Department of pharmacy

Assignment On:
International Business management
Course Code: BPH-416

Course Title: Pharmaceutical Management

Submitted By
Sajib Chandra Biswas
ID:191-29-1476
Batch: 21(A)
Department of pharmacy
Daffodil International University
Submitted To
Tahmina Afroz
Lecturer (Senior Scale)
Department of Pharmacy
Daffodil International University
 Date of submission: 12.06.2021

No. Content Page No.

01 Introduction 01

02 Types of Business 01

03 Domestic Business 01

04 International Business 02

05 Multinational Business 02

06 Global Business 02

07 Different approaches to internationalization 02-03

08 Challenges of International Management 03

09 Tariff and Quota 03-04

10 Reference 04
Introduction:

International business refers to the trade of goods, services, technology, capital and/or
knowledge across national borders and at a global or transnational scale. It involves cross-border
transactions of goods and services between two or more countries. Transactions of economic
resources include capital, skills, and people for the purpose of the international production of
physical goods and services such as finance, banking, insurance, and construction. International
business is also known as globalization. [1]

Picture courtesy: https://www.business-to-you.com/international-business-strategy/

Types of Business:

1. Domestic Business
2. International Business
3. Multinational Business
4. Global Business [2]

Domestic Business:

Domestic business is where a company has economic transactions that are done within the
country's geographical limits. International business is where a company isn't restricted to just
one country, such as a business who has several different countries around the world that they're
engaged with. [2]

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International Business:

International business refers to the trade of goods, services, technology, capital and/or
knowledge across national borders and at a global or transnational scale. It involves cross-border
transactions of goods and services between two or more countries. International business is also
known as globalization. [3]

Multinational Business:

A business that has a worldwide market place, from which it buys raw materials, borrows money
and manufactures its products and to which it subsequently sells its products. [3]

Global Business:

A global business is a company that operates facilities (such as factories and distribution centers)
in many countries around the world. This is different from an international business, which sells
products worldwide but has facilities only in its home country. [4]

Different approaches to internationalization:

 Importing and Exporting.

 Licensing.
 Strategic Alliances and Joint Venture.
 Direct investment.

Importing and Exporting.

Exporting refers to the selling of goods and services from the home country to a foreign nation.
Whereas, importing refers to the purchase of foreign products and bringing them into one’s home
country. [5]

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 Picture courtesy: www.toppr.com/guides/business-studies/international-business/importing-and-exporting/

Licensing:

Licensing is defined as a business arrangement, wherein a company authorizes another company

by issuing a license to temporarily access its intellectual property rights. [6]

Strategic Alliances and Joint Venture:

A Strategic Alliance is an arrangement between two companies to undertake a mutually

beneficial project, with each remaining independent. Joint Venture is a form of Strategic
Alliance that is more complex and binding. In a Joint Venture, two businesses pool resources to
create a separate business entity. [7]

Picture courtesy: https://www.indiamart.com/proddetail/joint-ventures-and-or-strategic-alliances

Direct investment:

A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a

business in one country by an entity based in another country. It is thus distinguished from a
foreign portfolio investment by a notion of direct control. [8]

Challenges of International Management:

 Economic environment

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  Political/Legal environment
 The Cultural Environment

Tariff:

A tariff is a tax imposed by one country on the goods and services imported from another
country. [9]

Quota:
A quota is a government-imposed trade restriction that limits the number or monetary value of
goods that a country can import or export during a particular period. Countries use quotas in
international trade to help regulate the volume of trade between them and other countries.
Countries sometimes impose quotas on specific products to reduce imports and increase
domestic production. In theory, quotas boost domestic production by restricting foreign
competition. [10]

Reference:

1. https://en.wikipedia.org/wiki/International_business
2. https://www.upcounsel.com/define-domestic-business
3. https://en.wikipedia.org/wiki/International_business
4. https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-
guides/glossary/global-business
5. https://www.toppr.com/guides/business-studies/international-business/importing-
and-exporting/
6. https://businessjargons.com/licensing.html
7. https://tish.law/2020/05/14/what-is-the-relationship-between-a-strategic-alliance-
and-a-joint-venture/
8. https://en.wikipedia.org/wiki/Foreign_direct_investment
9. https://www.investopedia.com/terms/t/tariff.asp

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10. https://www.investopedia.com/terms/q/quota.asp