International Business notes of Osmania University

AMSSOI-Andhra Mahila Sabha School of Informatics

AMSSOI-Andhra Mahila Sabha School of Informatics

Osmania University
Hyderabad, Andhra Pradesh, India

International Business notes of Osmania University

By Navaditha Mogili

Introduction:
International business (IB) means business or commercial transactions that take place between two or more than two countries. It can be conducted in many ways like import- export of goods and services, issuing license, international franchising to produce goods in other country, foreign direct investment (FDI), providing outsource services to the other companies across the nation, starting joint venture with a company etc.

Role of IB in Economic development:
Since 1980’s there is a high competition at global level. International business has a great scope in private sector. The operations are conducted on large scale and hence it also provides wide area of job opportunities which helps in sound employment ratio. The developing countries get an opportunity to get advance technology and foreign capital which helps in industrial development and leads to overall economic development.

Government sector participate in international business for strong political relations.

Challenges:
International business goes through the number of economic, political and other business formalities. So, it gets affected by any change in economic and political conditions. Hence it is very sensitive in nature. To overcome from this sensitive nature and to achieve business goals in Competitive market, all MNC’s or International business plans some strategies.

*Note: Strategies is an approach developed by an organization to achieve its particular business objectives. It is different from policies. Policies guide the plan of action and decisions.

International business strategy:

It is a planned action that governs commercial activities conducted between multiple countries to achieve certain set of goals. International business is similar to national business, but there are some differences which have to be consider for successful execution of international strategies.

Some of the key areas and strategies of international business are: Business entry strategies like exporting, franchising, licensing, joint venture, tax related; political strategies, Humanities promotion & marketing strategies, human resource management (HRM marketing) strategy, product and resource related strategies, cost and profit related etc.