Summary
In this essay it is about International Business, in which it is focused on companies, international businesses can be said to be those transactions that are carried out with other countries, whether national or foreign. In the same way, international business is related to the culture of different countries, as well as why organizations venture into international business and finally about trade and globalization, why it is important.
International companies and business
introduction
The present essay can be observed, what is the history of international business, in which it originates when the need for countries arises so that they can develop economically, because it is said that exchanges of products or services were made a long time ago. It is mentioned that the countries carried out international exchanges since the 18th century, since at that time mercantilism began to exist. It also talks about the concept of international business, in which a type of transaction can be defined as those business transactions carried out by companies, whether private or government, to other foreign countries. In the same way, about the culture that directly influences all international business,Since not all countries can negotiate in the same way, and finally, it will be discussed why companies venture into international business and also about trade and globalization.
II. Background
The origin of international business occurs first through the need of countries so that they can develop economically, since for a long time they have been doing what are the exchanges of products or services. In the same way, countries carried out international exchanges since the 18th century, since at that time mercantilism began to exist, it is mentioned that gold was the main and only world currency, it is also said that through commercialism, countries could improve their economic situation all this due to the exports that were made and this helped to have a positive trade balance and also favored the economic flows of the countries.
We can start from the fact that “… International business arises from the post-World War II era until 2000 divided into three stages. The first goes to the 1970s and focuses directly on the flows of Foreign Investment… (Buckley, 2002)
We agree with what the author mentions, since international business was carried out for a long time, in which at that time it was called exchange or bartering and that little by little countries began to market their products or services abroad.
III. Development
It can be said that international businesses are all those business transactions carried out by companies, whether private or government, that means that they are forms of negotiations that are different and that are carried out at a national or foreign level.
We can start from that:
“… I term international business can be defined“ are all business transactions –private and governmental- that involve two or more countries. Private companies carry out these transactions for profit… (International Business, 2007).
We agree because a company can do business transactions in other countries, whether national or international, all this so that an organization can continue to grow at another level.
International Business
It should be noted that currently international business has become very important for the growth of a country and also for the international opening of companies, this has made many organizations in the world achieve growth, an entry into markets foreigners, in the same way a commercial exchange of their products or services. The economies of the countries have also gone out to see their surroundings, in order to find new niches of opportunity, but after the Free Trade Agreement, they made the borders open and the tariff rates were lowered and gave the world of business that great opportunity.
The one that benefited was Mexico by the opening of the Free Trade Agreement, since it is a great advantage of the proximity with a country like the United States, in which it is a great commercial power worldwide, with this it opened the doors to various companies so that they can export their products and services, resulting in accelerated growth for organizations.
But there are also many companies that could not grow, this was because they did not have the capital and the necessary infrastructure so that they can compete with the other large Mexican companies that did have these resources.
We can say that:
“… It is important to know the essential aspects of an international negotiation, definitions and the parties that intervene in it, the aspects that are commonly negotiated, as well as the stages through which most international negotiations go through, that is, the general scheme of negotiation… ”(Rugman, 2000)
We agree with what the author says since it must be taken into account that international business is involved and who makes it up, so that there are no problems when conducting a business.
Culture
What is referred to is that culture directly influences international business, because not all countries can negotiate in the same way, aspects such as values, habits, customs, religion or morals, are of It is essential to know it, since you can have good communication and then to be able to obtain a negotiation that will benefit both parties.
“… Culture consists of common patterns of behavior that are learned from the members of a certain society, which represent the particular lifestyle of a specific group of people…” (Gelles, 2000).
When people who work with companies and have cultures that differ from their own, the problems they face when covering a single set of cultures can multiply, this is due to the number of cultural sets, which are found in each international market.
Why do companies venture into international business?
It can be said that when companies operate internationally, their mission must be taken into consideration, that is, what they intend to be and do in the long term, as well as their objectives and strategies.
There are four main objectives that can make a company undertake in international business:
- “The increase in your sales The acquisition of resources The diversification of your sources of sales and supplies The minimization of competitive risk” (International Business, 2007)
Trade and globalization
It can be said that there is only one country that can consider itself self-sufficient and that does not need the support of other countries, although there are countries that are richer, they need resources that they lack in such a way through negotiations and of global agreements meet their needs and gaps. Also the weather conditions that each country has, makes them exchange with other countries, where they produce goods or services that are necessary for the survival and development of these places. The development of international trade, this means that countries can prosper by taking advantage of their assets that are produced better and then exchange them with other countries, which in turn they produce in the best way.
It can be mentioned that:
"… The importance of the good performance of international relations in development, political, commercial, and cultural worldwide, is essential today for the achievement of the integral development of nations…" (Ball, 1997)
IV. conclusion
In conclusion, it can be said that international business arises through the need of countries so that they can develop economically, since for a long time they have been doing what are the exchanges of products or services. In the same way, countries carried out international exchanges since the 18th century, since at that time mercantilism began to exist. It can also be said that international business is all those business transactions carried out by companies, whether private or government, that means that they are forms of negotiations that are different and that are carried out at a national or foreign level.
In the same way that culture directly influences all businesses that are carried out since not all countries can negotiate in the same way and that culture also consists of common patterns of behavior that are learned from the members of a certain society, which represents the particular lifestyle of a specific group of person. It is said that when companies operate internationally, their mission must be taken into consideration, that is, what they intend to be and do in the long term, as well as their objectives and strategies. Finally, there is not a single country that can consider itself self-sufficient and that does not need the support of other countries, although there are countries that are richer,they need resources which they lack in such a way through negotiations and global agreements they supply their needs and deficiencies.
V. References
- Ball. (1997) Gelles. (2000). International business. (September 6, 2007). Retrieved on March 8, 2014, from Spentamexico: http://www.spentamexico.org/v2-n2/2(2) 156-228.pdfRugman. (2000) Buckley, P. (2002).
