Question

please give respond to that post. thank you.

The abundance in the factors of production has been viewed for centuries among all nations. When countries want to grow, they seek factors of production that will help them export. When they are then more stable and have gained more wealth, then they begin to seek increased trade with other nations to compliment their own resources.

Answer 1

Kindly state the required question as well. You have not asked anything in the question.

I’ll still provide you some information related to the statements you have mentioned.

International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries.

The study of international business involves understanding the effects that the above activities have on domestic and foreign markets, countries, governments, companies, and individuals. Successful international businesses recognize the diversity of the world marketplace and are able to cope with the uncertainties and risks of doing business in a continually changing global market.

The challenging aspect of international business, however, is that many firms combine aspects of both multi-domestic and global operations:

Multi-domestic – A strategic business model that involves promoting products and services in various markets around the world and adapting the product/service to the cultural norms, taste preferences and religious customs of the various markets.

Multinational – A business strategy that involves selling products and services in different foreign markets without changing the characteristics of the product/service to accommodate the cultural norms or customs of the various markets.

The Benefits of International Business

Participation in international business allows countries to take advantage of their comparative advantage.

The concept of comparative advantage means that a nation has an advantage over other nations in terms of access to affordable land, resources, labor, and capital. In other words, a country will export those products or services that utilize abundant factors of production. Further, companies with sufficient capital may seek another country that is abundant in land or labor, or companies may seek to invest internationally when their home market becomes saturated.

Participation in international business allows countries to take advantage of specialized expertise and abundant factors of production to deliver goods and services into the international marketplace. This has the benefit of increasing the variety of goods and services available in the marketplace.

International business also increases competition in domestic markets and introduces new opportunities to foreign markets. Global competition encourages companies to become more innovative and efficient in their use of resources.

For consumers, international business introduces them to a variety of goods and services. For many, it enhances their standard of living and increases their exposure to new ideas, devices, products, services, and technologies.

The Growth of 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. Some of the significant elements that have advanced international business include:

• The formation of the World Trade Organization (WTO) in 1995
• The inception of electronic funds transfers
• The introduction of the euro to the European Union
• Technological innovation that facilitates global communication and transportation
• The dissolution of a number of 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. 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.

The Challenges and Considerations of International Business

Because nation-states have unique government systems, laws and regulations, taxes, duties, currencies, cultures, practices, etc. international business is decidedly more complex that business that operates exclusively in domestic markets.

The major task of international business involves understanding 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. However, the diversity between nations presents unique considerations and a plethora of hurdles, such as:

• National wealth disparities: Wealth disparities among nations remain vast.
• Regional diversity according to wealth and population: North America is home to just 5 percent of the world’s population, yet it controls almost one-third of the world’s gross domestic product.
• Cultural/linguistic diversity: There are more than 10,000 linguistic/cultural groups in the world.
• Country size and population diversity: There were about 60 countries at the start of the twentieth century; by 2000, this number grew to more than 200.

Some of the challenges considered by companies and professionals involved in international business include:

Competitive Environment

The competitive environment is constantly changing according to the economic, political, and cultural environments. Competition may exist from a variety of sources, and the nature of competition may change from place to place. It may be encouraged or discouraged in favor of cooperation, and the relationship between buyers and sellers may be friendly or hostile. The level of technological innovation is also an important aspect of the competitive environment as firms compete for access to the newest technology.

To ensure success in a foreign market, international businesses must understand the many factors that affect the competitive environment and effectively assess their impact.