FUNDAMENTAL OF

INTERNATIONAL
BUSINESS
SUBMITTED TO: SOURABH KANT.            SUBMITTED BY : RITU 144 5.4B 
TOPIC:

WHAT IS INTERNATIONAL BUSINESS AND HOW IT WORKS :

INTERNATIONAL BUSINESS 

• international business involves all commercial activities that Cross international

boundaries. Barriers to cross border trade and investments are eliminating, thereby
facilitating the growth of international business. 
• International business such as WTO, United Nations conference on trade and
development, international monetary fund, world Bank etc are promoting international
business. 
"INTERNATIONAL BUSINESS CONSISTS ALL COMMERCIAL TRANSACTIONS
SUCH AS SALES, INVESTMENTS AND TRANSPORTATION THAT TAKE PLACE
BETWEEN TWO OR MORE COUNTRIES".
FEATURES

In short international business involves following features:

• Integration of domestic economy with global economy
• Operating up of the economy to foreign capital foreign technology and foreign
competition
• Free world trade with liberalized approach towards imports and exports.
• Expansion of multinational corporations.
ELEMENTS OF INTERNATIONAL BUSINESS

•  liberal trade of goods and services

• Easy movement of capital
• Easy movement of labour
TYPE OF INTERNATIONAL BUSINESS: 

• International trade
• Technological collaboration
• International investment
PROCESS OF INTERNATIONALISATION OF
BUSINESS
• Export import stage
• Technological collaboration
• Investment stage
5 P'S OF INTERNATIONAL BUSINESS: 

• Product
• Price
• Proximity
• Preference
• Promotion
DIFFICULTIES IN INTERNATIONAL BUSINESS: 

• Cultural differences
• Difference in accounting standards and practices
• Language barrier
• Control more complex
• More risk involved
• Difference in consumer taste and preferences
• Uncertainties in government policies
• Bureaucratic hurdles
• Foreign exchange fluctuation
• Opposition by domestic manufactures
• Technological piracy
DISADVANTAGE OF INTERNATIONAL
BUSINESS
• Exhaustion  of natural resources
• Political interference
• Dumping
• Foreign competition
• International Re valerie
• Increase in prices
• Increase in wasteful consumption
• Dependence
CONT...

• Loss of agriculture is countries

• Over production
• Lopsided development
• Effect of economic evils
• O specialisation
• Harmful to underdeveloped countries
•                       Thank you