In this entry, I will talk about the international business.
The definition of international business
International business refers to negotiated trade and investment that join nations and cross state barriers, as performed by firms operating and interacting at various personal, organisational, product, project, function, network, industry, global and other levels (Tsang et al., 2013).
These days, we can easily see international business all over the world.
The three pictures below represent the situation of international business in Apple, Tesco and Samsung.
On the other hand, it was difficult for people to see international business. However, people did international business through The Silk Road. The "Silk Road" is a network of ancient overland trade routes that extended across the Asian continent and connected China to the Mediterranean Sea. For centuries, the "Silk Road" also enabled the transmission of knowledge and ideas between the Eastern and Western worlds. The Silk Road was important because it helped to generate trade and commerce between a number of different kingdoms and empires.
Now, let's move on to how to go international
1) Outsource - not just manufacturing. For example, American and British companies built their companies abroad in order to get more profit.
2) Exporting and importing - exchange rate is an important element in exporting and importing.
3) Franchising - for example, Subway, Kfc and Burgerking.
4) Joint venture - In Dubai, joint venture is an indispensable element. Sometimes, it could cause conflits between two senior managers.
The next topic I would like to focus on is the context of international trade.
This is composed of four elements: Political, Economic, Socio-cultural, Technological and Legal.
Political - It is safe to say that we should be aware of political stability and level of corruption.
Economic - Theory of absolute advantage.
Cultural - We can experience a lot of cultures regardless of long distances.
Technological - It is necessary for country to has a good infrastructure in order to do international trade.
Legal - Trade agreement is an indispensible element to own legal binding.
Lastly, I am going to mention World Trade Organisation (WTO) that is a symbol of international trade. The WTO was formed in 1995 and has 157 member countries working together to supervise and liberalise international trade. In addition, the WTO provides a framework for negotiating and formalising trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements signed by representatives of member governments.
In conclusion, I discussed the definition of international business and then how to go international in more detail by using a variety of examples (such as Burgerking, The Silk Road, Apple, WTO, Tesco ,Samsung). Therefore, businesspeople should know a wide range of perspectives from differnet sections to be successful.
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