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ENTREPRENEURSHIP

Topic
INTERNATIONAL VERSUS DOMESTIC
ENTREPRENEURSHIP

Submitted To: Madam Ayesha


Submitted By: M.Sohail Tariq
Commerce Department
M.Com (Evening)
Section: B
Roll No.4603
June 17, 2010

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Government College University


Faisalabad

TABLE OF CONTENTS

1) THE NATURE OF INTERNATIONAL ENTREPRENEURSHIP 02

2) THE IMPORTANCE OF INTERNATIONAL BUSINESS TO THE FIRM 02

3) INTERNATIONAL VERSUS DOMESTIC ENTREPRENEURSHIP

02

3.1) Economics 03

a. Balance of Payments 03

b. Type of System 03

3.2) Political-Legal Environment 04

3.3) Cultural Environment 04

3.4) Technological Environment 04

3.5) CRESCENT JUTE PRODUCTS LIMITED (CJPL) 05

3.6) QUESTIONAIR 05

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THE NATURE OF INTERNATIONAL


ENTREPRENEURSHIP:
As more countries become market oriented and developed, the

distinction between foreign and domestic markets is becoming less

pronounced. International entrepreneurship is the process of an entrepreneur

conducting business activities across national boundaries. It is exporting,

licensing, or opening a sales office in another country. When an entrepreneur

executes his or her business in more than one country, international

entrepreneurship occurs.

THE IMPORTANCE OF INTERNATIONAL


BUSINESS TO THE FIRM:
International business has become increasingly important to firms of all

sizes. The successful entrepreneur will be someone who understands how

international business differs from domestic business and is able to act

accordingly.

INTERNATIONAL VERSUS DOMESTIC


ENTREPRENEURSHIP:
Whether international or domestic, an entrepreneur is concerned about

the same basic issues-sales, costs, and profits. What varies is the relative

importance of the factors being considered. International entrepreneurial

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decisions are more complex due to uncontrollable factors such as the

following.

Economics:

A domestic business strategy is designed under a single economic

system. Creating a business strategy for multiple countries means dealing

with different levels of economic development and different distribution

systems.

Balance of Payments:
A countrys balance of payments affects the valuation of its currency.

This economic variable will affect how companies do business in other

countries.

Type of System:
Types of System Barter or third-party arrangements have been used to

increase business activity with the Commonwealth of Independent States, the

former U.S.S.R. There are still many difficulties in doing business in

developing and transition economies due to:

a. Gaps in the knowledge of the Western system regarding business

plans, marketing, and profits

b. Widely variable rates of return.

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c. Non-convertibility of the ruble.

d. Differences in the accounting system.

e. Nightmarish communications.

Political-Legal Environment:
Multiple political and legal environments create different business

problems. Each element of the international business strategy can potentially

be affected by multiple legal environments. Laws governing business

arrangements also vary greatly in the 150 different legal systems and sets of

national laws.

Cultural Environment:
The impact of culture on entrepreneurs and strategies is significant.

Understanding the local culture is necessary when developing worldwide

plans.

Technological Environment:
Technology varies significantly across countries. New products in a

country are created based of the conditions and infrastructure of that country.

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CRESCENT JUTE PRODUCTS LIMITED (CJPL):

CRESCENT JUTE PRODUCTS LIMITED (CJPL) was established in

1965 and is one of the largest jute mills in the country. The manufacturing

facility in Jaranawala (Central Punjab) is spread over an area of 127 acres

comprising of 500 conventional and 60 shuttles-less looms and the requisite

back process.

CJPL employs a workforce of 3,000 and has the capacity to produce

30,000 Metric tons of Jute goods annually. CJPL is part of the Crescent

Group (CG); CG is one of the largest Industrial Groups in Pakistan and has

diverse business interests including Textiles, Textile value added, Sugar,

Steel and Banking.

QUESTIONAIRS:

Following are some queries, which I asked during my visit at

CRESCENT JUTE PRODUCTS LIMITED (CJPL).

1. When and how did you start your business?

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2. How do you compare Domestic Entrepreneurial Business with


International Entrepreneurial?

3. What are the advantages attached with domestic entrepreneurial


business?

4. What are the drawbacks / disadvantages of doing business as


domestic entrepreneurship?

5. Why did you Expand business from domestic to international


Entrepreneurship?

6. What are the advantages / factors which persuaded you to come


towards the international Entrepreneurship business?

7. What are the difficulties which you faced after coming into
international Entrepreneurship business?

8. How the different economics conditions prevailing in different


countries effect your business?

9. What are the key factors which you think that an international
Entrepreneur should have?

10. How do you take different political conditions existing in different


countries as an international entrepreneur?

11. What are the impacts of Culture on international business


(Entrepreneurial Business)?

12. Where do you want to see your Business in Future?

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