International Business: What are they and what is their importance?
International business is highly relevant to a country’s economy, since it promotes growth, encourages foreign investment, and increases the quantity and quality of products in various markets outside the country’s borders, increasing the competitiveness of companies. Therefore, it is a determining area for foreign trade and commercial exchange.
What is international business?
Simply put, it is a business transaction involving private or government participants from two or more countries. They involve sales, investments, logistics, and transportation of goods and services. These operations include resources of various kinds and occur between people, organizations, or groups of different types.
As Agustín Cue Mancera explains in his book International Business in a Globalized World (2015), this activity “contemplates the acquisition of inputs in one country and their shipment to another for processing or assembly, the shipment of finished products for sale in another country, the construction of a plant abroad or the use of credit obtained in one country to finance activities in another”.
It is important to note that thanks to the internet, and the wide range of international merchandise transfer services, it is possible for small or medium-sized companies to reach customers from other parts of the world. In this way, when an international business is valued, it is very necessary to consider the political, social, economic, legal, cultural, historical, and ethical aspects that are part of this sector. What Is International Business?
Importance of international business
International business is very important for the growth of nations and for the international expansion of organizations. In this sense, foreign trade has allowed companies in the world to achieve a greater reach and penetration in global markets, through a commercial exchange of products, among other activities.
The vast majority of countries are part of the globalization process, a phenomenon that facilitates the marketing of goods or services, as well as the diversification of financial capital and direct investment. It also favors the mobilization of human talent to work in foreign environments.
International business is also essential when it comes to exporting. And it is that among the reasons why companies decide to export their products or services, is to be able to place them in markets that allow them to generate income higher than what they obtain in their national market so that abroad they have more opportunities to make business. For this reason, this area is essential to comply with the following aspects:
- It serves to satisfy the needs of internationalization of companies and the wishes of customers.
- It affects the economy, through the determination of prices.
- It generates sources of employment.
- It offers various opportunities for companies to generate profits in other markets.
Are you interested in finding out What is the focus of the SNHU MBA?
Physical, social and economic factors that are very important for the countries intervene in international business operations, highlighting public policies, legal practices, tax regulations and geographical influence. In addition, they have to see the strategies established for the commercialization of products and services, as well as those that exalt the competition and the experience of the company in the market.
SNHU Master of International Business
Southern New Hampshire University offers the opportunity to study online to train experts in various topics in Latin America, in this case, it offers the possibility of accessing a master’s degree that is very relevant today. This is the MBA with a concentration in International Business that allows the development of effective strategies to evaluate and manage global organizations.
In this way, the graduates of this MBA have the possibility of working in the expansion of companies towards international markets, managing the various cultural, economic, political, and legal environments that may arise. In addition, they can apply international business theories and concepts in various organizations and also assess global phenomena in a variety of contexts. Find out about the curriculum of this program in the article What does the MBA in International Business teach?
The online MBA prepares you to be a leader, with the ability to work effectively in national and multinational organizations. For its part, it allows you to have a degree with certification in the United States, avoiding the need for a VISA or taking the TOEFL exam. Likewise, it guarantees you constant academic advice and flexible payment options, during the 10 months of the program