INTRODUCTION
TO
INTERNATIONAL
BUSINESS
The beverages you drink might be produced in India, but
with the collaboration of a USA company. The tea you
drink is prepared from the tea powder produced in Sri
Lanka.
The spares and hard disk of the computer you operate
might have been produced in the United States of
America.
The perfume you apply might have been produced in
France. The television you watch might have been
produced with the Japanese technology. The shoe you
wear might have been produced in Taiwan, but remarketed
by an Italian company. Air France and so on so forth might
have provided your air travel services to you.
You get all these even without visiting or knowing the
country of the company where they are produced. All these
activities have become a reality due to the operations and
activities of international business.
Thus,
International business is the process of focusing on
the resources of the globe and objectives of the
organizations on global business opportunities and
threats.
EVOLUTION OF INTERNATIONAL
BUSINESS
The term international business was not in existence
before two decades.
The term international business has emerged from the
term international marketing, which in turn, emerged
from the term ‘export marketing’
International Trade to International Marketing:
Originally, the producers used to export their products to
the nearby countries and gradually extended the exports
to far-off countries.
Gradually, the companies extended the operations beyond
trade. For example, India used to export raw cotton, raw
jute and iron ore during the early 1900s.
The massive industrialization in the country enabled us to
export jute products, cotton garments and steel during
1960s.
International Marketing to International Business:
The multinational companies which were producing the
products in their home countries and marketing them in
various foreign countries before 1980s, started locating
their plants and other manufacturing facilities in
foreign/host countries.
Later, they started producing in one foreign country and
marketing in other foreign countries. For example, Uni
Lever established its subsidiary company in India, i.e.,
Hindustan Lever Limited (HLL). HLL produces its
products in India and markets them in Bangladesh, Sri
Lanka, Nepal etc.
Thus, the scope of the
International trade is expanded into
International marketing and
International marketing is expanded into
International business.
