International business development.
Only an accurate perception of the reasons for the benefits of international operations will come to the understanding of the fundamentals and specifics of international business as an object for mutual actions with the international management. We are talking about the motivation of the entrepreneur or Manager that has passed a certain historical development of a civilization and, in particular, its economic core. So how was the international business development.
What is the essence of international business.
Historical and logical emergence of international business occurred in connection with the development and expansion of the international division of labour and in connection with the formation of the world market. International business is the interaction of organizations of different ownership forms or divisions of companies that are in different States, the purpose of which is to receive the income is at the expense of primary benefits of international operations in the sphere of business relations.
International business is an entrepreneurial activity that stems from the fact that capital is used in different forms and the benefits of high business activity, and there are for profit and extends to the international economy.
International business includes separazione economic operations which are carried out two or three or more States. Such business relationship can occur between commercial organizations, and between government agencies.
If international business involves commercial organization, all their activities are aimed at generating income, in contrast to state institutions, have usually a very different purpose.
If you consider international business from the perspective of international relations in the economic sphere, is a certain configuration of constituent entities of the interstate economic activity which is aimed at obtaining mutually beneficial cooperation.
The process of international business development is manifested in a special form of interaction between actors. This process has a particular structure, a particular technique, and also regulations and norms of conduct, outcomes and results to be achieved in the course of such interaction.
As subjects of international business are as an individual person, and the whole constructure that have internal motives, interests, goals and abilities to be implemented in any field of international economic activities.
The main features of the subjects of international business is the possession of inner motives, ambition, will and ability to advance their most important goals.
Under such characteristics of the subjects of international business are suitable for certain individuals, organizations, transnational institutions, international companies, unions, associations, countries.
International franchising as a form of product promotion in other countries.
The main features of international business.
1. With effective business to obtain income in the international business while expanding their opportunities outside the borders of the state.
2. The use by entrepreneurs of economic opportunities that arise from resource specificity of foreign markets, peculiarities of foreign laws, uniqueness political-economic relations, which are regulated by specific interactions at the international level.
3. International business is optional and depends on the degree of internationalization. The core of international business development has included periods of growth a certain degree of internationalization, ranging from single deliveries to a foreign market and ending with the civilized structure of transnational companies, for which world area, encompassing many States and markets, is the production and distribution.
4. In connection with the internationalization for different kind of business as accessible as possible to the global business service which does not depend on which state owned and is focused on the activity in the sphere of economy, as well as the efficiency of various services: scientific, financial, transport, services of selection of the international team, allowing to carry out the business opportunities.
5. You need to consider in building a business cultural factor, namely the requirements and restrictions of the culture of a certain state imposed on the contractor business. The problem is that often the culture of the state of domicile is very different from the culture of the state in which the company resides.
6. International business is a global coverage of the global system of information exchange, the global financial market, the bulk structure of innovative technologies, etc. there is a movement from one level of internationalization to another and, accordingly, the direction of globalization is increasing the efficient conduct of business.
7. International business is a set of professional knowledge and skills to a much greater extent than those that are in the business of the country.
8. International business absorbs the best of the entire world practices.
9. The most important resource for international business information is the and most important weapon – adaptation.
10. An important difference between international business from the national business is the fact that the negative trends in the economy of the state or in a sector of the economy can help to show the company’s new business opportunities.
11. Within the state, great competition, and state aid is not clearly visible, whereas in the international business, you can feel the support of his country in the fight against competitors.
How was the international business development in the world.
1. Era of Commerce (1500 – 1850
The trade of colonial goods in Europe was a powerful and influential force on determining more than 300 years of development the main form of international business. Such a business, especially in the XVI-XVIII centuries were very risky, as it was linked to dangerous travel by sea over long distances. Was a powerful incentive for entrepreneurs to earn income many times in excess of their costs. This first international business has attracted generations of traders. Simultaneously with inter-state trade was financed and insured the shopping trip that became a historical reference point for the development of business services such as investment and insurance. Powerfully developed industry in Europe, ranging from shipbuilding, metal processing and finishing, processing foreign raw materials.
In the era of Commerce of the distinctive features of international business were two main factors.
First, it is the government’s ability to affect business relations between countries that lead to the efficient conduct of business of interstate companies. As an example, Japan, which is in the middle of the XVII century completely isolated themselves, and in Russia until the reign of Peter I a striking example is the prohibition or restriction of trade by foreign merchants.
Second, it provided state support to its entrepreneurs in building business outside the country’s borders.
2. The era of expansion (1850-1914.
At a time when Europe industrialized powerfully developed, the colonial Empire was finally formed and structured. All this, as well as the volume of industrial production made to turn the civilized Nations from trade of foreign goods to the production of raw materials and other promising, in terms of the economy, sectors of international business.
In order to develop industrial production of raw materials, the necessary investments in this sector. In parallel was the growth of colonial government.
In Europe intensive international business development initiated a revolution in the field of industry and the era of mass production. There were States that produce manufactured goods and state trading in these commodities. This inter-state division of labor was due to the difference in the rate of development of the countries of Europe, with differences in availability of certain natural resources, with different levels of education of the European population and other factors.
As a result, enterprises and their branches in the sphere of production developed rapidly in foreign countries. The development of international transport and financial services. For example, in Russia in 1879 was opened a branch of the Bank Credit Lyonnais.
The development of international business in the era of expansion was an accurate reflection of all the main reasons of its existence, which are relevant in modern times. It is possible.
This period is characterized by the changing role of the largest firms which operated in the colonial trade. Such major firms concessionaires have become independent economic microstates, which carried out many functions such as commercial, industrial, medical, transportation, educational and even police officers. These functions were often carried out not only within workers but also in the neighboring areas.
There are certain periods in the relations of international business in non-colonial region. The period of the First world war, which culminated in the defeat of Germany, leading to the redistribution of the world market; and the great depression of 1929-1932, which was focused on the question of the effectiveness of international business development using the internationalization of human resources.