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Why and when does culture matter in international business
Why and when does culture matter in international business
Domestic marketing vs international marketing
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International Business 1. International Business is a transaction between two or more countries and is primarily based in a single country, but acquires some meaningful share of its resources or revenues (or both) from other countries. It comprises a large growing portion of the world's total business. Although it's riskier and more expensive it allows for greater variety on different products and services at lower prices. Domestic Business is a transaction within the home country; it acquires all of its resources and sales, and all of its products or services within a single country. A well functioning domestic economy will allow for smooth operations for International Business. The difference between international and domestic business is, first, when international business takes place it affects a variety of components such as profits, employment, wages, and security. These important aspects are sometimes negatively impacted and affect the citizens of the home country. On the other hand, domestic business generates jobs and promotes economic security. According to Daniels, Radebaugh, and Sullivan most companies engage in international business to expand sales, acquire resources, and minimize risk. When a company wants to expands sales it also expands its competitive realm. The company steps outside the boundaries of its origin to maximize profits and also use it as a balancing factor. For example, if sales are down domestically and sales are up internationally the company will not be at a loss. They actually create a competitive advantage to those companies who limit itself to domestic business only. There are policies and regulations on goods that are being shipped internationally. Engaging in domestic bus... ... middle of paper ... ...hey are engaging. Communication is a way of expressing thoughts and ideas that are delivered in a verbal or non-verbal manner. Most countries have a different language, dialect, and language interpretation. Sometimes having a language translator is not enough to coherently convey the initial meaning. Certain words translated in another language can mean something totally different from what the originator intended. There are also signs, symbols, and colors that send a "silent language" that may trigger an association with ones culture. So, when companies enter into a foreign market they have the have to know and understand the verbal and non-verbal cues when promoting its product. Overall, once adjustments are made and communication is accurately expressed, conducting international business should lead to the possibility of a successful business relationship.
• A more competitive, efficient and profitable business with less competition in the domestic markets.
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
Language and culture are problematic issues when it comes to international marketing. When a company enters the global markets it has to deal with many issues, which do not exist when it comes to the local market. Language is one of the problems and is always a challenge. Even though English is spoken around the world in most cases it cannot be used as a language for international campaign. Therefore the translation of the campaign into the foreign language is very important.
We all know that comapanies go international for many reasons but always typical goal is comapny growth and expantions. When a company searches for new interesting markets abroad and also hires international employees, using well designed international strategy can for sure expand business on foreign markets. Internalization strategy of companies is now possible because is no problem to manage business by phone or e-mail. There is also no problem to travel by plane from Europe to Asia in few hours what was not possible in past.
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
Why would a company go international? There are many reasons why companies would go international, but generally a company goes international so they can seek opportunities in domestic markets, or they seek solutions to problems that cannot be solved through domestic operations. There are many profitable possibilities by going internationally and these include greater profit potential, offers new locations to sell products, it may provide better access to needed raw materials, it may access to financial resources from many nations, and lastly it may allow labour-intensive activities to locate in countries with lower labour costs. For a small business to become an international business they must use five guidelines the first is global sourcing, exporting and importing, licensing and franchising, joint ventures, and wholly owned subsidiaries. The first two are market entry strategies and the remaining are direct investment strategies.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
International trade is very crucial for every business around the world as it is not possible to produce all goods and services within a country. There are some goods that are not available locally, so it needs to exchange the goods and services which are possible to execute with international trading. International trading is beneficial to businesses and it is very economical. Some of the benefits of international trading to UK business organizations are:
Daniels, J. D., Radebaugh, L. H., and Sullivan, D. P., (2011). International Business: Environments and Operations. Prentice Hall, Upper Saddle River, New Jersey.
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter. THE SOVEREIGNITY OF NATIONS From the international laws point of view a sovereign state is independent and free from external control; enjoys full legal equality; governs its own territory; selects its own political, social, economic systems; and has the power to enter into agreements with other nations. It is extension of national laws beyond a country's borders that much of the conflict in international business arises. Nations can and do abridge s...
You may ask yourself what is international management? Well, international management is the practice of managing business operations in at least two or more countries. Professionals are familiar with the language culture, economic, and political environment, and business practices of countries in which multinational firms actively trade and invest. They also have the conceptual and analytical skills that are needed to formulate effective management strategies and policies to benefit all the firm’s constituents in today’s globally competitive environment.
...eded. I wish I could take this class more early. When I saw the responses from classmates, the responses were very different because the experience of each classmate is different. Now, I realize how diverse the customers would be. Even though most of the customers were from United States, I am not from United States. I could not understand what they need in first place. I have seen some ads example showing how simply translating words is not enough. Pepsi Cola’s “Come Alive With Pepsi” campaign when it was translated for the Taiwanese market, conveyed the unsetting news that, “Pepsi brings your ancestors back from the grave.” This shows that deeper understanding of the other culture is necessary to translate meaning effectively. In short, cross cultural communication is relatively important for me when I want to do business international or domestically.
There is one thing that differentiates the international business with the domestic business where it uses more than one currency in the commercial transaction. For example, if a company from British purchases some goods from a company from US, the international transaction will require for exchanging pounds and U.S. dollars which involve the foreign exchange market. In the foreign exchange market, any country that wish to do business with foreign country, the country need to convert their domestic currency into the foreign currency that they are wish to cooperate with through foreign exchange.
These days’ main economical choices involve cross-border difficulties. Choices in regard of increasing investment, control of threat, financing choices, reorienting, and all other characters of economical plan usually include worldwide complications and these difficulties raise the demand of worldwide economical management. As economical supervisors take these choices they should analyze foreign exchange rates, threats of an individual nation, duty regulation's variations and difference in lawful procedures. The aim of this paper is to talk about the significance of worldwide economical management to recognize that the part which economical management is competing in a contemporary worldwide business situation, explain the international financial system, and how to apply an economical administrator at an international company.
“To get rich and glorious” quote was said by Deng Xiao Ping, member of the communist party in China. They got richer, faster than any people ever had. The economy is now 10 times larger than it was then; it grew 300% just in the last 10 years. Incomes rose every year. People in China are becoming millionaires there than anywhere else on earth (Time Asia.)