International business defined as conducts business transaction all over the world. This transaction is including the transfer of services, good, technology, managerial knowledge and capital to the other countries. It also involves exports and imports. To lead business and abroad, multinational organizations need to isolate national market to one worldwide marketplace. There are two scale of factor that underlines the pattern of greater globalization. The first factor is eliminating barriers to make cross-border trade easier. As an example the free flow of goods and services and capital. Next, the second is technological change especially advancements in correspondence, data preparing and transportation technologies.
In international business, there were some features that describe the meaning of international business itself. The first thing is it conducts with a large scale of operations. It first offers its products in the local market. Then, the surplus products are traded. Then, the integration of economies which mean the economy that combines with other countries. This is because labor, finance and infrastructure that used are difference. The example is if a product is design at German then the parts that used is from China and the product are sell in many countries. International business also dominated by developed countries such as USA, Europe and Japan. This is because they have large and stable of financial and also other resources. Moreover, their R&D that has been developed is using the best technology so that all their product are in best quality. They also have highly skilled employees and managers because they give very high salaries and other benefits.
Furthermore, International business also will give benefits to the country that participate. However, as usual the developed countries will get more benefits while the poor countries will get it less. They will get more employment opportunities, foreign capital and technology and also rapid industrial development. Besides, the international business is very sensitive in nature. It will be huge impact if any changes happen regarding of political, economic policies, and technology. Therefore, international business must conduct marketing research to find out and study these changes. They must adjust their business activities and adapt accordingly to survive changes.
Culture defined the accepted norms and values and traditional behavior of the group. Each of the country has their own culture and they have own belief, values and activities. It also a key component of business and has an impact on the strategic direction of business and will encompass as organization’s values, visions, working style, habit and also beliefs. As we know, culture is important things when we deal with multinational company. Every country has their own culture that the organization followed.
The culture that will give impact to organizations is in terms of communication, workplace etiquette, and also organization hierarchy. However, to deal with international business, an effective communication will play an important role in business. According to International Business School article, in many international companies, English is the de facto language of business. Most of the company will use English to communicate with other people but some of the small company will use their mother touge to deal in business.