internationalization

Harshini sandadi roll no-32

EVOLUTION OF INTERNATIONAL BUSINESS

The significant growth of international business began in the middle decades of the 19th century and accelerated once more from the early 1970s until the present, when the globalization of business has become a catch-phrase.

The process of evolution: Trade Assembly of production integration

DEFINITION

The exchange of goods and services among individuals and business in multiple countries. International business is either private or government business relationships conducted across political boundaries of the national.

STAGES OF INTERNATIONALIZATION

Domestic company: Most international companies have their origin as domestic companies. international company: International company is normally the second stage in the development of a company towards the transitional corporation. Multinational company: when a company decides to respond to market differences.

global company: This company is increases in dominating markets and industries around the world

MODES

1.Exporting:It means the sale abroad of an item produced ,stored or processed in the supplying firms home country 2.Licensing :In this mode of entry ,the domestic manufacturer leases the right to use its intellectual property

3.Franchising:Under franchising an independent organization called the franchisee operates the business under the name of another company called the franchisor.

4.Turnkey Project: A turnkey project is a contract under which a firm agrees to fully design , construct and equip a manufacturing/ business/services facility and turn the project over to the purchase

5.Mergers & Acquisition: domestic company selects a foreign company and merger itself with foreign company in order to enter international business 6.Joint Venture:Two or more firm join together to create a new business entity that islegally separate and distinct from its parents

7.Wholly Owned Subsidiary:Subsidiary means individual body under parent body.