International Business conducts the business transactions all over the world. these transactions include the private and government, sales, investment, logistics and transportation, that take place between two or more regions, countries and nations beyond their political boundaries. The international business refers to all those business activities which involve cross -border transactions of goods, services, technology, resources, managerial knowledge, between two or more countries. Transactions of economic resource include capital, skills, people etc. International business involves exports and imports.
International global market significant growth lies in business expansion. If you enhance your business in different countries, you get access to faster growing economies than the U.S. and you lessen your dependency on a single market. Because international expansion involves selling the product in different countries, languages, cultures, ans regulations. But it is not possible for a small business with limited resource to locate their business in another countries.
The American market for almost everything is enormous, but it,s not large enough for many businesses. For these growth minded business owner, rest of the world they are seeking the international growth by going global as an importer -exporter offers opportunity aplenty.
If you doing the global business around the world can seem a long way from doing business in your hometown. But each year countless small businesses make the trek. Like most journeys, going global ca be boiled down to a series of steps . Here are the six basic steps to going global.
- Start your campaign to grow by international expansion by preparing an international business plan to evaluate your needs and set your goals. It’s essential to assess your readiness and commitment to grow internationally before you get started.
- Conduct foreign market research and identify international markets. The Department of Commerce is and excellent source of information on foreign markets for U.S. goods and services.
- Evaluate and select methods of distributing your product abroad. You can choose from a variety of means for distributing your product, from opening company-owned foreign subsidiaries to working with agents, representatives and distributors and setting up joint ventures.
- Learn how to set prices, negotiate deals and navigate the legal morass of exporting. Cultural, social, legal and economic differences make exporting a challenge for business owners who have only operated in the United States.
- Tap government and private sources of financing-and figure out ways to make sure you are getting paid. Financing is always an issue, but government interest in boosting exporting and centuries of financial innovation have made getting funding and getting paid easier than ever.
- Move your goods to their international market, making sure you package and label them in accordance with regulations in the market you are selling to. The globalization of transportation systems helps here, but regulations are still different everywhere you go.