FACTOR- GROWTH OF INTERNATIONAL BUSINESS International business is a term used to collectively describe all commercial transactions (private and

governmental, sales, investments, logistics,and transportation) that take place between two or more regions, countries and nations beyond their political boundary. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota, consumer electronics companies like Samsung, LG and Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple national markets. It is generally believed that international trade has been growing recently at a faster pace than it did in earlier years and also at a faster pace than domestic business has been recently. For instance, in the early 1980s, less than 5 percent of U. S. production was sold abroad and approximately the same amount of U. S. total purchases was of imported goods and services. Two decades later, these figures had more than doubled, to little more than 10 percent each. It seems the reasons companies pursue international trade to expand sales, to acquire resources, and to diversify sources of sales and supplies would have applied in earlier periods as well. So what has happened in recent years to bring about the increased growth in international trade? The answer can be found by examining the following four, sometimes interrelated, and factors: rapid increase in and expansion of technology; liberalization of governmental policies regarding cross-border movement of trade and resources; development of the institutions needed to support and facilitate international trade; increased global competition. Expansion of Technology. Much of what we take for granted today results from technology that has been developed only within the last century. Before then, change occurred slowly. In 1620, the Mayflower trip from Plymouth, England, to Massachusetts took over three Hublot Replica Watches months. Another two and a half centuries passed before Jules Verne fantasized that people might go around the world in only eighty days. In recent years, however, the pace of technological advances has accelerated at a dizzying rate, while knowledge of products and services is available more widely and quickly because of tremendous strides in communications and transportation technology. As recently as 1970, there was no commercial transatlantic supersonic travel, faxing, or overseas direct-dial telephone service. Today, the situation is radically different. Traveler can fly from New York to London by Concorde in only three and a half hours, and fax, E-mail and telephone transmissions are almost instantaneous.

In short; several major factors are involved in the growth of international business. One major factor deals with the surge in oil prices, a commodity in great demand by many nations. Beside it other remarkable factors are as fallow:1. Cheap energy and the concomitant low transportation costs. 2. The end of the cold war which allowed for improved relations between the West and India/China and encouraged those two countries to open up. 3. The economic boom in the industrialized countries which lead to greatly increased demand. 4. The development of electronics in general and computers in particular which contributed to the economic boom, to greater demand for goods, and to higher productivity (i.e. lowered costs) in the manufacturing sector. Physical and societal factors Political policies and legal practices Cultural factors Economic forces Geographical influences Competitive factors Major advantage in price, marketing, innovation, or other factors. Number and comparative capabilities of competitors Competitive differences by country There has been growth in globalization in recent decades due to the following eight factors: Technology is expanding, especially in transportation and communications. Governments are removing international business restrictions. Institutions provide services to ease the conduct of international business. Consumers know about and want foreign goods and services. Competition has become more global. Political relationships have improved among some major economic powers. Countries cooperate more on transnational issues. Cross-national cooperation and agreements. So we can say that International business strategy is a critical component of the holistic approach of organizations attempting penetrate international markets successfully. Business organizations have to create approaches which will cater to all organizational facets such as marketing, human resources management, operations management, risk management and other critical aspects of an organization if they have to put together feasible international strategies, which will suffice in overcoming challenges of entering international markets. Although there is ongoing debate on multinational corporations strategy over the approaches like standardization versus adaptation there is confluence of ideas and the recognition that multinationals have to put together working and feasible business strategies that will suffice for the volatile and distinct environs in which international businesses operate. There are various factors that exert significant pressure on international businesses to formulate working short term and long term strategies germane to the accomplishment of their objectives and goals. Upon the underlying fact that human needs are basically the same across countries and communities, sticking variances obtain in aspects cultural, economic, geographic, political etc. This means that international business management organs must be at the top of the game in

ensuring that policy and strategy are appropriately aligned to yield desired results Corporate strategy focuses on wide and far reaching goals and purposes of an organization.