HBC 2305: International Business Management Notes

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Summary

LESSON 1
Overview
1.1. Learning Outcomes
Upon completing this topic, you should be able to;
• Define international business and distinguish it from domestic business
• Levels of international business
• Critical decisions in international business
1.2. Introduction
International business is a term used to collectively describe all commercial transactions and logistics that take place between two or more countries beyond their political boundary. For example, private companies undertake such undertake them for profit and for political. The term refers to all those business activities which involves cross border transactions of goods, services and resources between two or more nations. Transaction of economic resources include capital, skills, people, e.t.c. for international production of physical goods and services such as finance, banking, insurance, construction, e.t.c. It involves the simple extension of economic activities across national boundaries. It is thus a quantitative process, which leads to a more extensive geographical pattern of economic activity. Proper international management of activities requires that, organizational managers must have a wide variety of knowledge about markets they decide to enter. International business or global marketing is a human activity directed at satisfying wants and needs across borders. It consists of firms whose activities involve crossing the borders. This definition not only includes international trade (globalization) but also, the growing service industry. It can also be defined as focusing the resources and objectives of a firm on global or international opportunities. On the other hand, a a multinational enterprise (MNE) is a company that has a worldwide approach to markets and production, or one with operations in more than one country. A MNE can also be referred to as a multinational corporation (MNC) or transnational company (TNC).
Today business operations have become truly global with many innovations returning to their country or region of origin in a new form that expresses the tastes
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