Understand the importance of International Business

International business is all about, governmental and private commercial transactions, involving two or more countries. Why should one be interested in studying international business? The simple answer is that international business comprises a large and growing portion of total business in the world. Today, almost all companies, large or small, are affected by global events and competition because most sell output and / or secure suppliers from foreign countries and / or compete with products and services from abroad.

Other companies that perform some form of international business are involved in export and import and any other type of commercial transaction. Many experts on international affairs argue that the export is a logical process with a natural structure, which can be seen primarily as a method to understand the environment in the country of destination, using the appropriate mix of marketing, developing a marketing plan based on the use of the mix, implementing a plan through a strategy and, finally, using a control method to ensure the strategy is respected. This export process is reviewed and evaluated regularly and changes are made to use the mix to take account of market changes that affect competitiveness. This view seems to suggest that much of the theory of international trade in relation to companies, which are internationally based and have global ambitions, do not change often depending on the specific needs of each country.

Another key issue is the growth of society and the importance of networking and interaction. This overview examines the way in which companies and organizations interact and consequently network with each other to obtain a commercial advantage on world markets. The network may be using subcontractors or similar components, sharing research and development costs or operating within the same governmental structure. Clearly, when businesses formulate a trading block with no internal barriers that are actually creating their own networks. Collaborations in aerospace, vehicle manufactures and engineering have sponsored the development of a country or a group of prospects of countries according to their network of domestic market. This network and interaction approach to internationalization shows the substance to be able to influence decisions by knowing how the global network players work or interact.

For example, a market network is crucial that of the Middle East. Middle East countries are rich, diverse markets, with a lively and varied cultural heritage. This means that, although there was a process of harmonization over the past years, the differences still exist. Rather than economic, it is easier as a result, it is recognized that, due to regulations and the need for restructuring in these countries entering the global market, to perform any type of activity can be very complex. It should be noted however that the countries of the Middle East have a low average income and like to have their cultural differences recognized. Those companies that will or have recognized these facts have a good chance of developing a successful marketing strategy to meet their needs. Fortunately, some companies have realized these important differences and reacted adequately when strategic decisions had to be made regarding their penetration in this market .......