A Mini project report submitted in partial fulfillment of the requirements for the

Award of the Degree of 4th semesters

MASTER OF BUSINESS ADMINISTRATION OF
BANGALORE UNIVERSIT

Submitted by
PRASANNA KUMAR M S
20UHCMD079
Under the Guidance of
Ms. Swetha P Naik
Assistance professor
Department of Manager
EAST WEST COLLAGE OF MANAGEMENT
No.63,off Magadi Road, Vishwaneedam Post, Bharath Nagar,
Bangalore-560091
Bangalore University
2022-2023
 STUDENT DECLARATION

I, PRASANNA KUMAR M S hereby declare that the main project report entitled “MODLES OF IB” with
reference to the subject “ INTERNATIONAL BUSINESS DYNAMICS” prepared by me under the guidance of
MS. SWETHA P NAIK faculty of MBA Department, EWCM. I also declare that this mini project work is towards
the partial fulfillment of the University regulation for the degree of master of Business Administration by collage. I
further declare that this project is based on the original study undertaken by me and has not been submitted for the
award of any degree from any other University/Institution.

Place: Bangalore Dr.D. Sandhya

Date: HOD
Prasanna Kumar M S Faculty Name: Ms. Swetha P Naik

Signature
 Topic: Models of IB

Introduction to 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.

Characteristics of International Business

1) Large scale operations.

2) Earns foreign exchange.
3) Integrates economies.
4) Large number of middlemen.
5) High risk.
6) Intense competition.
7) International restrictions.
8) Highly sensitive nature.
Objective of International Business.

1) Attract foreign demand.

2) Utilize technology.
3) Use of economic resources.
4) International diversification.
5) Profit maximisation.
6) Increased market share.

Needs and Importance of International Business.

1) Market expansion.
2) Non-availability of product in new market.
3) Cost advantage.
4) Product Differentiation.
5) Economic recession in one's own country.
6) Loss of Domestic market share.
7) Growth in Demand in other markets.
8) Excess capacity of Production.
9) Economies of Scale.
10) Purchasing Power.
Advantage of International Business.

1) Increased revenues.
2) Decreased competition.
3) Longer product lifespan.
4) Easier cash-flow management.
5) Better risk management.
6) Benefiting from currency exchange.
7) Access to export financing.
8) Disposal of surplus goods.

Disadvantage of International Business.

1) Political and legal difference.

2) Culctural difference.
3) Economic Difference.
4) Difference in the Currency unit.
5) Difference in language.
6) High cost distance.
7) Difference in trade parties.
8) Import from harmful goods.
Recent trends (2021) of International Business.

1) Environmental-friendly technologies.
2) Block-chain applications in different industries.
3) Greater focus on data privacy and protection.
4) Rise of the gig economy.

Conclusion

This chapter explains competition in international markets. Executives must consider the benefits and risks of
competing internationally when making decisions about whether to expand overseas. Executives also need to
determine the likelihood that their firms will succeed when they compete in international markets by examining
demand conditions, factor conditions, related and supporting industries, and strategy, structure, and rivalry among its
domestic competitors. When a firm does venture overseas, a decision must be made about whether its international
strategy will be multidomestic, global, or transnational. Finally, when leading a firm to enter a new market, executives
can choose to manage the operation via exporting, creating a wholly owned subsidiary, franchising, licensing, and
creating a joint venture or strategic alliance.
Bibliography

https://www.toppr.com
https://commercemates.com/characteristics-international-business/
https://www.marketing91.com/importance-international-business/
https://www.economicsdiscussion.net/international-trade/international-business-advantages-and-disadvantages/13951
https://www.lsbf.edu.sg/blog/education-and-careers/what-are-the-trends-in-international-business-for-2021/
https://saylordotorg.github.io/text_mastering-strategic-management/s11-05-conclusion.html
THANK YOU