INTERNATIONAL BUSINESS<br />Early Development<br />
<ul><li> During 16th & 17th century the International trade was carried out by INDIVIDUAL SEEKING FORTUNES at SOARING PRICES.</li></ul>Results-<br /><ul><li> The fabulous profit motivated some firms to operate abroad.
East India Company moved to India during 17th century.
Industrial Revolution in Europe changed the character of International business.</li></li></ul><li>Changed Character of ib<br />Exporting back to Raw material producing country<br />Extracting Processing Transporting<br />HOME INDUSTRYPLANNING <br />Finished goods<br />
POST WAR DEVELOPMENTS<br />Since 1940s- US economy turned out as strongest one which leads to rapid internationalization of their firms till 1950s with FDI $12 to $80 billion (Rs.12000000000-Rs.80000000000).<br />Since 1960s- European firms turned into internationalization.<br />1970s-80s-Japanese MNCs faced the oil crisis but became the largest producers of AUTOMOBILES, till the position was enjoyed by the U.S.<br />1983s-1990- FDI outflow grew at an average annually & 27%. <br />
Process of evolution of IB<br /><ul><li>Form substitute middlemen.
Subsidiary unit in exporting country</li></ul>Trade<br />Assembly/ Production<br /><ul><li> To reach the customer at LEAST COST.
Assemble product to reduce tariff.</li></ul>Integration<br /><ul><li>Integrates activities.
Trade-off between LIQUIDITY & PROFITABILITY.</li>