International Business Introduction Aarti Singh @MERI College @ BBA

1. MANAGEMENT EDUCATION AND RESEARCH
INSTITUTE
INTERNATIONAL BUSINESS MANAGEMENT
TOPIC- INTERNATIONAL BUSINESS
INTRODUCTION, SCOPE, TRENDS,OPPORTUNITIES
AND CHALLENGES
NAME – AARTI SINGH
COURSE- BACHELOR OF BUSINESS ADMINISTRATION (BBA)
2017-2020
SEMESTER – 6TH
ENROLLMENT NO – 43115101717
SUBMITTED TO – MS. MONICA SHARMA

2. INDEX
S.NO TOPIC
1. Introduction Of International Business
2. Scope of International Business
3. Benefits of International Business
4. Trends of International Business
5. Challenges and Opportunities of International Business

3. INTERNATIONAL BUSINESS

4. INTRODUCTION OF 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.

5. INTERNATIONAL BUSINESS

6. SCOPE OF INTERNATIONAL BUSINESS
 Merchandise exports and imports: Merchandise means goods
that are tangible, i.e., those that can be seen and touched. When
viewed from this perceptive, it is clear that while merchandise
exports means sending tangible goods abroad, merchandise
imports means bringing tangible goods from a foreign country to
one’s own country.
 Service exports and imports: Service exports and imports
involve trade in intangibles. It is because of the intangible aspect
of services that trade in services is also known as invisible trade.



7. SCOPE OF INTERNATIONAL BUSINESS
 Foreign investments: Foreign investment is another important
form of international business. Foreign investment involves
investments of funds abroad in exchange for financial return.
Foreign investment can be of two types: direct and portfolio
investments.
 Licensing and franchising: Permitting another party in a foreign
country to produce and sell goods under your trademarks, patents
or copy rights in lieu of some fee is another way of entering into
international business. It is under the licensing system that Pepsi
and Coca Cola are produced and sold all over the world by local
bottlers in foreign countries.

8. BENEFITS OF INTERNATIONAL
BUSINESS
International Business is important to both Nation and Business
organizations. It offers them various benefits.
Benefits to Nation
 It encourages a nation to obtain foreign exchange that can be
utilized to import merchandise from the global market.
 It prompts specialization of a country in the production of
merchandise which it creates in the best and affordable way.
 Also, it helps a country in enhancing its development prospects
and furthermore make opportunity for employment
 International business makes it comfortable for individuals to
utilise commodities and services produced in other nations which
help in improving their standard of life.

9. INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS

10. BENEFITS OF INTERNATIONAL BUSINESS
Benefits to Firms
 It helps in improving profits of the organizations by selling
products in the nations where costs are high.
 It helps the organization in utilizing their surplus resources and
increasing profitability of their activities.
 Also, it helps firms in enhancing their development prospects.
 International business also goes as one of the methods for
accomplishing development in the firms confronting extreme
market conditions in the local market.
 And it enhances business vision as it makes firms more
aggressive, and diversified.

11. INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS

12. TRENDS OF INTERNATIONAL BUSINESS
 Growing Emerging Markets- Developing countries will see the
highest economic growth as they come closer to the standards of
living of the developed world. If you want your business to grow
rapidly, consider selling into one of these emerging markets.
Language, financial stability, economic system and local cultural
factors can influence which markets you should favor.
 Demographic Shifts- The population of the industrialized world
is aging while many developing countries still have very youthful
populations. Businesses catering to well-off pensioners can profit
from a focus on developed countries, while those targeting young
families, mothers and children can look in Latin America, Africa
and the Far East for growth.

13. TRENDS OF INTERNATIONAL BUSINESS
 Speed of Innovation- The pace of innovation is increasing as
many new companies develop new products and improved
versions of traditional items. Western companies no longer can
expect to be automatically at the forefront of technical
development, and this trend will intensify as more businesses in
developing countries acquire the expertise to innovate
successfully.
 Increased Competition- As more businesses enter international
markets, Western companies will see increased competition.
Because companies based in developing markets often have lower
labor costs, the challenge for Western firms is to keep ahead with
faster and more effective innovation as well as a high degree of
automation.

14. CHALLENGES AND OPPORTUNITIES
INEVITABLY SUCH CHALLENGES AND OPPORTUNITIES VARY BETWEEN COMPANIES
AND SECTORS BUT SOME FREQUENTLY CITED OPPORTUNITIES AND CHALLENGES
INCLUDE:
OPPORTUNITIES CHALLENGES
 Access to customers in new
countries
 Economies of scale
 Government incentives to
relocate
 Access to regional trading
agreements/avoidance of trade
barriers
 New competition for existing
customers in domestic
markets
 Managing long supply chains
 Costs of meeting a multitude
of local/national laws and
regulations
 Exchange rate fluctuations

15. THANK YOU