DarIBE International

International Business

The prevalence of international business has increased significantly during the last part of the twentieth century, thanks to the liberalization of trade and investment and the development of technology. International business consists of trades and transactions at a global level. These include the trade of goods, services, technology, capital, and knowledge.

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 international production of physical goods and services such as finance, banking, insurance, and construction. International business is also known as globalization, refers to the international trade between countries, which in turn refers to the tendency of international trade, investments, information technology, and outsourced manufacturing to weaving the economies of diverse countries together.

Therefore to conduct business overseas, multinational companies need to separate national markets into one global marketplace. In essence, two macro factors underline the trend of greater globalization. The first macro-factor consists of eliminating barriers to make cross-border trade easier, such as the free flow of goods and services, and capital. The second macro-factor is technological change, particularly developments in communication, information processing, and transportation technologies.

A multinational enterprise (MNE) is a company that has a worldwide approach to markets, production, and operations in several countries. Multinational enterprises range from any kind of business activity or market, from consumer goods to machinery manufacture, a company can become an international business. Therefore, to conduct business overseas, companies should be aware of all the factors that might affect any business activities, including, but not Ltd to difference in legal systems, political systems, economic policy, accounting standards, labor standards, living standards, environmental standards, local cultures, corporate cultures, foreign-exchange markets, tariffs, import and export regulations, trade agreements, climate, education and language. Each of these factors may require changes in how companies operate from one country to the next. Each factor makes a difference and a connection. Some of the significant elements that have advanced international business include:

  • The formation of the World Trade Organization (WTO)
  • The inception of electronic funds transfers
  • The introduction of the euro to the European Union
  • The technological innovation that facilitates global communication and transportation
  • The dissolution of several communist markets, thus opening up many economies to private business

Today, global competition affects nearly every company regardless of size. Many source suppliers from foreign countries and still more compete against products or services that originate abroad. The international business remains a broad concept that encompasses the smallest companies that may only export or import with one other country, as well as the largest global firms with integrated operations and strategic alliances around the globe.

Because nation-states have unique government systems, laws and regulations, taxes, duties, currencies, cultures, practices, etc. International business is decidedly more complex than a business that operates exclusively in domestic markets. Therefore our company will help our clients to understand the sheer size of the global marketplace. There are currently more than 200 national markets in the world, presenting a seemingly endless supply of international business opportunities.