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Definition :
According To Beamish “international Entrepreneurship the process by
which firms both increase their awareness of direct and indirect influence of
international transactions on their future and establish and conduct transition
with other countries.”
Nature of international entrepreneurship :
5. The activities necessary for ascertaining and satisfying the needs and wants
of target consumers often take place in more than one country.
IMPORTANCE OF INTERNATIONAL
ENTREPRENEURSHIP TO FIRM
1.Economic system :
when an entrepreneur is operating in national level he is required
to understand economic conditions with in country, but at international level
he should be having information about economic system of countries he
running business which includes currency rate, phase of business cycle etc.
3.Balance of Payments:
A country’s balance of payments affects the valuation of its
currency. This economic variable will affect how companies do
business in other countries. with the present system of flexible
exchange rates, a country balance of payments affects the valuation
of its currency and valuation of one country's currency affects
business transactions between countries
4.Cultural sensitivity : entrepreneur operating at national level
should understand cultural issues persisting in home country
and at international level he has to understand and manage
cultural diversity of customers as well as employees in
company.
8.Language:
Sometimes one of the biggest problems is finding a translator. A
significant problem can occur when careless translation occurs. To
avoid errors like these, care should be taken to hire a translator
whose native tongue is the target language and whose expertise
matches that of the original authors.
TRAITS OF AN INTERNATIONAL
ENTREPRENEUR
1.Embraces change:
STAGES OF ECONOMIC DEVELOPMENT
1.TRADITIONAL SOCIETY : every economy begins with traditional
society which is characterised with low per capita income and low
degree of technical know how
Features :
Country is more or less dependent of agriculture for development in
country.
Features :
Development of more productive, commercial agrical and cash crops not
consumed by producers were largely exported .
People start giving importance to national and international developments
then merely confining them to social issues.
Part of government revenue is imparted towards infrastructure development
in country.
Decline in birth rate
Citizens of country give more importance on developing personal skills in
order to face competition in country.
Focus towards foreign trade
Development of national identity and shared economic intreset
3 TAKE OFF STAGE : in this stage economy is no more dependent on other
countries and is self sustaining in this stage. Economy can progress without
any external support from other countries.
Features :
Development of various sectors like primary, secondary and tertiary sector
takes place in the country.
Social framework improves as citizens than being bonded with family focus
on moving to places for career growth and development.
Reinvestment of profit
Increase in demand for products by consumers in market.
Technical development
4. SELF SUSTAINED STAGE/ : this stage can be defined as stage in which
an economy demonstrates the capacity to move beyond the original
industries which provides the take off and to apply efficiency over its
worldwide range of resources.
Features :
rise in the rate of investment in the country
Conditions of employment improve and reduces dependency on agriculture.
Modern techniques are used during the process of production in country.
New political as well as social institution are established in country.
Dependency on other countries are considerably reduced.
Rapid development in transportation infrastructure
Large-scale investment in social infrastructure
(schools,universities,hospital)
5. STAGE OF ECONOMIC AFFLUENCE : in this stage there is
considerable increase in production and income. Consumption of comforts
and luxuries become a common feature.
Features :
More power : country in this stage starts spending more on military forces.
Welfare state : standard of living in country increases as result of
development of facilities in country.
Increase in consumption : consumption level increases in this stage as
consumers other then daily consumption products prefers purchasing
durable products
Consumers typically (if not universally )have disposable income, beyond all
basic needs, for additional goals.
ENTREPRENEURIAL ENTRY INTO NEW BUSINESS
Politic Lack of
al finance
barrier
Barriers to
international
trade
Human
Tariff
resource
barriers
barrier