International Business and Multinational Enterprise
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Added on 2019-12-03
International Business and Multinational Enterprise
Added on 2019-12-03
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International business andmultinational enterprise
The essay highlights the international business and its scope in the multinational enterprise.British Petroleum is a leading multinational enterprise which is serving in the global market. Theeasy focuses on the importance of trade practises i.e. import and export of goods and services in theeconomy. Exports and imports of products and services brings various opportunists and threats forBritish Petroleum. The company is dealing in production and refining oil and gas and exporting it tovarious host counties in the world. The strategic goals of company are formulate\d to meet thedemands of imports and exports figures, which the company aims to achieve. The current essay focuses on international business in relation of export and import asoperations in multinational enterprise. Internationalbusiness refers to a business that operate inmore then one country. This type of business involves transactions of goods and services throughimport and export in the international borders of an country. Proceedings in international business isconducted all around the worlds (Girod and Bellin, 2011). These business transactions include thetransfer of technology, innovation, goods and services i.e. import and export. International businessreckons giving licence to the business for producing goods and services in the host country.Managerial and all the business services regulated by the business is provided to the internationalbusiness as well. International business of any company is generally affected by the economicdevelopment of the host country, monetary policies, cultural and political significance (Banalievaand et.al., 2015). Apart from these factors market forces, suppliers, transport, advertising andresearch affects the business of the company in international borders. International business isperformed by multinational enterprise which are globally established for production of goods andservices (Buckley, 2014). A multinational enterprise is a company that operates in the worldwide. MNE's approach tothe business is retrospective with the import and export policies followed in the host country.Multinational enterprise has a global philosophical concept towards the productions and operationof the goods and services. MNE requires to make investment in the foreign market with the help ofbuying and selling functions of business in the host country (Andersen, 2011). MNE's structure ismaintained by the forces of the international market and the regulation of the company itself. Importand export by multinational enterprise in international helps the company to increase its efficiencyand proficiency. Global business aspect helps the company to cater to new market and customersneeds. International business helps the MNE to build its brand image and goodwill in the hostcountry as well (Rugman, 2014). MNE's helps to provide employment in the host country whichimproves the reputation of the company in the host market. International business increases choicesfor an MNE by providing a wide scope of export and import of goods and services to variousexponential markets. For analysis of export and import in multinational enterprises British
Petroleum is referred in the essay.British Petroleum is also referred as BP for its worldwide operation in petroleum industry.BP is among the leading oil and gas company in the world. The company deals in refining,producing, exploring and distributing its oil and gas products to various countries. British petroleumoperates in more then 80 countries of the world which includes Mexico, US, Brazil, Russia,Azerbaijan, Africa, etc. UK exports of oil and gas have been more than of $40 billion a year (Smith,2014). BP aims to provide quality and technology advanced services to its customers ofinternational countries. British petroleum respects the cultural values of international country itdeals. It generate excellence towards its products and services to generate maximum customersatisfaction. British petroleum operates in the global market by exporting and importing goods andservices which it produces (Quyen and Nguyen, 2011). Export is referred to the sending of various goods and services to an international countryfor trading and selling. Export is considered as the function of international business where goodsand services of a company are sold in international borders. Export is also mentioned as a economictransfer because of the trade of large scale productions that occurs between two country (Wei andet.al., 2012). Export raise the economic development and growth of the country in the internationaldue to sale and generation of revenue in the host country. Export can only be done by abiding theforeign trade policies and export regulation formulated by the government of UK. Export isimportant to the countries economic growth. Advantages of exportExport serves various advantages to the economy of the country. The major advantage ofexport is on the technological area of the country. British Petroleum is facilitated with the transferof technology and innovation from the homeland to the host country. The host country is in deepadvantage of rising technological advantages that it gets from the the MNE (Buckley andBoddewyn, 2015). Employment also raises in the host country as the British Petroleum expands itsbusiness in the host country. Rise in employment in the host country improves the economy of thecountry. The host country provides resources to the British Petroleum and in return is facilitatedwith the rise in employment generation. Employment generation helps in increasing the talent of thehost country, this phenomenon also helps to brain drain excellent and proficient human resource tothe home country (Czinkota and et.al., 2009). As the British Petroleum establish its business in anhost country it invests a high amount of financial resources in the host country. Expansion andestablishment of British Petroleum requires a lot of financial support thus the multinational businessexpects high return on investments. International business helps the business in generating return oninvestment which improves British Petroleum and the home countries economy of scale (Piekkariand Tietze, 2011). The investment in setting up of business in a host country is a direct source of
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