Different nations all over the world are experiencing an essential change in the way they deliver and market various items, products and services. The national economies that were accomplishing the objective of self-sustainability are currently developing route towards International Business. The factor for this crucial change is the development of correspondence, innovation, communication, infrastructure and so on.
Introduction to International Business
Business activities done across national borders is International Business. The International business is the purchasing and selling of the goods, commodities and services outside its national borders. Such trade modes might be owned by the state or privately owned organization.
In which, the organization explores trade opportunities outside its domestic national borders to extend their own particular business activities, for example, manufacturing, mining, construction, agriculture, banking, insurance, health, education, transportation, communication and so on.
Nations that were away from each other, because of their geological separations and financial and social contrasts are now connecting with each other. World Trade Organization established by the administration of various nations is one of the major contributory factors to the expanded connections and the business relationship among the countries.
The national economies are dynamically getting borderless and fused into the world economy as it is clear that the world has today come to be known as a ‘global village’. Numerous more organization are making passage into a worldwide business which presents them with opportunities for development and tremendous benefits.
India was trading with different nations for quite a while, yet it has quickened its progress of incorporating with the world economy and expanding its foreign trade and investment.
Browse more Topics under International Business
- Contract Manufacturing, Licensing and Franchising
- Importing and Exporting
- India’s Involvement in World Business
- Joint Ventures and Wholly Owned Subsidiaries
- Export Procedures and Documentation
- Imports Procedures and Documentation
- Foreign Trade Promotions: Incentives and Organisational Support
- International Monetary Fund (IMF) and World Trade Organisation (WTO)
- International Trade Institutions and Trade Agreements
Benefits of International Business
International Business is important to both Nation and Business organizations. It offers them various benefits.
Benefits to Nation
- It encourages a nation to obtain foreign exchange that can be utilized to import merchandise from the global market.
- It prompts specialization of a country in the production of merchandise which it creates in the best and affordable way.
- Also, it helps a country in enhancing its development prospects and furthermore make opportunity for employment.
- International business makes it comfortable for individuals to utilise commodities and services produced in other nations which help in improving their standard of life.
Benefits to Firms
- It helps in improving profits of the organizations by selling products in the nations where costs are high.
- It helps the organization in utilizing their surplus resources and increasing profitability of their activities.
- Also, it helps firms in enhancing their development prospects.
- International business also goes as one of the methods for accomplishing development in the firms confronting extreme market conditions in the local market.
- And it enhances business vision as it makes firms more aggressive, and diversified.
Solved Question for You
Question: What is ‘global village’?
Answer: The national economies are dynamically getting to be borderless and getting fused into the world economy. This scenario whereas makes it clear that the world has today come together be known as a ‘global village’.