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Introduction to International Business Unit 1

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Added on  2020-10-06

Introduction to International Business Unit 1

   Added on 2020-10-06

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INTRODUCTION TO INTERNATIONAL BUSINESSUNIT-IBusiness:-Business is an economic activity, which is related to continuous andregularproduction and distribution ofgoodsand servicesforsatisfyinghuman wants.•Stephenson Definition:- "The regular production or purchase and sale ofgoods undertaken with an objective of earning profit and acquiring wealththrough the satisfaction of human wants."•Dicksee Definition:- "Business refers to a form of activity conducted withan objective of earning profits for the benefit of those on whose behalfthe activity is conducted."
Introduction to International Business Unit 1_1
Features of BusinessExchange of goods and servicesDeals in numerous transactionsProfit is the main objectiveBusiness skills for economic successRisks and Uncertainties
Introduction to International Business Unit 1_2
Goods and ServicesGood is a commodity,ora physical,tangible item thatsatisfies somehuman want or need,or something that people find usefulor desirableand make an effort to acquire it.A service is an activity which has some element of intangibility associatedwith it, which involves some interaction with customer or with property intheir possession, and does not result in a transfer of ownership.Philip Kotler defines a service as, “Any act or performance that one partyoffers to another that is essentially intangible and does not result in theownership ofanything.Its production may ormay notbe tied to thephysical product.”
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Characteristics of ServicesIntangibilityInseparabilityPerishabilityVariability
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Meaning and Definition of International businessInternationalbusinessencompassesallcommercialactivitiesthattakeplace to promote the transfer of goods, services, resources, people, ideas,and technologies across national boundaries.Cambridge dictionary defines:internationalbusiness as – “the activity oftrading goods and services between countries”.However international business is beyond this definition, it has a very widerscope.Basically internationalbusinessisa crossbordertransaction betweenindividuals, businesses, or government entities.
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“InternationaIbusiness consists of transactions that are devised and carriedoutacrossnationalbordersto satisfy the objectivesofthe individuals,companies and organizations. These transactions take on various forms whichare often interrelated.” – Michael R. Czinkota“Internationalbusinessinvolvescommercialactivitiesthatcrossnationalfrontiers” – Roger Bennett
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International business occurs in many different formats like:The movement of goods from country to another (exporting,importing,trade)Contractual agreements that allow foreign firms to use products, services,and processes from other nations (licensing, franchising)The formation and operationsofsales,manufacturing,research anddevelopment, and distribution facilities in foreign markets
Introduction to International Business Unit 1_7
TYPES /MODES OF INTERNATIONAL BUSINESSESIMPORTS AND EXPORTSLICENSINGFRANCHISINGOUTSOURCING JOINT VENTURES MULTINATIONAL COMPANIES
Introduction to International Business Unit 1_8

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