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All business activities that crosses the national boarders are the part of International Business. Though a number of definitions can be found on international business in the business literature such as; ………

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But no simple or universally accepted definition exists for the term international business. On one end, International Business is defined as organizations which buys and/or sells goods and services across two or more national boundaries, even if management is located in a single country. On the other end, international business is equated only with those big enterprises, which have operating united outside their own country. (add the notes part)


In its traditional form of international trade and finance as well as its newest form of multinational business operations, international business has become massive in scale




The Environment in which organization operate is constantly changing with different factors influencing the organizations.  The general business environment has become more volatile, Unpredictable and very competitive. Coping with the increasingly competitive environment has called on firms to rethink their marketing strategies (Pearce and Robinson, 2005). The days when firms could simply wait for their clients to turn to their door are long gone. Organizations must realize that their services and products, regardless of how good they are, simply do not sell themselves (Kotler, 2000). An Organization is an open system due to which they are in continuous interaction with the environment in which they operate. Firms depends on its environment for resources and a profitable market for their goods and services. All organizations lend themselves to this environment which is highly dynamic, chaotic and turbulent that it is not possible to predict what will happen and or when it will happen. Consequently, the ever-changing environment continually presents opportunities and challenges (Mintzberg and Quinn, 1988).


The factors which exists outside company which is also known as the external environment

of a company affects the company’s ability to function. Some External elements can be manipulated by company marketing, while others require the organization to make adjustments and monitor the basic components of a company’s external environment, and keep a close watch at all times (Pearce and Robinson, 2005)




Business are affected by an eternal environment as much as they are affected by the competitors (Strange 1988, Summary 1989). While developing a business strategy is very important to understand these factors.

It is very important for business to understand their environment and changes occurring in it. Business enterprises which know their environment and ready to adapt to environmental changes would be successful. On the other hand, the firms which fail to adapt to their environment are unlikely to survive in the long run. For example, some Indian firms suffered considerably because they failed to appreciate the tightening regulations against environmental pollution. Knowledge of environmental changes is very helpful in the formulation and implementation of business plans. A business firm can obtain this knowledge through environmental scanning. Organizations monitor their relevant environment to identify opportunities and threats affecting their business such process is known as environmental seanning.



Quick Look at factors effecting International Trade 

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