International Business –

Objectives & Scope

September 01, 2018

Environmental Situation
An organization can react to its environmental situation in several
ways. It may:

 do nothing if it is convinced that the problem is insignificant

or short-term

 decide to monitor the environment carefully but not to

respond just yet

 increase its flexibility through contingency planning and

product-market development

 decide that the situation is important and urgent and want

to plan major strategic change
Global Business Environment
Evolution of IB
International Trade
(Export to & Import from neighboring countries)

International Marketing
(Demand creation, Establishing Distribution
Channels, Packaging, Pricing, etc.)

International Business
(Setting up Subsidiaries, Manufacturing facilities)
Globalization
 People are affected by globalization in a number of ways. People
are also aware of global brands either through personal
experience or by media.

 Thinking about what you are doing at the moment, it is quite

possible that:
* You are reading a book written in the UK
* Using software developed in North America
* Which was printed in India
* Bought using a credit card issued by an international bank
* You are drinking a coffee made from Columbian beans
* Clothes made in China or possibly from Egyptian cotton
* You may be listening to music playing on an equipment
made in Japan
Globalization
 New overseas markets

 Deregulation

 Liberalization of trade

 Emerging markets

 Free trade

 Lower production costs

 Developments in technology and communication networks

 Global financing

 Developments in transportation
Objectives of IB
The major objectives of international Business are −

 To enhance free trade at global level and attempt to bring all the
countries together for the purpose of trading

 To increase globalization by integrating the economies of different

countries

 To promote social and cultural exchange among the nations

 To assist developing countries in their economic and industrial

growth by eliminating the gap between the developed and the
developing countries

 To assure sustainable management of resources globally

 To propel export and import of goods globally and distribute the

profit among all participating countries
Scope of IB

 International Trade (Import / Export)

 New ventures

 Franchising / Licensing

 Mergers and acquisitions

 Strategic alliances

 Subcontracting and outsourcing

 Network organizations
THANK YOU