International Business Environment - Assignment
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Added on 2019-12-28
International Business Environment - Assignment
Added on 2019-12-28
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International BusinessEnvironment
Table of ContentsINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................3CONCLUSION..............................................................................................................................10REFRENCES.................................................................................................................................11
INTRODUCTIONIn this report the methods and theories of the internationalisation is studied. The differentfactors influencing the internationalisation and the modes of globalisation are discussed in thisreport.The most common trend now a days is being engaged in international business. The tradeof goods is increased more than 6% yearly from 1950. Rapid growth in technologies leads tohuge expansion in the global business and the makes easy operations carried out to sustain anglobal business (Stark, 2015). Not only the small countries but also the large countries arecontinuously affected by the global business and global economic changes like UK.The globalisation is result of huge no. of trading across the countries, global investmentsand other. The huge corporate enterprise is the leading factor for the globalisation andinternationalisation. The trade and the globalisation has reduced the gap between the social,political environment in all over the world. The internationalisation is developing the businessoverseas and capturing the foreign market with their products and services.TASKThe business carried outside the parent country and the business regulated in overseas areknown as international business. The business who are delivering their goods and the servicesoverseas are between two or more countries no matter there is physical existence of business inother target countries or not is referred as international business. These are the business who arecarrying out their operations in other than the parent or own country.The international business targets the emerging markets majorly. The emerging marketsare the market which are growing with the faster growth economies in different countries likeBRICS- Brazil, Russia, India, China.Local business are the small local firms that are operated in single area and the customersfor the business are the local people of the same small locality (Rittberger, Zangl and Kruck,2012.). The local business focuses on the personal relationship to attract local customers. The
national business is the enterprise which are located in the different parts of the country as smallunit of an big enterprise. These organisation have wide customers range with development ofnational environment in the organisation. While the international business are operated in morethan one country other than the parent country of the enterprise. These firms deals with thenational and international customers to provide their services and products.The local firms develop themselves as national firms by growth and then enter into theglobal market this is referred to as internationalisation. Different method of the internationalisation are discussed below:1.Export-based method: This method of internationalisation of enterprise is capturing theforeign market with the providing their services and the products to the other countriesthrough trading. The export based method include the indirect export and the directexport. The indirect export involves the intermediators which carry out the exportservices of the firm (Hal and Page, 2014). The enterprise activities are not directlyinvolved in the export of products and services, these are outsourced by others mediator.The enterprise outsource the services like export house, buying house etc. Ex. Theenterprise like Unilever outsource export services for the UK. Direct export includes thebusiness operation directly involved in the exporting of product and directly involved inthe internationalisation of enterprise.2.Non-equity-based methods: These methods includes the licensing, franchising etc.Licensing is the agreement between the licensor and licensee. Licensor providepermission to the other business unit to use of his intangible property. In return ofintangible property licensor receives consideration from licensee a loyalty fee to abide theagreement a lawful contract. While franchising is an upgraded form of licensing in whichthe the business unit who are willing to take franchise of an MNC the unit has to followsome rules and norms along with the intangible property of established firm. Ex theMcDonald, domino's are the groups that are developed by the franchising their serviceswith regulation over staffing, cooking methods, recipe, restaurant architecture etc.3.Equity-based methods: These methods are developed by the involvement of FDI incompeting with other international brand in the economy of the word. Some of the equitbased methods are joint ventures, acquisitions and green field investments, alliances etc.The Cemex is the international retail sector business enterprise dealing as construction
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