WHAT IS INTERNATIONAL BUSINESS? || WHY STUDY INTERNATIONAL BUSINESS? (TAGLISH WITH ENGLISH SUBTITLE)

Summary

This lesson delves into the evolution and nature of international business, highlighting the pivotal role of globalization. It underscores how businesses like Jollibee transition from domestic to international, affecting their strategies and goals. The lecture also addresses the multifaceted transactions beyond monetary exchanges, including resources and intellectual property. The current pandemic's impact on global businesses is a case study, emphasizing the necessity to understand international business dynamics for strategic planning and problem-solving in a borderless economy.

Takeaways

• 🌐 **Global Reach**: International business involves the production or distribution of goods and services across national borders.
• 📚 **Evolution**: The concept of international business evolved through globalization, leading to more interdependent and integrated economies.
• 🏢 **Business Expansion**: Companies like Jollibee Foods Corporation (JFC) are considered international businesses once they expand beyond their domestic markets.
• 🔍 **Definition**: According to sailor.org, international business is defined by any cross-border activity in production or distribution.
• 💼 **Transactional Nature**: Sinha, P.K. defines international business as all commercial transactions between two or more countries, including non-financial exchanges.
• 🌍 **Globalization Impact**: Globalization has created opportunities for businesses to operate internationally, affecting their strategies and operations.
• 🤝 **Resource Exchange**: International business involves the exchange of resources such as human capital, intellectual property, and contractual assets.
• 🏭 **Advantages and Disadvantages**: Engaging in international business can provide access to foreign assets but also comes with potential disadvantages.
• 🌟 **Non-Financial Gains**: There are non-financial benefits to international business, such as corporate social responsibility and political favor.
• 📈 **Relevance**: Studying international business is crucial as most companies are now engaged in it, affecting their operations on a global scale.
• 🌱 **Pandemic Impact**: The pandemic has shown the importance of understanding international business, as it has affected companies worldwide.

Q & A

What is the main objective of the lesson on international business and trade?

The main objective is to understand the evolution of international business, the factors leading to its engagement, the nature of international business, the influences affecting it, the goals of companies engaging in it, and how to strategize and solve problems related to international business, especially in the context of a pandemic.

How does the script define international business?

According to sailor.org, international business is defined as any situation where the production or distribution of goods or services crosses country borders.

What is an example of a company that transitioned from domestic to international business?

Jollibee Foods Corporation (JFC) is given as an example. It started as a domestic company in the Philippines and became an international business when it expanded its branches to other countries.

What is another definition of international business provided by Sinha, P.K.?

Sinha, P.K. defines international business as consisting of all commercial transactions, private and governmental, between two or more countries, which includes not just the exchange of money for physical goods but also the transfer of resources like people, intellectual property, and contractual assets or liabilities.

How does the script relate the concept of globalization to the start of international business?

The script suggests that international business started with globalization, which is the shift towards a more interdependent and integrated global economy, creating greater opportunities for businesses to venture internationally.

What are some non-financial gains that can affect a business engaging in international business?

Non-financial gains include corporate social responsibility and political favor, which can influence the business's future.

Why is it important to study international business according to Mittal, 2012?

It is important to study international business because most companies are engaging in it, and global events, such as the pandemic, affect businesses regardless of their size, as they often sell outputs or obtain raw materials and supplies from other countries.

How does the pandemic situation exemplify the importance of studying international business?

The pandemic, affecting not just one country but the entire world, demonstrates the interconnectedness of businesses and the need to understand international business dynamics, as it impacts both domestic and international operations.

What are some strategies that can be used to address international business problems arising from the pandemic?

The script suggests strategizing on how to solve problems related to international business in a pandemic situation, although it does not provide specific strategies. This could involve adapting to new market conditions, leveraging digital technologies, or exploring alternative supply chains.

What are some examples of resources that can be transferred in international business as mentioned in the script?

Examples include the transfer of human resources, as seen in BPO companies, and intellectual property such as patents, copyrights, and data.

How does the script explain the advantages and disadvantages of a company venturing into international business?

The script mentions that venturing into international business can provide advantages such as access to foreign assets and resources, but it can also be a disadvantage due to the complexities and challenges that come with operating in different countries and dealing with various regulations and cultural contexts.