International Business and Types of International Business

International Business and Types of International Business

International Business and Types of International Business

Define International Business?  What are the types of International business?

Ans : business is increasingly becoming international or global in its competitive environment, orientation, content and strategic intent.  This is manifested or necessitated or facilitated by following :

(a)   The competition can be in a firm local, national or foreign-now encounters, in many cases, is global, i.e. besides the competition from the domestic it has to competitive with products manufactured in India by foreign firms and imports.

(b)   Because of liberalization, a firm has the challen ging opportunity to improve its competitiveness and scope of business by global sourcing of technology, material, finance, human resources etc.

 

(c)   Globalisation is facilitating globalization of operations management to optimize operations and to improve competitiveness.  Global value chain management is indeed a key factor of success.

(d)   The universal liberalization and the resultant global market opportunities are taken advantage of by the firms to consolidate and expand of business.  Growing competition at home pushing many companies overseas.

(e)   The global orientation of an increasing number of companies I evident from their mission statements and corporate strategies.

Types : International business is divided into following :

(a)   Trading : Import and exports of goods and services have been very fast.  In countries like Japan, there are international trading houses, which transact enormous volume of business.  The export house, trading house, stare trading houses and superstar trading houses are merchant exporters they buy and resell goods.  They are comparatively small in size from giant trading house of Japan.

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(b)   Manufacturing and Marketing :   The manufacturing exports are those who export goods manufactured by them.  Many MNCs and other firms both small and large do manufacturing and marketing

(c)   Sourcing and Marketing :   There are many MNCs and firms which outsource their products which they market at home and abroad.

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(d)   Global Sourcing for Production : There are many firms that outsource globally their raw material, intermediates etc required for their manufacturing.

(e)   Services : Services is an enormous and fast growing sector of international businesses.  There is a large variety of services rendered Sinternationally.  The broad segment includes tourism and transportations, IT, banking, insurance, consultancies etc.

(f) Investments : International portfolio investment has been growing fast, as a result of globalization.

FDI are associates with establishment of manufacturing or marketing facilities abroad.

So, in short we can say that every business in today’s world is growing internationally and world is coming closer and with this there are greater chances of revenue generation.

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