Culture & Strategy - Alphabet Games

In: Business and Management

Submitted By amyhealy
Words 2728
Pages 11
International Business
Chapter 1
What is international Business

Key Concepts In International Business * International Trade - describes the exchange of products and services across national borders * Exchanges can be made through exporting or can also take the form of: * Importing or Global Sourcing - the procurement of products or services from suppliers located abroad for consumption in the home country or a third country. * International Investment - refers to the transfer of assets to another country or the acquisition of assets in that country. Economists refer to such assets as factors of production and they include capital, technology, managerial talent and manufacturing infrastructure. * Foreign Direct Investment - is an internationalisation strategy in which the firm establishes a physical presence abroad through acquisition of productive assets such as land, plant, equipment, capital and technology. It is a foreign-market entry strategy that gives investors partial or full ownership of a productive enterprise. * International portfolio investment - refers to the passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns.

International portfolio investment and foreign direct investment are the two essential types of cross-border investment.
The Nature of International Investment
Foreign direct investment (FDI) is the ultimate stage in internationalisation and encompasses the widest range of international business involvement. Firms engage in FDI to establish: * A factory or other facility to produce products or services * A sale of rep offices to conduct marketing or distribution activities. * A regional headquarters

How does International Business differ from Domestic Business

The Four Risks In Internationalisation * Cross-cultural Risk -…...

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