In this programme , we will develop entrepreneurship competencies for creating a new business and leading its growth to international market. The exchange of goods and services in middle of individuals and business in multiple countries. It is specific entity, such as multinational Corporation or international business company that engages in business among multiple countries. International business engages in multiple countries in business, resulting from economic interdependence among the countries. International business use of multiple currencies in exchange with international currency.
International business increases opposition in domestic markets and introduces new opportunities to foreign markets. Global competition console 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.
International Business and Entrepreneurship
International entrepreneurship is the process of an entrepreneur conducting business activities beyond national boundaries. It may consist of exporting, licensing, opening a sales office in another country, subsidiaries, manufacturing or joint ventures and development of the business. International entrepreurship play an important role in determining relationship that survive among different countries and sub subsequently affects international business. International divisions are determining by a broad scope of factors that are primarily by social, political, economic and to some area geographic component. The diversity in social and economic aspect among different countries plays an important factor in resolve the international trade trends between unlike countries and regional alliances and sometimes influences intercontinental trade.
An export department or export subsidiary may be worthy for handling huge exports but they may not be equal for managing the non-exporting international market entry modes. So companies having foreign subsidiaries whose part is not limited to sales alone tend to set up an international division to manage the international business.
Challenges of International Business and Entreneurship
Communication difficulties and cultural differences
Both large and small businesses often have a worldwide reach. If we have foreign clients, purchase raw materials abroad or lead tours internationally, cultural differences and communication complication can cause misunderstandings that impair the company’s bottom line intercultural communication is a huge topic. There will be the always problem in the language, signs and symbol. The mindset of people is different cultural.
Cultural diversity makes communication difficult.
Currency values become difficult to fluctuate depending on several factors including a nation’s economic activity and growth prospects, interest rates and geopolitical risk. When currencies fluctuate broad, we can create economic unpredictability and instability, influencing capital flows and international trade.
International accounting is also one of the challenges of the main legal areas to continue when it comes to doing international business, tax compliance is perhaps the most of great importance. International accounting can present a challenge to multinational businesses that may be responsible by law for corporation tax abroad. Different tax system, rates and the action of requirement can make the accounting function of multinational organization significantly on testing one’s abilities.
Cost calculation and global pricing strategy
Cost calculation and global pricing planning , surrounding the price for the product and services can present demanding when doing business to a foreign country, especially one expressing position the sea and it should be another major careful thought of the strategy. We must consider costs to remain competitive, while still long lasting profit. Verifying the prices of direct, local- market competitors to give a benchmark; however, it remains necessary to make certain the math still works in our support. For instance, the cost of production and shipping, labor, marketing and distribution, as well as our edge, must be a taken into account for the business make possible to do easy.
Foreign laws and regulations
Extended with getting our company arrangement in place a large scope of understanding the local laws and regulation governing our target markets is key. From tax action through to trading laws, navigating legal requirement is central function for any successful international business. Selected to trade is a significant consideration, as are potentials tariffs and the legal costs connected with entering new markets.
An obvious risk for international business is political uncertainty and instability. Countries and emerging markets that may offer considerable opportunities for expanding global businesses may also pose challenges, which more established markets do not. The political risk may be wars, sustained civil unrest and major acts of terrorism.
Worldwide environmental issues
Movements of internationally of goods and services have the significant of environment consequences. Economic growths resulting from trade become larger of action that can have an obvious direct impact on the environment by increasing pollution or degrading natural resources. Similarly trade and investment liberalization can provide firms with incentives to adopt more requirement environment standards.
Key opportunities International Business and Entreneurship
Information technology is important to global business is also the opportunity in international business. IT can make businesses able to have a clear communication within the companies in different countries, better flow of goods and services from one place to another place. Supply chain management and marketing of the product will also be effective.
Import and export
Transferring the goods out of our country in order to sell them in another country is export so as the bringing the goods into the country from another country in order to sell them is import by this there will be a good relation between home country and host country.
Expansion of global market
Because of the expansion of global market, there will be the increase in business growth. Faster growth for businesses that allows markets to entering the overseas. It extends the business global footprint, new audience’s experience of the product and services.
World economic boom
Experts say the word economy is passing through an extensive phase. The economic boom has offered intensity potential of growth to business the world over. Moreover, most of the countries around the world have started the economic in order to improve liberalize their economics. As the economy improves, the families become more confident. They are marked by better jobs, rising home prices and a good return on investment.
Contract manufacturing and outsourcing
There will be the opportunity that the firm’s product is produced in foreign market by local producer under contact with the firm. Because the contract covers only manufacturing, marketing is handled by sales subsidiary of the firm which keeps the market control. Outsourcing include supply chain management, research design, customer support, engineering human resources management and so on
In conclusion it can be said that, international business and entrepreneurship leads to economic growth provided the policy measures and economic infrastructures are sufficient space for enough to cope with the changes in social and financial scenario that result from it. In order to face the cross border competition demand, a well-functioning, national opposition regime is insufficient.
International business and entrepreneurship opens up the opportunity for develop countries whereby it increases their capacity to produce and obtain goods. It should however be controlled so as to keep away the shutdown of some local companies.
i. International business (environment and strategies) written by Dr.Arhan Sthapit
ii. International Business and Entrepreneurship (April2, 2019)