Portfolio of Ibm

Executive summary : Introduction to International Business Management

Summary Outline:

• Definition and meaning of International Business

• Difficulties & Benefits of International business

• Understanding & Analyzing the framework of International Business

? Definition and meaning of International Business

One of the most dramatic and significant world trends in the past two decades has been the rapid and sustained growth of International Business.

International Business includes any type of business activity that crosses national borders. There are however many definitions of International Business and according to one end of the definitional spectrum, International Business is defined as organization that buys/sells goods and services across two or more national boundaries, even if management is located in a single country.

At the other end of the spectrum, International Business is equated with those big enterprises which have operating units outside their own country.

? Difficulties & Benefits of International Business

What makes international business strategy different from the domestic are the differences in the marketing environment. The important problems are listed below-

Difficulties:

• Political and Legal differences

• Cultural differences

• Economic differences

• Differences in language

• Differences in marketing infrastructure

• Trade restrictions

• High costs of distance

Benefits:

• Survival

• Growth of overseas market

• Diversification

• Increase standard of living

? Framework for analyzing International Business Environment

Analysing the framework of International Business Environment can be done through the analysis of the:

• Micro environment

• Macro environment

Micro environment:

The micro environment consists of the actors in the company's immediate environment that affects the performance of the company.

These include the suppliers, competition,