International Business Strategy

The definition of international business is all commercial transactions that take place between two or more nations. This can include private transactions, government transactions, investments, and transportation. Private companies partake in international business for profit while governments partake for political reasons.

In the 1960s, multinational businesses became an interest for economists.¹ Multinational corporations were treated as byproducts of the post-World War II era; international financial integration and improvements in communications technology led to the international expansion of corporations.¹ Multinational corporations are seen as truly “American-style” corporations, where companies expand across borders in order to increase already huge profits.¹ The industrial sectors were the first to expand internationally from America, which included the natural resource and manufacturing sectors.¹

There are definitive challenges to international business. The first is that there are usually cultural differences between the two countries doing business. Some countries protect their industries in order to keep them culturally significant to their population. Additionally, what might be an acceptable business practice in one country, such as bribery, may be frowned upon in other countries. Even the way that clients are greeted differs from country to country. Furthermore, international expansion usually means a redistribution of jobs and positions in order to decrease a company’s operating costs. When jobs and factories are outsourced, displaced employees will have to find new jobs. This is especially true with manufacturing, where companies outsource in order to take advantage of cheap labour costs. Also, the business laws of foreign countries are all different. What is legal in one country may be illegal in another country. An example might be minimum wage and working condition laws. America and developed nations have very high minimum wages in order for employees to live more comfortably while developing nations have low wages because living costs are lower.

There are also positives to international business. First, companies that expand internationally experience faster growth. Companies that open themselves up to foreign direct investment grow at a much quicker pace than those that stay closed. Also, imports are cheaper for countries that open themselves up to international business; the removal of tariffs and duties reduces importing costs, making many goods cheaper. Lastly, opening up borders to international business allows increased investment opportunities. Companies can move capital to whatever country offers the best investment opportunities. This prevents capital from being trapped in domestic markets where it might earn poor returns.


1.  Taylor, G. D. The Evolution of International Business. Retrieved from

Categories within International Business Strategy


Postings: 399

A process of integration that occurs between all the different nations of the world.

Outsourcing in the United States Outsourcing is a highly controversial issue in the United States with many citizens calling for the government to take some actions to prevent companies from outsourcing. After reading the following article, give your opinions on this issue.

Companies Going Abroad

Fatehi discussed the MNC executives' state of mind towards foreign people, ideas, and resources, at home and abroad. As a domestic executive, considering the expansion to international markets, determine two (2) methods to address the different people, ideas, and resources for this expansion.

Aiding situations where network performance is degraded

Consider the various uses for network devices like routers, switches, hubs, repeaters, etc. and how one or more of them would aid situations where network performance is degraded. Provide some details about your scenario: why you chose the particular device or devices to solve a poor network performance and reasons why the devic

Enterprise Networks: Bus or Star Topology

Let's say that your company is in the process of upgrading the network infrastructure, which involves moving from a 10BaseT to 100BaseT network. Currently, they use bus topology in the network. As a member of the data network team, you are asked to take care of a portion of this upgrade. And, you would also like to suggest they

Discuss: Enterprise Networks

The OSI data link layer is responsible for physical addressing, network topology, error notification, sequencing of frames and flow control. IEEE has defined numerous protocols used with TCP/IP at the OSI data link layer. They are called the IEEE 802 Standards. Choose one of these IEEE 802 standards and discuss with your classma

Ikea and cultural sensitivity

Ikea gets slammed for cultural sensitivity. From the LA Times (with one picture of a mom and son, another of just the son with mom removed). If a Saudi company were advertising its home goods in the United States, we would expect its marketing materials to include photos of both men and women, and we would expect most of the wo

Principles of Information Systems

Lets say you work for a hospital and most of the tasks in your organization are performed manually. The organization has decided to develop an information system to automate the process in the organization. A business analyst has come to your office to ask you questions (since you were designated the go to IT person) about how y

Enterprise Networks

Computer networking has made some significant changes in all our lives. Network standards are essential in network communications. Consider your life today and how it would be different without networking and standards. 1. List and discuss at least three major ways your life has been impacted due to the ability to communicate o


On one of the Internet search engines, can you type, "Top 100 companies to work for." Pick one of the companies on the list that interests you and answer these questions: 1. What company did you choose and why? 2. List at least 3 different types of employees in that business. 3. What information does each of the employees yo

Time management in fast-paced work environments

Your expertise would be greatly appreciate how exactly to set this up: Pick a couple of the most important resources from each activity on the list about them in your paper. You can also include any resources you have discovered on your own. 1) National Association for Business Economics' career center 2) Career center fi

Motivation to Return to School

Clearly you value intellectual growth (unifying principle) Going back to school is a goal that brings your performance circle closer to your value (self-unification) Did you have a wake-up call related to starting a degree program? What motivated you to go back to school?

International Management Questions

The appropriability of technology deals with: • technology that has been illegally appropriated by a foreign government • how appropriate the technology is for generating long-term profit • how easily the technology can be learned and used by the host nation employees • the ability of the firm to profit from its te

Organizational Structure: Reporting Systems and Subsidiaries

The MNC might practice a modified structure where the headquarters is the hub and the subsidiaries are the local entities. This allows the functions of finance and management to occur in the headquarters, but resource acquisitions and labor to be a local plan. Administrative systems and IT are created and handled within the basi

Cut Off in International Trade

I am looking for ideas of products to focus on for a project and need help with the following to narrow it down: 1) If the countries suddenly cut off all trade with one another, what products might be unavailable in the U.S? 2) Without trade what products might those in Ireland no longer be able to obtain?

Culture in Business and Society

I need help in answering questions on how cultural variables affect business. How are each of the following components of culture important in the situation questions below: aesthetics, values and attitudes, manners and customs, social structure, religion, personal communication, education, physical environment? 1. Thinking o

International Business Practice Test

Please help me with this practice test of international business questions so I can prepare for the real ones. The first true/false ones need not be answered. Thank you.

Japanese Culture Discussion

What I need to know is what is it meant by gusoku ("My stupid son") or gusai ("My stupid wife") in Japanese, and are these sayings considered hypocrisy in expressing one's self modestly in this way among the Japanese. Do you have any documentation or e-books on the Japanese culture and or the expressing of language in Japan and

People Management, the Mantra for Success: The Case of Singhania and Partner

1/ Examine the case of Singhania and Partners and evaluate the organization's strategy. 2/ Evaluate each of the five IHRM practices with respect to recruitment and selection, training for cross-cultural adaptation, management development, evaluation, and compensation 3/ Discuss which of the five practices can be imp

Beverage Trends of Coca-Cola

How has the beverage trends affected the domestic operating environment of Pepsi or Coke? How has the companies' international volume been the last few years?

International Business Environment

What are the advantages and disadvantages of foreign ownership of public utilities such as electricity, water supply, airports, harbors, and so on?

Implementation and Control of a business

ToolsCorp Corporation is a fictitious company. For the purpose of this course, we have located it in Tennessee. As members of the senior management team of ToolsCorp Corporation, I have been been asked to prepare a neat and organized report for the Strategic Officers Steering Committee (SOS-C) of ToolsCorp Corporation. The pur

Tata Motors and the Fiat Auto: Joining Forces

Case study found on this link - Explain the business opportunity in India. - Based on your understanding of the case, explain if Fiat can benefit from a partner and provide your rationale. - Discuss whether Fiat and Tata

International business ethics and behaviour

Locate a recent news story related to ethics in international business and summarize which of the straw men approaches applies to the behaviour or decision-making process: Friedman doctrine, cultural relativism, righteous moralist or naive immoralist.