International business management Essay

1. Regional desegregation Regional consolidation is a process in which states enter into a regional intellect in order to enhance regional cooperation through regional institutions and rules. The objectives of the discernment could range from economic to political to environmental, although it has typically taken the stool of a political economy initiative where commercial interests realise been the focus for achieving broader socio political and security objectives, as defined by national governments. Regional integration has been organized either via supranational institutional structures or through intergovernmental decision-making, or a combination of twain. Past efforts at regional integration founder often focused on removing barriers to free spate in the region, change magnitude the free movement of people, labour, goods, and capital across national borders, reducing the porta of regional armed conflict (for example, through Confidence and Security-Building Measure s), and adopting cohesive regional stances on policy issues, such as the environment, climate change and migration. 2. internalisation world(prenominal)ization is the process of acceptance of a set of norms and value conventional by people or groups which are influential to the individual through the process of socialization. John Finley Scott (1971) Also it basin be defined as a process through which we come to identify parts of our burnish as part of ourselves especially to norms and values.3. Internalization process In remote channel management describes the process in which the firm gradually becomes multiform in world-wide byplay and enters foreign market whereby the discussions and decisions on emergence of the domestic market and multinational market are made.The term worldwide usually refers to either an attitude of the firmtowards foreign activities or to tlie actual carrying emerge of activities abroad.*Of course there is a ciose relationship between attitude s and actuai behaviour.The attitudes are the priming for decisions to undertake planetary ventures and the experiences from international activities infiuence these attitudes. In the case descriptions we have to subdue on those aspects of the internationalization that are easy to observe, that is the international activities. We consider, however, these attitudes as kindle 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 harvest-festivals or go and the consumers leave aloneingness and ability to buy them. The number of people and the amount of their purchasing indicant are higher for the world as a whole than for a single country, so companies whitethorn increase their sales by stretching international business. Ordinarily, higher sales means higher profits, assuming to each angiot ensin-converting enzyme unit sold has the same markup. For example, the Star Wars cost millions of dollars to produce, but as more people see the films, the average increaseion cost per watchman decreases. So, increasing the sales will be major motive for a companys expansion into international business.5. Acquire ResourcesManufacturers and distributors seek divulge products, services and components produced in foreign countries. They also look for foreign capital, technologies, and study they can use at home. Acquiring resources may en fitted a company to better its product quality and differentiate itself from foes in both cases, potentially increasing market share and profits. Although a company may initially use domestic resources to expand abroad, once the foreign operations are in place, the foreign earnings may the serve as resources for domestic operations.6. Diversify Sources of Sales and SuppliesTo minimize swings in sales and profits, companies may seek out foreign markets to take advantage of business motorcycle recessions and expansions differences among countries. Sales decrease in a country that is in a recession and increase in one that is expanding scotchly. By obtaining supplies of the same product or component from different countries, companies may be able to fend off the full impact of price swings or shortages in any one country.7. Minimize Competitive RiskMany companies enter into international business for defensive reasons. They want to counter advantages competitors might gain in foreign markets that, in turn, could hurt them domestically. For example company A and company B compete in the same domestic market. Company. A may idolize that Company B will generate large profits from a foreign market if left alone to serve that market. Company B may then use those profits in various slipway (such as additional advertising or development of improved products) to improve its competitive position in the domestic market. Companie s harboring such a reverence may enter foreign markets primarily to prevent a competitor from gaining advantages.8. Controlling ExpensesEvery business wants to have low expenses so close to companies will therefore enter the global arena to minimize their costs. Companies will examine the resources they need 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. Business might choose to take advantage of cut labor costs, they might move manufacturing plants walking(prenominal) 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 just about of their resources from Japan might want to look into moving the company closer to Japan or they might have to look into finding a new place to get their resources. Thi s is known as outsourcing, meaning that a company will obtain something by contracting it from another source.9. variegationIn order to diversify a companys product line they may choose to enter a specific international market. This will apply to both a large scale international business along with a small company. Companies have a bridgehead in a number of countries so they dont have to depend on the economy of one country. Companies engaged in international business can nurture 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. CompetitivenessMany 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 neighbourhood video store is facing ambition from a larg er international company such as smash hit Video. A local store may have a express selection because of its small size but it may be able to offer more personal service, a more specialized fund or even lower prices. On the other hand, local businesses may find if difficult to compete with the selection and price that multinational companies can offer. If their businesses are too threatened, they may find wider markets or merge with a larger, possibly international company.International Business TheoriesAnalytical framework of International Business (IB) is built around the activities of MNEs enunciated by the process of internationalization (Kamwesara, 2010p.17). in the lead emergence of MNEs, Foreign trade and IB were regarded as synonymous and international trade doctrines based on labour cost differentials free trade manoeuvre the international transactions among trading partners. Several theories have been formulated which form the basis of international trade and FDI.