International Business

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International Business

 

International BUSINESS

International business is a process of marketing goods and’ services in the international market. Exploring marketing opportunities in the overseas market is the primary objective of export marketing. Exporters should study emerging markets and adapt products to fulfill the specific needs of the overseas customers. Alan M: Rugman and Richard M. Hodgetts have defined International Business as “The study of transactions taking place across national borders for the purpose of satisfying the needs of individuals and organisations. International marketing deals with the transactions that take place between the citizens and corporate of different countries. 

 

INTERNATIONAL MARKETING ENVIRONMENT·

International market is a competitive market. It is influenced by not only demand arid ‘supply forces of goods’ and services, but also various marketing environmental’ factors. In ‘international market consumers from different countries’ buy the products they desire and marketers from different countries sell their products they produce Japan dominates in electronics and automobiles in the global market. The United States have become leader in information technology, China; Philippines and’ Taiwan are potential competitors ‘to textiles exporting countries: South Korean’ companies have entered into Indian market and try to capture with goods market of India. South Korean companies do their business ‘globally.

In global shipbuilding industry, Haundai Heavy Industries (HHI) of South Korea stands first The HHI has secured a place in the Guinness Book of World” Records for its ‘ship building activities. All countries are not Competitive in all type of products in the international market.

 

CONCEPT OF BUSINESS ENVIRONMENT

Business environment is the ‘sum total’ of forces and factors ·that are external to the business and which influence the business in a variety of spheres. Production technology, financing means, personnel systems, marketing efforts and public relations activities, of a business are all influenced by the environmental factors. In a country with restriction on import of labour-saving technologies, production technologies; remain mostly labour-intensive. With risk and venture capital available in plenty, businesses assume more risk and enter into hi-tech unnavigated areas. With abundant labour supply in a country businesses benefit by inexpensive labour, but trade unionism might pose challenge t6 the’ businesses. Price restrictions, market” demareations and distributional limitations might be suffered by businesses operating, in a highly restrictive society.

Thus business environment refers to the totality of politico-legal systems, the socio-cultural, systems, ,the techno-infrastructural system, the geo-natural systems, the economic systems, the, demographic entrepreneurial systems and the functioning of other businesses in relation ,to a particular business as competitors, as suppliers, as consumers and the like.

Business environment can be seen bifocals – the immediate and the distant or as the micro and the macro. The immediate’ or macro environment refers to the firm-specific environmental factors. The ‘macro or the ‘distant’ environment refers to ‘the general environmental factors generally, firm ­specific environmental factor are due to location and, geo-natural factors. Hotel industry in an industrial, City, has round’ the year business with occasional ‘ebbs and troughs, while the same industry’ in hill resort he has only seasonal business, with economic, cultural and political dimensions prevailing in the international market determine the level of competitiveness of the countries participate in the international market. International business E.nvirol’L’i1ent should be carefully studied to assess, the role of economic, cultural and political dimensions in international market.’ the extent of international market of a company depends upon the economic cultural and political roots of int~rnatioria1 marketing system and it becomes essential to study their importance in international marketing. The various dimensions of international marketing systems are given below. Occasional demand in the off-season. Thus locational and go-natural forces are mostly firm specific, But economic fiscal and monetary policies, political ideologies ‘and systems, etc are macro affecting’ all businesses mostly alike. A reduction ‘in interest rate inflow of foreign capital and the like are macro environmental factors.

Business environment is also classified ‘into market and ,non-market environment. When a business’s operations are influenced by market forces like demand, supply, consumer fashion, extent of competition among firms in the industry, etc., it is said that market environmental factors are dominant in so far as the business is concerned. Non-market environment refers to governmental policies and programmers, social values and cultural practices and the like.

Business environment in another perspective is divided into ‘economic’ and non-economic environment. Economic environment refers to the economic systems, economic policies including the fiscal, monetary, labour and sectoral policies adopted, the trends and currents ‘of the national economic factors and variables” economic peculiarities and problems’ and prospects state of the economic developments, economic legislations and the like that affect businesses in general and specially. Non-economic environment refers to the rest of the environmental factors viz., social, cultural, political, marketing, technological ecological and others. But economic environmental forces and non-economic environmental factors influence one another and the resulting environment influences business in the domestic and International market.