International Business Management:-
It is the management of business operations in organizing serving markets and operating in more than one country. It requires knowledge and skills beyond normal business expectations such as familiarity with local market and competitive conditions, legal and financial environment.
Scope of international Business:-
- Merchandise imports and exports:-
- means tangible goods i.e. that can be touched and seen. Which means sending tangible goods to abroad and receiving tangible goods from abroad.
- Service imports and exports:-
- involves trade in intangibles. It is because of the intangible aspect of services that trade in services is also known as invisible trade.
- Licensing and franchising:-
- permission to another party to use your trademark, patents or copyrights is also an international business. The business which involves international business had to get a license from the government before getting started with trade.
- Foreign investments:-
- means investments of funds abroad in exchange for financial return. It can be of two types i.e. direct and portfolio investment.
Trends in International Business:-
- Growing emerging markets:-
- means a market economy that is in the process of becoming a developed economy. If business owners want to expand their business then they should invest in these markets.
- Population and demographic shifts:-
- is the main factor that influences the investment decision of business. A business should always choose their target customers correctly.
- Speed of innovation:-
- the pace of innovation is increasing as many companies are producing goods with the latest technology which automatically replaces the traditional way of producing the goods.
- More informed buyers:-
- consumers are more informed about the trends and latest technology and to access information about what to buy.
- Increased competition:-
- more businesses enter international markets, western companies will see increased competition. Western companies also have to keep ahead with faster and more effective innovation.
TIAS New Delhi