File Name: nature and characteristics of international business .zip
Business is an economic activity of production and distribution of goods and services. It provides employment opportunities in different sectors like banking, insurance, transport, industries, trade etc.
International marketing can be described as the various activities designed in the planning process. Activities such as fixing pricing structures to suit local needs, formulating promotional offers and assuring that the products and services are available to customers residing in the home country as well as the foreign country. Identifying and satisfying the consumer needs globally are the major functions to be taken care of.
The following points highlight the three importance of International business. The importance are: 1. National Economy 2. Importance to Exporting Firm 3. Importance from Other Points of View. To face competition successfully-better quality goods production having lower or moderate prices.
It involves cross-border transactions of goods and services between two or more countries. Transactions of economic resources include capital, skills, and people for the purpose of the international production of physical goods and services such as finance, banking, insurance, and construction. International business is also known as globalization. To conduct business overseas, multinational companies need to bridge separate national markets into one global marketplace. There are two macro-scale factors that underline the trend of greater globalization. The first consists of eliminating barriers to make cross-border trade easier e.
5 characteristics of an entrepreneur
In this article, we shall understand the features of international business. Large scale Operations:. To cope with the global competition in international business, all the operations are conducted on a very huge scale and generally using special purpose machinery and high skill labour. Production and marketing activities are conducted on a large scale. After satisfying the domestic market, the international market is tapped. Immobility of Factors:. The degree of immobility of factors like labour and capital is generally greater between countries than within a country due to the immigration laws, citizenship, qualifications, etc.
Features of International Business
However international business is beyond this definition, it has a very wide scope. Basically international business is a cross border transaction between individuals, businesses, or government entities. The transaction can be of anything that has value, examples include —. All the major international business conducted in the world can come under seven main types.