DOMESTIC VERSUS INTERNATIONAL BUSINESS

International business has been the outgrowth of domestic business.  Almost every big corporation such as Honda, Mitsubishi and Toyota began their operations in the domestic market before expanding into the international market.

INTERNATIONAL COMPANIES

 Companies that do business across borders face a specific set of challenges and opportunities that domestic companies do not. While each business is unique, all of them must confront many of the same challenges. As such, these companies have developed a few standard ways of managing risks and doing business internationally.

MOTIVES FOR INTERNATIONALIZATION

 Dunning introduced a model of internationalization motives including four different categories of motives. These categories are market seeking, resource seeking, efficiency seeking and strategic resource seeking motives and network seeking motives.

INTERNATIONAL MARKETING DECISIONS

The firms engaged in international business have to make different types of decisions. Some of the important decisions are described as follows:

GROWTH OF INTERNATIONAL BUSINESS

There are a number of reasons for expansion of international business
 

WHY COMPANIES ENGAGE IN INTERNATIONAL BUSINESS?

Answer: Daniels and Radebaugh have given four reasons why companies engage in international business. They emphasized that a company operating internationally should consider its mission, its objectives and strategy. The four reasons are:

ORIENTATIONS OF INTERNATIONAL ORGANIZATIONS

Perlmutter identified distinctive "orientations" of management of international organizations. His "EPRG" scheme identified four types of attitudes or orientations associated with successive stages in the evolution of international operations.

INTERNATIONALIZATION OF BUSINESS

 The internationalization of business involves the following stages:   Domestic Company: Most international companies have their origin as domestic companies. The orientation of a domestic company essentially is ethnocentric. A purely domestic company “operates domestically because it never considers the alternative of going international.

INTERNATIONAL BUSINESS- INTRODUCTION

 International business involves exports and imports. International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International Business is also known, called or referred as a Global Business or an International Marketing.