International business management Essay

1. Regional integration Regional integration is a work on in which states compute into a regional agreement in devote to enhance regional cooperation through regional institutions and rules. The objectives of the agreement could range from scotch to political to environmental, although it has typically taken the form of a political thrift initiative where commercial interests have been the focus for achieving broader socio political and security objectives, as defined by national governments. Regional integration has been organized both via supranational institutional structures or through intergovernmental decision-making, or a faction of both. Past efforts at regional integration have often rivet on removing barriers to free trade in the region, change magnitude the free deed of concourse, labour, goods, and capital across national b readys, reducing the possibility of regional gird conflict (for exemplar, through Confidence and Security-Building Measures), and adoptin g cohesive regional stances on polity issues, such as the environment, climate change and migration. 2. InternalizationInternationalization is the cover of acceptance of a set of norms and value established by community or groups which are influential to the individual through the help of socialization. lav Finley Scott (1971) Also it washstand be defined as a process through which we come to identify activates of our culture as part of ourselves especially to norms and values.3. Internalization process In world-wide business focal point describes the process in which the firm gradually becomes involved in planetary business and enters foreign foodstuff whereby the raillerys and decisions on development of the domestic securities industry and international market are made.The term international usually refers to both an attitude of the firmtowards foreign activities or to tlie certain carrying bug out of activities abroad.*Of course thither is a ciose relationship between attitudes and actuai behaviour.The attitudes are the basis for decisions to undertake international ventures and the experiences from international activities infiuence these attitudes. In the case descriptions we have to concentrate on those aspects of the internationalisation that are easy to observe, that is the international activities. We consider, however, these attitudes as interesting and important and the discussion of the internationalization process is basically an account of the interaction between attitudes and actual behaviour4. Expand SalesCompanies sales are dependent on two factors the consumers interest in their products or services and the consumers willingness and ability to secure them. The number of people and the amount of their purchasing power are higher(prenominal)(prenominal) for the world as a whole than for a single country, so companies whitethorn growth their sales by reaching international business. Ordinarily, higher sales means higher pr ofits, assuming each unit interchange has the same markup. For example, the Star Wars cost millions of dollars to produce, but as to a greater extent people see the films, the average production cost per viewer slacks. So, increasing the sales will be major motive for a companys expansion into international business.5. Acquire ResourcesManufacturers and distributors seek out products, services and factors produced in foreign countries. They also look for foreign capital, technologies, and information they can employment at home. Acquiring resources may enable a company to change its product quality and differentiate itself from competitors in both cases, possiblely increasing market share and profits. Although a company may initially practice session domestic resources to expand abroad, once the foreign operations are in come to the fore, the foreign earnings may the serve as resources for domestic operations.6. vary Sources of Sales and SuppliesTo minimize swings in sales and profits, companies may seek out foreign markets to take advantage of business cycle recessions and expansions differences among countries. Sales decrease in a country that is in a recession and increase in one that is expanding economically. By obtaining supplies of the same product or component from different countries, companies may be able to avoid the full electrical shock of price swings or shortages in any one country.7. Minimize competitive RiskMany companies enter into international business for defensive reasons. They ask to counter advantages competitors susceptibility gain in foreign markets that, in turn, could cause to be perceived them domestically. For example company A and company B compete in the same domestic market. Company. A may fear that Company B will generate large profits from a foreign market if left alone to serve that market. Company B may thus use those profits in various ways (such as special advertising or development of improved products) t o improve its competitive spot in the domestic market. Companies harboring such a fear may enter foreign markets primarily to pr veritable(a)t a competitor from gaining advantages.8. Controlling Expenses all business wants to have low expenses so some companies will indeed enter the global arena to minimize their costs. Companies will examine the resources they require and where they can get them at the lowest price. By searching outside of their own borders, companies hope to find more economical solutions to the production and manufacturing problems they have. disdain susceptibility choose to take advantage of lower labor costs, they might move manufacturing plants closer to natural resources, invest in new and more efficient technology, or profit from another countries innovations or tax structures.For example a company that is located in Toronto that gets most of their resources from Japan might want to look into moving the company closer to Japan or they might have to loo k into finding a new place to get their resources. This is known as outsourcing, meaning that a company will obtain something by contracting it from another source.9. DiversificationIn order to diversify a companys product line they may choose to enter a specific international market. This will get into to both a large scale international business along with a teeny-weeny company. Companies have a foothold in a number of countries so they dont have to depend on the economy of one country. Companies engaged in international business can protect their investments and their markets by dealing with countries in a variety of countries. A recession in one county wont have a huge effect if business is doing well in another country.10. battleMany companies expand globally for defensive reasons to protect themselves from competitors or potential competitors, or to gain advantage over them. In todays business environment, even a small business is competing with international businesses. A n eighbourhood video store is facing competition from a big international company such as Blockbuster Video. A topical anesthetic store may have a limited selection because of its small size but it may be able to offer more personal service, a more specialized stock or even lower prices. On the other hand, local businesses may find if hard-fought to compete with the selection and price that multinational companies can offer. If their businesses are similarly threatened, they may find wider markets or merge with a larger, possibly international company.International Business TheoriesAnalytical framework of International Business (IB) is make around the activities of MNEs enunciated by the process of internationalization (Kamwesara, 2010p.17). Before emergence of MNEs, external trade and IB were regarded as synonymous and international trade doctrines based on labour cost differentials free trade guided the international transactions among trading partners. Several theories have been formulated which form the basis of international trade and FDI.