International Business

International Business

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Issues faced by companies which make International expansion..........................................2
Assess the global context in which the business will function internationally......................3
Methods of entry.....................................................................................................................5
Reasons why the business wants to internationalise with some theories...............................6
Impact of Multinationals........................................................................................................7
Assess data on country markets..............................................................................................9
CONCLUSION..............................................................................................................................11
References:.....................................................................................................................................12
Books and Journals...............................................................................................................12
INTRODUCTION
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International business in simple words refers to that business which is expanding its business
across the country which means in different country(Atmaca, Erek and Ekren, 2019).
Globalisation is the key factor in which the business can become more independent and develop
the image in the integrated global economy. When any business wants to grow the business at a
global market then the scope and size of the particular business also increases. The global
economy is determined by the multinational companies which are from all over the countries.
The main of every business to reach to the global market is to make the business expand and
grow and on the other hand they have the major responsibility to adopt their business with the
global outlook which could be able to achieve success in that particular market. Amazon is a
multinational technology company which work in e-commerce business and provides every type
of products which the consumer wants. It was established on 1994 and the headquarter is in
Washington, US. This report will cover issues faced by business who are involved in
International Business, how the business has to function, methods of entry, why companies
decide to make international expansion and some theories, impact of multinationals and data on
country markets.
MAIN BODY
Issues faced by companies which make International expansion
Expanding the business internationally means that the business will now interact with other
customers and the markets which has different needs and demands(Mcheik, Al-Akl and
Abdelnoor, 2018). Expanding the business internationally is not that easy because the business
who wants to make the expansion needs to conduct the proper research and for that it requires
huge investment which needs to be made. Expanding the business internationally will be done by
the companies only when they are getting success in the home country. Amazon had developed
the business in many countries and is making expansion in the international markets
successfully. Now the company wants to make the expansion in ‘Thailand” for which the
company is conducting research but some issues are faced by the business for taking the business
internationally which are discussed below-
 International company structure- The company knows the rules and regulations which
has to be followed in the home country for the business. For that the company has to
follow the structure which will be best for them and yes suitable for the employees to
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work in that particular work structure. The business must understand the business
structure which they have to follow and will they be able to follow that business structure
in the new country depends on them. Amazon has developed and expanded the business
in different countries and with that they have developed the idea as to how the business
structure needs to be followed.
 Foreign rules and regulations- Every business owner is comfortable in their home
country in which they have started their business because they already know the rules and
policies which has to be followed. But for the expansion of the business internationally it
becomes important that the business owner must understand the rules and regulations of
the foreign country in which they have to start the business(Ornellas, Spolander and
Engelbrecht, 2018). This is because they would not able to plan the activities or the
business idea before knowing the rules that are being followed in the foreign country.
Amazon first identifies the rules in any country in which they are making the expansion
and now they will be conducting the research of the rules of Thailand.
 Cultural differences- The main issue which is faced by every business for making the
expansion in the international market is that of different culture. The cultural difference is
the main problem which has to be considered by every business because any products or
service they launched in the new market but is it not being purchased by the consumers as
it might not work with their culture.
 Political risks- The political factor are also the major issue which is faced by the
business who are making the international expansion. In the stable political factors it is
easy for the business to start and operate their business because the rules which will be
followed in the country will also be stable (Nusantara and et. al., 2020). But in the
unstable economy which makes it difficult for the business to run it in the country
because of the changing rules and policies of the government.
Assess the global context in which the business will function internationally
For expanding the business globally it becomes very important that the business must assess the
global markets and the similar business which has expanded the business in the international
markets. This is important because conducting research before expanding the business in the
global markets helps in effective planning and formulating the strategies. The competition in the
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