Definitions of international business:

Those business activities that involve the crossing of national boundaries; these include:
1. Import & export of commodities & manufactured goods.
2. Investments in capital in manufacturing, extractive, agricultural transportation &
communication assets.
3. Supervision of employees in different countries.
4. Investment in international services, like banking, advertising, tourism, retailing &
construction.
5. Transactions involving copyrights, patents, trademarks & process technology.
All of these activities can take place between individuals, farms, other public & private
bodies.

*Forces of change impacting organization environment:

1. Technological revolutions.
2. Heavy competition.
3. Record number of mergers, acquisition, divestitures, buy outs, joint ventures, and
business start ups and failures.
4. Consumer demand for services and products having more options and superior quality.
5. Globalization of financing business.
6. Labor force demand for more involvement, discretion, and appreciation; increases in
the number of two wage farm families.
7. Public call for less taxes and government control; demands for higher level of services
and responsiveness.

*The business challenge;

#change in the market
- occur faster than ever before.
- come from more sources than ever before.
-have a more radical impact than ever before.
#force companies too fundamentally
-change the way they think about the business.
-change the way they run the business.

*The rule of balance:

Environment: level of
*outside turbulence.
*speed of change.
->Capacity to
*react.
*ability to adapt.
> Flexibility
*Internationalization Trend:
1. The potential of a United States-Canada-Mexico free trade region through the NAFTA.
2. The emergence of the European Community as a potential fully functioning economic
union.
3. The move of Russia & other countries of the ex-Soviet Union & Eastern Europe
toward market economies.
4. The continued economic power of Japan in the Pacific Rim even though it is no longer
appears to the invincible (Yen Zone).
5. The renewed progress of China as well as the established Four Tigers (Hong Kong,
Taiwan, South Korea & Singapore).
6. The newly emerging South East Asian Countries, albeit with volatility, of Malaysia,
Thailand, Indonesia & even Vietnam (ASEAN).
7. Continued efforts with results showing in many Latin American countries to develop
the economic potential of these geographic regions.
8. Economic progress among less developed nations such as India, Chili & Argentina.

*Why studying IB?

1. Almost all of the large enterprises in develop countries are international in character.
2. Many small & medium sized farms are also involved internationally, even if only in
the farm of export & import activities.
3. Competitive environments are typically industry specific & industries today are very
often competitive internationally.
4. Public policy issues are often related to international trade, investment & finance; no
country today can afford to neglect the foreign sector when drawing up its economic
policies.

*Dimensions of international business;

1. Purpose
>maximizing overall profit
> lowering overall risk
-situations in host country
>Technology impacts
> Functional impacts
>competitive impacts
>environment impacts
>political impacts

2. Developing operating strategies

>Responsive to business
>integrating functional and country specific strategies
>flexible feedback and evaluative mechanisms.