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Why international business?

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International business can be defined as the exchange of goods and services among business in two different country. The exchange includes goods, services, technology, capital and knowledge. International business is also can be define as the study of internationalization process of multinational enterprises (MNE). MNE is a company that has a worldwide approach to markets, production and operations in several countries. International business consists of a large and growing portion of world business. When a company had decided to go global and to enter international market, there must be for a many reasons and objectives. With this different objective at the time of entry, it should result in different strategies, performance goals, and even forms of market participation.

The advantages of doing international business are:

  • Potential to growth
  • When a company go to do businesses globally, their main objectives is to make their company growth bigger and to be more successful. This will likely increase the company’s revenue. Furthermore, if the company has a unique product or technological advantages that is not available to other competitors in that country, this will give advantages to the company.

  • Encouragement to industrialization
  • With the exchange of technological know-how, it will help underdeveloped and, developing countries to establish new industries with the assistance of foreign aid. Because of that, international business will help in the development of industry.

  • Improved international relations
  • When doing international business, it will remove rivalry among the countries and it also promotes peace and harmony. The policy of a free international trade environment will strengthen the economics of all the country. With the competition from import and export activity, it will result in lower price, better quality of the products and wider of selection. Doing international business also can make lots of new jobs and can improve the economic conditions.

Benefits of doing international business in japan:

  • Dedicated employees
  • In japan country, loyalty and cooperation are valued over aggressiveness and competiveness. Japanese tend to pride in their job and they are willing to work in long hour in order to demonstrate their dedication hoping to increase the company’s status. Because of this, international company can have made lots of profits from the attitude and dedication of Japanese people. This will attract more foreign company to doing business in japan.

  • Strong work ethic
  • Japan is a country that has a predominantly collective society which places a huge emphasis on the group that means each of the individual often feels a strong sense of belonging and has responsibility towards their own work place. Furthermore, in japan, leadership skill is very important. The boss is willing to listen to their employee’s problem and they even try to solve it. Because of this, doing business in japan give lots of benefits to the company

  • Gateway to Asian market
  • In Japanese country, doing business in the country offers an exciting and stable business market open to trade and foreign investment. Especially doing business in the fields of environment, IT, healthcare and automotive. With the Japan’s huge economy, it has already boasts an established base of the world’s top companies. Besides that, doing business in Japan also has the added benefit of working in the showroom for the rest of Asia.

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GradesFixer. "Why international business?" GradesFixer, 11 Feb. 2019, https://gradesfixer.com/free-essay-examples/why-international-business/
GradesFixer, 2019. Why international business? [online] Available at: <https://gradesfixer.com/free-essay-examples/why-international-business/> [Accessed 12 July 2020].
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