Entrepreneurial Global Ventures PDF
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Added on 2020-10-23
Entrepreneurial Global Ventures PDF
Added on 2020-10-23
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Entrepreneurial Global Ventures
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1PART 1............................................................................................................................................11. Describe the theories in support of International Business................................................12. Explain different tariff and non-tariff control measures for regulating International Business................................................................................................................................................33. Write briefly your country’s trading with European Union and ASEAN countries..........5PART 2............................................................................................................................................71. What are the advantages and disadvantages of trading with regional trading blocs..........72. Describe briefly different modes of entry into International Business and how do youdevelop entry strategy.............................................................................................................93. Explain different communication aspects to be taken care for an effect InternationalBusiness................................................................................................................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONEntrepreneurial Global Ventures can be defined where entrepreneurs conducts businessactivitie throughout the globe. In other words, international entrepreneurship as “thedevelopment of international new ventures or start-ups that, from their origin, engage ininternational business, thus viewing their operating domain as international from the initialstages of the firm’s operation.”In modern business world, global entrepreneurs are being considered as professionalswho uses global understandings so that to locate multinational & cross-cultural opportunitieswhich may aid them in taking initiatives related to set goals and objectives (Andersson andEvers, 2015). Organisation which has been taken under this assignment i.e. Solar Winds Inc,which is located in Texas, America and found in 1999. company delivers infrastructuremanagement software for IT professionals in United States. Present report is going to includetheories related to international business. It will also show differences among tariff and non-tariffconsiderations in context with international market. Away with this, assignment will also focusover selected country's trading against with EU and ASEAN nations. On the other hand,advantages and disadvantages of trading with regional trading blocs are also enclosed that mayaid entrepreneurs at global level. Lastly, assessment is going to put light on variouscommunicational aspects that can impact over international businesses.MAIN BODYPART 11. Describe the theories in support of International BusinessIn modern era, there are ample number of theories present on global level which mayhelp entrepreneurs at the time of venturing worldwide. These hypothesis aid in understanding thebusiness concerns and trade that are linked with global market. Here, international trade refers toa concept which is enclosed with exchanging of goods and services that are being done amongstpeople at different nations (Arbaugh, Cox and Camp, 2018). As compared to domesticmarketplace, venturing into international market may directly help entrepreneurs in makingmuch more profit and generating high revenue than. Start ups or venturing directly atinternational market rather than setting up business at domestic level can help or leadentrepreneurs in earning high margins. Thus, it is required for entrepreneurs to focus over1
number of business trade policies so that to earn profit at high margins. Some of theories ofinternational business which aid in venturing at global market are given below:Theory of Mercantilism : This is being considered as one of the oldest theory which wasfound in 16th period of time and was majorly used by organisations who did business from 16 to18th century. Era. Under this hypothesis, amount of wealth in all over business world stayedstatic. Main purpose of this theory was that to develop an economic policy which is enclosedwith a design that can maximise trade of a whole country or to improve accumulation of bothsilver and gold. On the other hand, theory also helped in setting an aim i.e. to enhance wealth ofa nation with the help of governmental rules and regulations which were related to commercialinterests. Away with this, with the help of this theory it was believed that strength of a countrycan get maximized through reducing or fixing up imports viatariffs& enhancing export trade.Agood example of this theory is England Navigation Act of 1651 which stopped all the foreignvessels related to coastal trade (Barbieri, 2013).Theory of absolute advantage : This theory was found in the year of 1776 by AdamSmith and its main principle was to deliver ability to a single party whether it is a firm or nationso that to enhance quality related to products and services than its rivals with the help of samenumber and amount of resources. Adam Smith have taken labour into consideration in order toimplement this theory over a nation. In other words, absolute advantage is capability of a nationwhile producing the products and services focusing over lower cost per unit than its competitors.For an instance : If United Kingdom generates wine 500 million gallons every year and Italyproduces it more than UK, this can be considered as absolute advantage and are being carried byItaly while they both have used same number of resources.Theory of comparative advantage : Another theory of international business which waspropounded by David Ricardo in the year of 1817 and was over basis of principles of political,economy and taxation. This hypothesis showed that in free trade, an agent whether it is a firm(Solar Winds Inc.) or country produces or manufactures products more and consumes it lesswhich ultimately gives comparative advantages. This theory has helped business firms like SolarWinds Inc. and or nations in gaining many competitive advantages. This theory was pretty muchcontrasted with absolute theory but things which made it different from this hypothesis was thatabsolute advantages focused over quality but comparative kept its importances over offeringproducts with really very low cost (Barringer, 2015). In order to better understand about this2
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