INTERNATIONAL BUSINESS DYNAMICS

TOPIC:SOCIAL ISSUES OF IB
 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.
To conduct business overseas, multinational companies need to bridge separate national markets into one global marketplace.
There are two macro-scale factors that underline the trend of greater globalization. The first consists of eliminating barriers to
make cross-border trade easier (e.g. free flow of goods and services, and capital, referred to as "free trade"). The second is
technological change, particularly developments in communication, information processing, and transportation technologies.
CHARACTERISTIC FEATURES

• Large scale Operations

• Immobility of Factors
• Heterogeneous Markets
• Integration of Economies
• Dominated by developed countries and MNCs
• Beneficial to Participating Countries
• Keen Competition
• Special Role of Science and Technology
 OBJECTIVES

• Higher rate of profit.

• Expanding production capacity.
• Limited home market.
• Availability of latest technology
• Liberalization and globalization
 NEED AND SCOPE

• Foreign Investments
• Exports and Imports of Merchandise
• Licensing and Franchising
• Service Exports and Imports
• Growth Opportunities
• Benefiting from Currency Exchange
• Limitations of the Domestic Market
• Market Expansion
 ADVANTAGES

• High living standard.

• Increase socio-economic welfare.
• Wider market.
• Reduced effect of business cycle.
• Provides opportunity & challenge domestic market.
 DISADVANTAGES
• Adverse effects on the economy
• Competition with developed countries
• Competition with developed countries
• Competition with developed countries
• Exploitation
• Legal problems
• Publicity of undesirable fashions
 CURRENT SCENARIO

International Business in India looks really lucrative and every passing day, it is coming up with only more possibilities. The
growth in the international business sector in India is more than 7% annually. There is scope for more improvement if only the
relations with the neighboring countries are stabilized. The mind-blowing performance of the stock market in India has
gathered all the more attention (in comparison to the other international bourses). India definitely stands as an opportune place
to explore business possibilities, with its high-skilled manpower and budding middle class segment. With the diverse cultural
setup, it is advisable not to formulate a uniform business strategy in India. Different parts of the country are well-known for its
different traits. The eastern part of India is known as the 'Land of the intellectuals', whereas the southern part is known for its
'technology acumen'. On the other hand, the western part is known as the 'commercial-capital of the country', with the northern
part being the hub of political power'. With such diversities in all the four segments of the country, international business
opportunity in India is surely huge.
 CONCLUSION

The process of location of foreign operation in a new country must be carried out carefully. Firm which aim to invest in
foreign country need to make analysis of capital development, economic, political, culture, and legal stability not to make
analysis on the risk involved in country. Almost of countries have risk in past. the investment of international firm bring
changes in the situation. And country becomes economically stable. The country with risk has no competitor in the area. And
with inter of international business it make positive impact. Create more employment, which increases consumption power of
people. International business have high rate of profit. As the international business making contribution toward the economy
of the country the government of host country give international business some relaxation in law and ensure him all kind of
security as business need to do their operation.
 BIBLIOGRAPHY

• https://www.slideshare.net/ShubhamAhirwar3/international-trade-7
4641250
• https://en.wikipedia.org/wiki/International_business#:~:text=Interna
tional%20business%20refers%20to%20the,between%20two%20or%2
0more%20countries
.
• https://courses.lumenlearning.com/suny-internationalbusiness/chapt
er/reading-what-is-international-business/
THANK YOU