Crossing borders is as easy as putting together a website these days. The challenge is taking advantage of international business opportunities by making the best decisions with the best data. Research analysts must look at identifying the best markets and opportunities by customer segmentation, competitive advantage, logistics, taxation, language, political environment, regulation and technology. Looking at these key areas, management can make an informed decision rather than just a judgment call on international trends.
In modern times International trade and the accompanying financial transactions are generally conducted for the purpose of providing a nation with commodities it lacks in exchange for those that it produces in abundance; such transactions, functioning with other economic policies tend to improve a nation’s standard of living and Multinational corporations carry the ardous task in accomplishing the host country objectives simultaneously benefitting their home country interest
Global Satellite TV , increased frequency of international flights, global online banking, Rapid global digital communication through mobile technology and the speedy liberalization of India with rampant establishment of Global SEZs all point towards a massive Globalization wave and integration of the world economies contributing towards the growth of the world trade exponentially. In recent years the establishment of regional trade bodies like European Union, G groups with international capital markets like NASDAQ, inviting foreign equity and investments have made the study of International business absolutely imperative in recent times
The question here is who are the key players, it is the emerging multinational corporations in both manufacturing and service sectors, across the globe which utilize resources making profits and contribute towards the development of the planet as a whole. The Multinationals operating in more than 200 countries across globe are now flourishing in India, you name the product and there will be more than 10 countries minimum in each product category competing within the Indian ,market share.
Heavy mobilization of the factors of production worldwide with focus on global immigration and movement of capital coupled with technological expansion has made the multinationals a giant force to reckon with, the impact is so strong that countries are known by their brands if Coca cola represents US, Vodka is for Russia and Automobiles for Japan and interestingly such MNCs can even create their own cities and a country too .With the rapid expansion of these MNCs Global economies are getting more connected and interdependent, currently it seems that with ameliorating business performance and foreign reserves, nations cannot exist now without each other.
The MNCs now operate in more than a dozen countries for just one finished product and make billions of dollars as profit through repatriation techniques multinational capital budgeting which every business graduate must learn to understand the current trends With the advent of key international monitoring bodies like world bank, International Monetary Fund, World trade Organisation, MNCs are now assured of a secure business system world wide added too even economies are monitored and helped by these institutions to encourage nations to make the best use of globalisation. Hence in this way it can be easily concluded that the study and practice of International Business and MNCs have become a main propelling force behind the expansion of world economy at large.
Written by Mr. Rajnish Shankhdhar, Senior Lecture Amity Business School Lucknow.