International Business Concepts | Reasons for IB Expansion Domestic vs IB | Dr. Binod Linden Subba

Summary

This video script discusses the Kobarima model of international business, focusing on globalization's impact. It outlines reasons for expansion, such as increasing sales, profit, and brand presence, and obtaining export incentives. The script differentiates between domestic and international business, emphasizing the latter's cross-border transactions and the importance of adapting to foreign environments and competition.

Takeaways

• 🌐 The Kobarima model is discussed in the context of globalization and international business.
• 📈 International business expansion is driven by motives such as increasing sales and profit, achieving economies of scale, and minimizing risks.
• 💡 The pursuit of export incentives and the need to access foreign markets are also reasons for businesses to go international.
• 🌟 Businesses aim to enhance their brand presence and acquire resources that may not be available in the domestic market.
• 📊 Domestic markets, when saturated, push businesses to seek growth opportunities in foreign markets.
• 🏢 Domestic business is defined as operations conducted within a country's geographical boundaries.
• 🔄 International business involves cross-border transactions and is influenced by a different set of environmental factors compared to domestic business.
• 👥 Human resources play a critical role at every level of business, whether domestic or international.
• 🌍 The success of international business is influenced by factors such as the environment, opportunities, and birth rates in foreign countries.
• 📉 Domestic business is influenced by local factors, while international business faces global influences and competition.

Q & A

What is the Kobarima model mentioned in the transcript?

The Kobarima model is not explicitly defined in the transcript, but it seems to be a reference to a model related to globalization and international business.

What does the term 'globalizing international business' imply?

Globalizing international business refers to the process of expanding a business's operations across national borders to conduct commercial transactions in multiple countries.

What are the reasons for international business expansion as mentioned in the transcript?

The reasons for international business expansion include increasing sales and profit, achieving economies of scale, obtaining export incentives, minimizing risks, increasing brand presence, accessing new markets, and acquiring resources when the domestic market is saturated.

What does the transcript mean by 'economies of scale'?

Economies of scale refer to the cost advantages that a business obtains due to expansion, allowing it to produce goods or services at a lower per-unit cost as its scale of operation increases.

How does international business differ from domestic business according to the transcript?

International business involves commercial transactions across national borders, while domestic business is conducted within a single country's borders.

What is the role of human resources in domestic and international business as discussed in the transcript?

Human resources play a crucial role at every level of both domestic and international business. They are essential for the success of operations in any market.

What is the significance of the term 'foreign' in the context of international business as used in the transcript?

The term 'foreign' in the context of international business refers to anything that is outside of one's own country, such as foreign markets, foreign competition, and foreign operations.

What is the impact of birth rate and environment on international business as hinted in the transcript?

The birth rate and environment can influence international business by affecting market size, consumer behavior, and the availability of a workforce.

How does competition differ between domestic and international business?

In domestic business, competition is limited to local or national companies, whereas international business faces competition from global companies across different markets.

What is the importance of understanding the domestic business environment according to the transcript?

Understanding the domestic business environment is crucial for businesses to thrive within their home country, as it helps them navigate local regulations, consumer preferences, and market dynamics.

What are some of the challenges that international businesses might face as suggested by the transcript?

International businesses might face challenges such as cultural differences, legal and regulatory complexities, currency fluctuations, and geopolitical risks.