Midterm Exam (Summer-2020)

Name: Md. Siful Islam Rakib

Id: 142200078

Course Code: BUS303

Course Tittle: International Business

 Ans. the ques. no-1

International business means to deal with foreign stakeholders foreign

employees, customers and the government. These pose a lot of problems as they

offer resistance to change. Then there are issues of office politics which

business analysts may not be knowing., Then there are communication

difficulties and cultural differences. Business managers need knowledge of all

these factors while conducting business in global market. Business managers

should  understand competition, supply chain management and pricing strategy.

Businesses should understand the opportunities in the global market and then

choose international business strategies. International strategies involve laying

stress on exporting products to foreign markets or importing of goods and

services for the use in the home market. The company should produce those

goods and services that satisfy the needs of the foreign countries where they are

based. So the business should adopt multi domestic business strategy.

Companies in international markets ,follow the strategy of economies of scale in

an attempt to increase their revenue. Businesses can employ transnational

business strategy which combines international and multi domestic strategies.

This will allow a company to operate in international markets.

 Ans. to the ques. no-2

Normal process of trade, foreign direct investment, higher capital flows,

advanced technology form developed countries and migration caused evolution

of international business. This evolution occurred through many progressive

stages and development paths. Most of the international business started and

evolved through different phases like, export focus, sales subsidies,

international division etc. From 1960s the multinational companies giving

preference for public interest. So European and East Asian firms were tried to

expand their business in the global market. These international businesses were

help to create new employment opportunities, efficient allocation of resources,

allotment of preferential choices to the global level, mobility of capital and new

technologies. There were several modes were used for trading in olden

centuries. First World War created a huge destruction in the international trade.

At the same time a large number of treaties and agreements were signed on the

basis of the interest of all the countries to maintain normal trade relation. There

are four major business strategies in the international business. They are export,

standardisation, multi domestic and transactional. This international business

maintains local responsiveness and global integration.

Integration of economic growth and the development of societies played an

important role in the expansion of international business. In 1870, there is a first

phase of globalisation emerged. After 1913 several trade barriers were increased
among the countries to protect the domestic firms and industries. There were

several efforts were put forward to convert GATT to WTO. The two phases of

the evolution are international trade to international marketing and international

marketing to international business. After 1990 there is rapid industrialisation,

internationalisation and globalisation. Now a day, the international trade

relation determines the growth of every country.

Ans. to the ques. no-4

A global company is one that which does business in at least one country

outside of its country of origin. There are many good examples of global

company around the world one such company is the Coca-Cola which was a

fledgling start-up in 1886 and now there are serving about 200 countries. some

other company that now global include hospitality corporation Hyatt and Hilton

hotels. Due to increasing globalisation even smaller companies have been able

to cross national borders and do business abroad.

Global companies are categorised based their huge size, large no. of products,

advance in technology, marketing strategy and network operations all over the

world.

The main benefit of global companies are

a. Implementing global business services

b. Outsourcing activities across the enterprise

c .Better risk management

d. Easier cash flow management

according to global bankruptcy report revealed business failures have declined

globally despite it increased the economic challenges