Definition of international business International business involves commercial activities that cross national frontiers. It concerns the international movement of goods, capital, services, employees and technology; importing and exporting; cross-border transactions in intellectual property patents, trademarks, know-how, copyright materials, etc.
Why firms engage in international business Businesses undertake international operations in order to expand sales, acquire resources from foreign countries, or diversify their activities Anderson Specific reasons for doing business abroad include the saturation of domestic markets: Further motives for operating internationally are as follows: These effects differ from economies of scale in that they result from longer experience of doing something rather than producing a greater volume of output.
|Dr Nitish Singh||So I accepted the challenge. It was obvious that there was no shortage of data.|
|Mahindra Case Study Essay Sample||Jun 25 Finding the balance between standardization and localization of the web content is one of the preeminent dilemmas that companies face when tapping international markets.|
|Better these infrastructures better will be the growth opportunities in this sector. With the advent of globalization.|
Moreover, the firm's management is exposed to fresh ideas and different approaches to solving problems. Individual executives develop their general management skills and personal effectiveness; become innovative and adopt broader horizons.
All these factors can give a firm a competitive edge in its home country. Economies of scale are reductions in unit production costs resulting from large-scale operations. Common examples are discounts obtained on bulk purchases, benefits The hondas internationalization process business essay the application of the division of labour, integration of processes, the ability to attract high calibre labour and the capacity to establish research and development facilities.
Similar benefits might occur from 'economies of scope', i.
Note how economies of scale might not be available if the firm has to modify its products, promotional strategies and business methods substantially for each country in which it operates, and that the extra costs of foreign marketing, establishment of subsidiaries in other countries, market research, etc.
Sudden collapses in market demand in some countries may be offset by expansions elsewhere. International telephone and fax facilities are much better than previously and facilities for international business travel are more extensive.
Why enter overseas markets? However, special problems arise in international business not normally experienced when trading or manufacturing at home. Exchange rate variations can be very wide and create many problems for international business.
The risks of international business include political risks of foreign governments expropriating the firm's local assets, of war or revolution interfering with trade, or of the imposition of restrictions on importers' abilities to pay for imports ; commercial risks market failure, products or advertisements not appealing to foreign customers, etc.
Why study international business? Nowadays the great majority of large enterprises operate internationally as do an increasing number of small to medium sized firmsso that an awareness of the major issues in international business is a valuable asset for any manager in a company that deals with suppliers, customers, contractors, licensees, etc.
The study of international business helps the individual supplement his or her knowledge of general business functions accounting and finance, personnel, marketing, etc. Also, it develops a person's sensitivity to foreign cultures, values and social norms, thus enabling the individual to adopt broader perspectives and hence improve his or her overall managerial efficiency.
Entry strategies to foreign market: Exporting, Licensing, Joint Venture, Direct Investment and Exporting Exporting is the marketing and direct sale of domestically-produced goods in another country.
Exporting is a traditional and well-established method of reaching foreign markets. Since exporting does not require that the goods be produced in the target country, no investment in foreign production facilities is required. Most of the costs associated with exporting take the form of marketing expenses.
Exporting commonly requires coordination among four players: Exporter, Importer, Transport provider and Government Licensing Licensing essentially permits a company in the target country to use the property of the licensor.
Such property usually is intangible, such as trademarks, patents, and production techniques. The licensee pays a fee in exchange for the rights to use the intangible property and possibly for technical assistance. Because little investment on the part of the licensor is required, licensing has the potential to provide a very large ROI.
However, because the licensee produces and markets the product, potential returns from manufacturing and marketing activities may be lost.
In exchange the franchisee pays a fee to the parent company typically based on the volume of sales of franchisor in its defined market area e. Host countries may require that branch companies to be domesticated i. Joint Venture There are five common objectives in a joint venture: Other benefits include political connections and distribution channel access that may depend on relationships.
Such alliances often are favorable when: The key issues to consider in a joint venture are ownership, control, length of agreement, pricing, technology transfer, local firm capabilities and resources, and government intentions.
International Business Terms Organization structures have given rise to the following companies: International companies are importers and exporters and have no investment outside their country. Multinational companies have investment in other countries, but do not have coordinated product offerings in each country.
They more focused on adapting their products and services to each individual local market.What is the broader question that the field of International Business (IB) is concerned with? This essay will look at both of these categories of firms and will provide information on the factors which The Evolution of Country and Firm Specific Advantages and Disadvantages in the Process of Chinese Firm Internationalization .
He believed the lightweight motorcycles were no threat to Harley's business. By the middle of the 's HD realized its mistake an tried to compete in this segment by bringing motorcycles from Italy.
and no where no wear the quality of the Hondas, the market leader at the time. “collocation of suppliers with production facilities and. Global Corporate Strategy HONDA Honda from the view point of customer has critically analysed by regarding `product related core competencies` and `process related dynamic capabilities` then argument which is about recognising core competencies of Honda has linked to notion of analysing and accepting them as a whole.
2 INTRODUCTION Honda. The Hondas Internationalization Process Business Essay. Honda Motor Company, Ltd is the most prominent automobile company of japan. It stepped into the Japanese market in the Honda, one of the largest automobile manufacture in the world, has its companies all over the world.
The scale of the company increases day by day. Honda took many successful steps to enter into the global market.
China is a huge market that attracts m. Aug 05, · This allows for the business to work in a logical order and promotes a more logical approach to the making of business decisions. The end result is organizational progress and consistent profitability.