International Business

INTERNATIONAL BUSINESS AROUND US

A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. (Buckley & Casson, 2011, p.43)

Areas of study within this topic include differences in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local culture, corporate culture, foreign exchange market, tariffs, import and export regulations, trade agreements, climate, education and many more topics. Each of these factors requires significant changes in how individual business units operate from one country to the next

THEORIES OF INTERNATIONAL BUSINESS

International trade is the purchase, sale or exchange of goods and services across national border. International trade produces many benefits to countries both exporting and importing products. For countries importing products, the benefits are that they get goods or services they cannot produce enough of on their own. Likewise, for the exporter, one of the benefits is though the trade they can also get either the goods or services they need or the money in which to purchase these goods from another country or source. International trade also helps the economic of the countries (Buckley & Casson, 2011, p.48)

International trade encompasses many aspects in relation to various countries. There are many theories regarding international trade. Some of these include mercantilism, absolute advantage, comparative advantage, factor proportions theory, international product life cycle, new trade theory and national competitive advantage. (Buckley & Casson, 2010, p.67)

References:

Czinkota, M. R., Ronkainen, I. A., Moffett, M. H., Marinova, S., & Marinov, M. (2009). International business (Vol. 4). Dryden Press.

Buckley, P. J., & Casson, M. (2010). A theory of cooperation in international business (pp. 41-67). Palgrave Macmillan UK.

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