Editing Content :: Admin Scraper

Chapter

Content type

Position

Value

INTERNATIONAL BUSINESS 249 The international business as it firms from engaging in international exists today is to a great extent the business in a later section. result of geographical specialisation as pointed out above. Fundamentally, it 11.1.3 International Business vs. is for the same reason that domestic Domestic Business trade between two states or regions within a country takes place. Most Conductingandmanaginginternational states or regions within a country business operations is more complex than undertaking domestic business. tend to specialise in the production Becauseofvariationsinpolitical,social, of goods and services for which they cultural and economic environments are best suited. In India, for example, while West Bengal specialises in jute across countries, business firms find products; Mumbai and neighbouring it difficult to extend their domestic business strategy to foreign markets. areasinMaharashtraaremoreinvolved To be successful in the overseas with the production of cotton textiles. The same principle of territorial markets, they need to adapt their division of labour is applicable at the product, pricing, promotion and international level too. Most developingdistribution strategies and overall business plans to suit the specific countries which are labour abundant, requirements of the target foreign for instance, specialise in producing and exporting garments. Since they markets (see Box B on Firms need lack capital and technology, they to be Cognisant of Environmental import textile machinery from the Differences). Key aspects in respect of which domestic and international developed nations which the latter are in a position to produce more businesses differ from each other are efficiently. discussed below. What is true for the nation is more (i) Nationality of buyers and sellers: or less true for firms. Firms too engageNationality of the key participants (i.e., buyers and sellers) to the business in international business to import what is available at lower prices in deals differs between domestic and other countries, and export goods to international businesses. In the case other countries where they can fetch of domestic business, both the buyers and sellers are from the same country. betterprices fortheirproducts.Besides price considerations, there are several This makes it easier for both the parties other benefits which nations and firms to understand each other and enter derive from international business. In into business deals. But this is not the a way, these other benefits too provide case with international business where buyers and sellers come from different an impetus to nations and firms to engage in international business. We countries. Because of differences shall turn our attention to some of in their languages, attitudes, social these benefits accruing to nations and customs and business goals and Reprint 2026-27