Lecture 3 - Introduction To International Business Trade

INTERNATONAL BUSINESS TRADE
ACG012
INTERNATIONAL BUSINESS
TRADE
LECTURE WEEK 1
INTERNATIONAL BUSINESS
Business activities done across national borders is International
Business. The International business is the purchasing and
selling of the goods, commodities and services outside its
national borders. Such trade modes might be owned by the
state or privately-owned organization.
In which, the organization explores trade opportunities outside its
domestic national borders to extend their own particular business
activities, for example, manufacturing, mining, construction,
agriculture, banking, insurance, health, education,
transportation, communication and so on.
International business is consisted of devised transactions in
advance, which are implemented through national borders, in
order to satisfy the needs of individuals, companies and other
businesses. International business actually links all countries,
institutions and individuals.
Things to consider in International Business
• Identify goals and objectives to be placed on the international
market.
• Determine the target countries and the possibilities of selling
products and services in these countries.
• To assess what profit to gain from selling of its products and
services on the markets in selected countries.
International business is realized within the process of
globalization of business which actually means increasing
international integration and manufacturing processes and
international market for goods and services. It refers to realizing
processes of liberalization of national economies, reducing trade
restrictions or barriers, free movement of foreign direct investment
worldwide, strengthening the role of international companies in the
international production and mutual trade and exchange.
World Trade Organization established by the administration of
various nations is one of the major contributory factors to the
expanded connections and the business relationship among the
countries. Nations that were away from each other, because of
their geological separations and financial and social contrasts are
now connecting with each other
The national economies are dynamically getting borderless and
fused into the world economy as it is clear that the world has
today come to be known as a ‘global village’. Numerous more
organization are making passage into a worldwide business
which presents them with opportunities for development and
tremendous benefits.
Benefits of International Business
Benefits to Nation
 It encourages a nation to obtain foreign exchange that can be

utilized to import merchandise from the global market.
 It prompts specialization of a country in the production of
merchandise which it creates in the best and affordable way.
 Also, it helps a country in enhancing its development
prospects and furthermore make opportunity for employment.
 International business makes it comfortable for individuals to
utilize commodities and services produced in other nations
which help in improving their standard of life
Benefits of International Business
International Business is important to both Nation and Business

organizations. It offers them various benefits.
Benefits to Nation
• It encourages a nation to obtain foreign exchange that can be

utilized to import merchandise from the global market.
• It prompts specialization of a country in the production of
merchandise which it creates in the best and affordable way.
• Also, it helps a country in enhancing its development prospects
and furthermore make opportunity for employment.
• International business makes it comfortable for individuals to
utilise commodities and services produced in other nations which
Benefits to Firms
• It helps in improving profits of the organizations by selling

products in the nations where costs are high.
• It helps the organization in utilizing their surplus resources and
increasing profitability of their activities.
• Also, it helps firms in enhancing their development prospects.
• International business also goes as one of the methods for
accomplishing development in the firms confronting extreme
market conditions in the local market.
• And it enhances business vision as it makes firms more
aggressive, and diversified.
GLOBALIZATION OF INTERNATIONAL BUSINESS
Globalization refers to growth of global connectivity, integration

and interdependence of economic, social, technological, cultural,
political and environmental spheres.
Globalization is a notion or common term which best explains the
processes of economic interdependence the growing influence of
culture, great advantages of information technology and new
geopolitical changes that lead to bringing people together in a
global system. Regarding globalization it can me noted that it
represents an internationalization regarding different
countries.
Economical globalization can be measured in different manners;
nevertheless those measurements target four economic trends that
it features:
 movement of goods and services and increase of the national
income per capita;
 increased employment - movement of the population may result
in better employment, if not in person’s home country it may be
realized in other countries;
 movement of capital as direct investments;
 technology development as a result of the flow of international
research and development and investment.
Globalization is about the increase in the processes of economic
integration worldwide and everything is actually achieved through
trade and financial flows.
The notion of globalization is linked to the movement of people,
labor and knowledge (technology) across international borders.
Also, there are broad dimensions of globalization pertaining to
culture, political and environmental aspects.
REFERENCES
• International Journal of Sciences: Basic and Applied Research (IJSBAR)(2017) Volume 31, No 3,
pp 105-114 - 107

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INTERNATONAL BUSINESS TRADE

 It encourages a nation to obtain foreign exchange that can be

International Business is important to both Nation and Business

• It encourages a nation to obtain foreign exchange that can be

• It helps in improving profits of the organizations by selling

Globalization refers to growth of global connectivity, integration

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