Approaches to

International Business
In the realm of international business, companies employ various approaches to
expand and manage operations on a global scale. These approaches shape
strategies, structures, and philosophies that drive businesses in the international
market.
Global Integration Approach
Global Standardization

Companies using this approach aim to achieve uniformity in products, services, and management practices
across different markets. This enables them to benefit from economies of scale and maintain consistency in
operations.

Centralized Decision-Making

Decision-making authority and control are centralized at the headquarters, allowing for streamlined
operations and uniformity across international markets. This facilitates efficient coordination and
implementation of strategies.

Cost Efficiency

By employing standardized operations, production, and marketing strategies, companies strive to reduce
costs. These strategies are designed to be applicable across multiple markets, ensuring optimum efficiency.
Multinational Approach
Decentralized Operations
Subsidiaries or regional offices are granted
a certain degree of autonomy in decision-
making, enabling them to better respond to
local market demands and conditions. This
flexibility enhances their ability to capture
market opportunities.
1 Localization
This approach emphasizes adapting
products, services, and marketing
2 strategies to suit local preferences and
cultural differences. It recognizes the
diversity of markets and aims to create
offerings tailored to specific regions.
3 Cultural Sensitivity
Acknowledging and appreciating cultural
differences, this approach tailors products
and strategies to specific markets. It
recognizes the importance of
understanding local norms and values
when engaging in global commerce.
Transnational Approach