businesses, and institutions are inextricable. Even how we define the world is changing. No longer classified into simple and neat categories, the rapid changes within countries are......

Words: 239764 - Pages: 960

Premium Essay

International Business

...www.pearsoned.co.uk MANAGING CHANGE A STRATEGIC APPROACH TO ORGANISATIONAL DYNAMICS FIFTH EDITION BERNARD BURNES To Sue, Duncan, Stuart and Hobbes Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published under the Pitman imprint 1992 Second edition published under the Pitman imprint 1996 Third edition published 2000 Fourth edition published 2004 Fifth edition published 2009 © Bernard Burnes 1992, 1996 © Pearson Education Limited 2000, 2004, 2009 The right of Bernard Burnes to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without either the prior written permission of the publishers or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, Saffron House, 6–10 Kirby Street, London, EC1N 8TS. ISBN 978-0-273-71174-2 Ariff, J. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Burnes, Bernard, 1953– Managing change : a strategic approach to organisational dynamics / Bernard Burnes. – 5th......

Words: 300365 - Pages: 1202

Free Essay

International Business

...………………………………………………………………………..1 1.1 RATIONALE … 1.2 RESEARCH AIM 1.3 RESEARCH QUESTION ……… 1.4 RESEARCH OBJECTIVES 2.0 THEORETICAL ANALYSIS …… 2.1 ACADEMIC THEORY, CONCEPTS AND MODELS 2.2 CURRENT STATE OF RESEARCH 3.0 RESEARCH METHODOLOGY 3.1.1 TYPE OF INVESTIGATION 3.1.2 DATA COLLECTION METHOD 3.1.3 SAMPLE 3.1.4 ETHICAL ISSUES 3.1.5 DATA ANALYSIS PLAN 3.1.6 TIMELINE (GANTT CHART) 3.1.7 RESOURCES 4.0. CONCLUSION 4.1. APPENDIX 5.0. REFERENCES 5.1 BIBLIOGRAPHY TITLE: AN EVALUATION OF PERSONALITY- JOB FIT AT ZANTECH Limited 1.0 INTRODUCTION Choosing the right person for a job, or for promotion, is a critical undertaking by any organization, for incorrect employee selections lead to frustrated employees and poor on-the-job performance. Personality-Job fit theory is a widely used selection tool that assists organizations in employee selection. It is widely believed that personality is related to job performance and career success. According to the theorist (Holland, 1985) cited in (Robbins and Judge, 2013) on Personality-Job fit theory, “a theory that identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover.” Also according to Holland, quoted by (Arnold, et al., 2010) Holland’s main theoretical propositions, states that “People find environments satisfying when environmental patterns......

Words: 3919 - Pages: 16

Premium Essay

Management Theoretical Business Report

...demand for the cookie spread. Demographic: Relates to the forces that make up the market segments, ranging from age, gender, ethnicity, location as well as many other statistics. Changes in the general population need to be considered when marketing the new product, as different segments have different demands (Tischler, 2015). Micro Environmental Factors: Competitors: Similar products already in Australia such as Nutella (that has also been made into a snack) and Peanut Butter will provide competition for the Biscoff Cookie Butter coming into Australia. The company will need to analyse competitor’s prices and strategies so that they can provide better benefits and alternatives. Media: Media attention can ‘make or break’ a business. Positive media for the cookie paste can aid in creating a well-respected brand name for Biscoff Cookie Butter coming into Australia. II. MARKETING GOAL A 15% increase in sales by 2018 in QLD and South Australia. III. MARKETING STRATEGY Target Customers: Research shows that children have a higher influence on purchase decision in regards to sweet within families (Kumar, 2013). Therefore, Biscoff should target families with children. Aside from Families, studies show that teenagers have a huge amount of buying power, with teenagers and young adults having a huge impact on what becomes popular (Johnston, 2010). Biscoff should target audiences from age 10 – 40, to incorporate the two major age audiences. Furthermore, people that......

Words: 1734 - Pages: 7

Premium Essay

International Business

...1. What are the key exposures to international risk that MNCs have to consider? P. 13-17 - international economic conditions … if conditions weaken, income of consumers becomes relatively low, consumer purchases of products decline and an MNC’s sales in that country may be lower than expected … results in reduction in cash flows and valuation - international political risk … foreign government may increase taxes or impose barriers, consumers may boycott if friction between countries - exchange rate risk … foreign currencies to be received suddenly weaken against dollar, MNC will receive lower cash flows, cash outflows in foreign currencies are exposed to movements but in opposite direction Using the valuation (model) of an MNC, illustrate in detail the impact of these key exposures on an MNC’s value. Make sure to explain all your notation and assumptions. - cost of capital is influenced by the return required by its investors … if there is suddenly more uncertainty surrounding the cash flows, investors may only be willing to invest in the MNC if they can expect to receive a higher rate of return - consequently, higher level of uncertainty increases the return on investment required by investors and the MNC valuation decreases 2. What are the theories that explain why firms become motivated to expand their business internationally? Discuss each. p. 6-8 - comparative advantage … specialization by countries can increase production efficiency -......

Words: 1611 - Pages: 7

Premium Essay

Mcdonalds International Marketing Approach

...Standardisation vs. adaptation international marketing approach with regards to McDonald’s operations in India Introduction The central purpose of the study is to determine the best international marketing strategy for McDonalds in India and shedding light on these strategies- Standardisation or Adaptation. Background McDonald's™ is a pioneer in the foodservice industry with over 32,000 restaurants in about 130 countries. The brand is handled and overseen by two following business organisations in India: * Connaught Plaza Restaurants Private Limited, headed by Mr. Vikram Bakshi, JV Partner and Managing Director, East and North India * Hardcastle Restaurants Private Limited, headed by Ms. Smita Jatia, Managing Director (MD), West and South India McDonalds believes in Q-Quality, S-Service, C-Cleanliness and V-Value. This motto is their driving force in the Indian marketplace. For McDonalds, India was the first country wherein no-beef or pork products were served. McDonalds in India catered to wants and needs of the people, with different menus as well as food processing plants for vegetarian and non-vegetarian customers. Currently, in India there are 300 McDonalds. Discussion Standardisation approach is quite different from the adaptation international marketing approach. When the needs and wants of the target market are same, standardization strategy comes into the picture. On the other hand, if the wants and needs of the target audience are different, and......

Words: 595 - Pages: 3