International business

International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more regions, countries and nations beyond their political boundary. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.

Why do companies go for International Expansion?

There are various reasons to going internationally, but the goal of every company growth or expend its business whether a company hires international employees or searches for new market, and expend its customer base. Some reasons are as follows:

Growth: Every company wants to growth in its business, Launching products in International market to increase customer and to capture more market share to becoming a leader.

Employees: Every company wants to the skilled and well trained employees to its. so company goes to the internationally to find alternate source of the labor and to look for lower cost manufacturing, technology assistance and other services in order to maintain competitive advantage.

Resources: Some companies go for resources which are not available in domestic country at better or competitive price.

Ideas: Company go to internationally to collect the different ideas from the different culture of different countries.

Date: 2014-12-21; view: 1119