Internatonal Business - Coca Cola Essay

4664 WordsMay 15, 201319 Pages
INTRODUCTION What is International Business International business is a relatively new term, with quite a traditional concept as the ‘name’ was derived from “international trade”. Business transactions that take place across national borders may be the simplest definition of International business. However, Business Dictionary lists two definitions which are: “the exchange of goods and services among individuals and businesses in multiple countries” and “a specific entity, such as a multinational corporation or international business company that engages in business among multiple countries”. International business can be broken down into four types: foreign trade (movement of tangible goods), trade in services (insurance, banking, hotels, consulting, and travel and transportation), portfolio investments (financial investments made in foreign countries), and direct investments (when a firm owns a foreign subsidiary entirely or has partial control). Measurable trends in international business activity include: * Growth in world trade and investment – due to Foreign Direct Investment. * Growth in cross-border mergers and acquisitions – mostly in financial, insurance and telecommunications services * Market liberalization – increasing global competition, thus creating efficiency and economies of scale as Multi-national Enterprises shift production activities to cheaper locations. * Increased regional trading agreements – such as European Union, NAFTA (North American Free Trade Association) making imports and exports within the blocs easier for member countries. International Business is increasing rapidly, resulting in many companies expanding their markets internationally in order to achieve greater market share, growth and profits. The process of international business has since shifted to a global level, i.e. globalization, where

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