Program : MBA

Semester : IV
Subject Code : MB0053
Subject Name : International Business Management
Unit number : 01
Unit Title : Introduction to International Business
Lecture Number : 01
Lecture Title : Introduction to International Business

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 Unit-1 Introduction to International Business

Introduction to International
Business

Objectives

The objectives of this lecture are to:

Describe the evolution of international business
Explain the concept of international business
Analyse the difference between domestic, international and global
business
Explain the dynamics of globalisation

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 Unit-1 Introduction to International Business

Lecture Outline

Introduction
Factors Affecting International Business
Elements of International Business
Globalisation
Summary
Check Your Learning
Activity

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 Unit-1 Introduction to International Business

Introduction
International business is defined to be any business that crosses the national
borders of the country for its establishment.

International business is growing at a rapid rate and is affected by various

factors.

The elements of international business includes:

Domestic vs. international business

Advantages of international business

Drivers of international business

Available entry options to international business

Globalisation is a process of business dealings in markets around the world.

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Unit-1 Introduction to International Business

Factors Affecting International

Business

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 Unit-1 Introduction to International Business

Elements of International Business

Domestic vs. international business
The differences between domestic and international business are based on the
following issues:
Legal and regulatory framework
Financial management
Trade barriers and tariffs
Accounting and taxation
Culture
Market forces

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 Unit-1 Introduction to International Business

Elements of International Business

(continued)
Advantages of international business
The benefits of international business are:
Low cost production
Strategic resources
Large customer base
Competitive advantage
Diversify risk

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 Unit-1 Introduction to International Business

Elements of International Business

(continued)

Drivers of international business

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 Unit-1 Introduction to International Business

Elements of International Business

(continued)

Available entry options to international business

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 Unit-1 Introduction to International Business

Globalisation

Features of globalisation

Globalisation is a process which consist of business dealings around the

world in addition to the local and national markets.

Business terminologies define globalisation as the worldwide trend of

businesses expanding beyond their domestic boundaries.

It is advantageous as it helps in promoting prosperity in the countries that

embrace globalisation.

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 Unit-1 Introduction to International Business

Globalisation (continued)

Competitive strategies used in globalisation

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 Unit-1 Introduction to International Business

Summary
International business is defined to be any business that
crosses the national borders of the country for its

establishment.
The factors affecting international business includes

national economy, national culture, politics, financial management, human

resources, accounting practices, marketing environment and trade blocs.
There are various elements of international business such as advantages,
drivers and entry to international business.
The entry options to international business are export strategy, licensing,
franchising and foreign direct investment.
Globalisation is a process where businesses are dealt in markets around the
world in addition to the local and national markets.

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Unit-1 Introduction to International Business

Check Your Learning

1. Name any four drivers of international business.

Ans. Four drivers of international business are:
Global marketplace
Emerging markets
FDI policies
Trading blocs
2. What are the entry options to international business?
Ans. The entry options to international business are:
Export strategy
Licensing
Franchising
Foreign Direct Investment (FDI)

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 Unit-1 Introduction to International Business

Activity

Visit an international business organisation. Prepare a report on the

elements of international business with respect to the organisation and
the factors affecting international business.

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