What is international business and why should it be developed?
International business is what has allowed the entire planet to take steps together towards the evolution of the economy and the resolution of the needs of populations in different places.
Find out in this article what international business is, what is its importance and why every company should bet on it.
What is international business?
International business is defined as private and governmental transactions involving two or more countries. This concept involves sales, investments and transportation.
Among the main types of international business we can find the export and import, as well as the case of foreign direct investment. Among the secondary types, to call them in a certain way, we can find management contracts, franchises, among others.
So, these businesses cover a wide range of border exchanges involving goods, services or resources between nations. Such exchanges have the capacity to go beyond the simple exchange of money for physical goods.
An example of international business that does not necessarily involve the acquisition of a good would be offering services to prospective foreign customers, the right to use an asset abroad, or a complex financial instrument, without the need to carry it with you.
In international negotiations we may encounter the fact that the intercultural communication, customs and cultural traditions of nations take precedence. In the case of the Americans, to give an example, we can verify how short-term results prevail and they are not so focused on cultivating personal relationships.
The opposite is true for the Japanese, for example, who always make decisions that will have a greater impact in the long term. But for them it is vitally important to be able to establish a certain level of friendship before closing any kind of deal.