International Business: Features, Advantages, and Influencing Factors

This report provides a comprehensive overview of international business, defining it as engagement with the international market involving the transfer of goods, services, technology, and capital across borders. It highlights the benefits of international business, such as access to a larger customer base and advanced technology, while also outlining its key characteristics, including the use of foreign currency, adherence to international law, the presence of intermediaries, and the high level of competition. The report further discusses the factors influencing international business, specifically political, economic, and technological considerations. It provides a concise summary of the core concepts and essential elements of international business, offering a solid foundation for understanding its complexities and dynamics.

INTERNATIONAL BUSINESS
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International business is a process under which company is engaged with the international
market. In other word it can be said that, international business conducts business transactions all
over the world. Under this transaction, company transfers of goods, services, technology,
managerial knowledge and capital to other countries. (Clark and et.al., 2016) This process involves
exports and imports. In the simple term it can be said that the exchange of goods and services
among the businesses in the multiple countries is known as the international business.
International business is also known as the global business or an international marketing. This type
of businesses includes various options of doing such as exporting goods and services, giving licence
to produce goods in the host country, starting a joint venture with a corporation etc (Demangeot,
Broderick and Craig, 2015). In addition to this, by this business, company can acquire a large
number of customer because it exp[and its existing business operation in the new market. Further,
the major advantage of this type of business is that corporation can gain the opportunity to use the
fast and smart technology of another country.
The organisation who are dealing in the international business then it will beneficial to rapid
industrial development. They can get foreign capital and technology and also get employment
opportunity. Following are some characteristics of international business- Payment in foreign currency- In the international business, organisation have to use the
foreign currency in order to sell or purchase the goods and services to international
customers and suppliers (Kaynak and Kucukemiroglu, 2015). Application of international law- In the international business, corporation have to follow
all rules, regulation and code of conduct which has formulated by the foreign government.
Company have to follow business law, employment law, customer law which has developed
the foreign government. Large numbers of middleman- In the international business, there are large numbers of
middleman available in the foreign market. Company have to select effective distributor so
as it can effectively deliver goods and services to customers.
 Competition- In the international business, company have to face the high level of
competition because in the different countries there have various competitors are available.
According to the available competitors in the market, company have to develop strategy and
tactics.
As per the above discussion it has been ascertained that there are various features and importance of
international business. Company may beneficial in the foreign market and can gain the opportunity
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to utilise resources, equipment, technology and current. However company have to face some
components which largely influence the business in the foreign market. These factors are as
follows-
Political- Company have to follow all rules, regulation, code of conduct and legislation which have
developed by the government in the foreign market.
Economical- In the foreign market, company have to consider the foreign pricing policies,
recession, inflation and interest rates. According to economic condition, corporation will set its
prices of product and services (Schmid, Grosche and Mayrhofer, 2016).
Technological- Changing technology may largely affect the company process in the foreign market.
Company have to use the new and advance technology in the business operation.
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REFERENCES
Books and journals
Clark, T. and et.al., 2016. Where/How Does Marketing Fit? What Is Marketing’s Place in the Firm
and Within the Family of Business Disciplines?. In Let’s Get Engaged! Crossing the
Threshold of Marketing’s Engagement Era. Springer International Publishing.
Demangeot, C., Broderick, A. J. and Craig, C.S., 2015. Multicultural marketplaces: new territory
for international marketing and consumer research. International Marketing Review. 32(2).
pp.118-140.
Ehrlich, T., Shoham, A. and Asseraf, Y., 2016. International Performance: The Role of Inertia,
Stability, and Multinational Flexibility. In Rediscovering the Essentiality of Marketing.
Springer International Publishing.
Schmid, S., Grosche, P. and Mayrhofer, U., 2016. Configuration and coordination of international
marketing activities. International Business Review. 25(2). pp.535-547.
Kaynak, E. and Kucukemiroglu, O., 2015. International Marketing of Airline Services: US Versus
Foreign Carriers. In Proceedings of the 1993 World Marketing Congress. Springer
International Publishing.