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.

Outlines

00:00

🌐 Introduction to International Business

The script introduces the concept of international business and trade, aiming to help learners understand its evolution and the factors that led to its engagement. It emphasizes the importance of discussing the nature of international business, including the influences and goals of companies that operate on a global scale. The instructor also addresses the current pandemic's impact on international businesses and encourages strategic thinking to tackle arising problems. The definition of international business is provided, highlighting cross-border transactions and examples like Jollibee Foods Corporation. The role of globalization in fostering international business opportunities is discussed, along with different types of transactions beyond monetary exchanges, such as the transfer of human resources and intellectual property.

05:02

📚 Engaging in International Business

This section delves into the practical aspects of engaging in international business, including agreements with foreign governments and the rights granted to foreign entities, such as mining companies. It discusses both the advantages and potential disadvantages of international business ventures. The script also touches on non-financial gains like corporate social responsibility and political favor. The importance of studying international business is highlighted, with a focus on the global impact of events like pandemics on businesses, emphasizing the need for understanding international business dynamics in today's interconnected world.

Keywords

💡International Business

International Business refers to the economic activities that involve more than one country, including the production, distribution, and exchange of goods and services across borders. In the script, it is discussed as the main theme, with examples like Jollibee Foods Corporation expanding from the Philippines to other countries, thus becoming an international business.

💡Globalization

Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. It is mentioned as the starting point of international business, creating opportunities for businesses to operate beyond their domestic markets.

💡Commercial Transactions

Commercial Transactions are business activities involving the buying and selling of goods and services. The script uses this term to describe the essence of international business, which includes not just monetary exchanges but also the transfer of resources like people and intellectual property.

💡BPO Companies

BPO Companies, or Business Process Outsourcing Companies, are organizations that provide business services to other companies, often across international borders. The script mentions BPOs as an example of how human resources are exchanged in international business.

💡Intellectual Property

Intellectual Property refers to creations of the mind, such as inventions, literary and artistic works, designs, and symbols, names, and images used in commerce. In the context of the script, intellectual property includes patents, copyrights, and data, which are transferred or licensed in international business dealings.

💡Contractual Assets or Liabilities

Contractual Assets or Liabilities are rights or obligations that arise from agreements between parties. The script discusses how international businesses often involve agreements with foreign governments, which can grant rights to use local assets or incur liabilities.

💡Pandemic Situation

The term 'Pandemic Situation' is used in the script to describe the global impact of the COVID-19 pandemic on businesses, particularly international ones. It illustrates how events on a global scale can significantly affect international business operations.

💡Strategize

Strategize means to make plans to achieve a specific goal. In the script, strategizing is discussed in the context of addressing problems arising from international business, especially in the face of a pandemic.

💡Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a self-regulation by businesses whereby they contribute to social, environmental, and economic development. The script mentions CSR as a non-financial gain that can impact the future of a business engaged in international activities.

💡Political Favor

Political Favor refers to the support or advantage given by a government or political entity. In the context of the script, political favor can be a factor that influences the success of international business ventures, especially when it comes to accessing resources or markets.

💡Domestic Company

A Domestic Company is a business that operates within its home country and does not engage in international trade. The script contrasts domestic companies with international businesses, using Jollibee as an example of a company that transitioned from being domestic to international.

Highlights

Introduction to the lesson on international business and trade.

Objective to understand the evolution of international business.

Discussion on the factors that led to the engagement in international business.

Describing the natures of international business.

Identifying influences that can affect international business.

Exploring the goals of companies engaging in international business.

Strategizing solutions to international business problems in a pandemic situation.

Defining international business as per sailor.org.

Example of Jollibee Foods Corporation as an international business.

Globalization as the starting point of international business.

Definition of international business by Sinha, P.K., including commercial transactions between countries.

Exchange of human resources in international business, exemplified by BPO companies.

Intellectual property as part of international business transactions.

The impact of government agreements on the use of foreign assets in international business.

Non-financial gains in international business such as corporate social responsibility and political favor.

Importance of studying international business according to Mittal, 2012.

The relevance of international business study in the context of the global pandemic.

Transcripts

Good day everyone! Welcome to our lesson  1 in international business and trade.

At the end of this lesson, I hope that you  should be able to:

understand how the concept of international business evolved.

What are the things that happened in the world

that led us to engage in an international business.

And then, I really hope that you should  be able to discuss what are the natures of international business.

We should be able to describe the influences that can affect an international business,

and also, the goals that we should have or some companies have

that's why they are engaging in an  international business.

Lastly, we should be able to identify and strategize on how to solve problems relating to international business

especially, that we are in a pandemic situation not just in our country

but in the whole world so it means, even though there are tons of domestic companies that are affected by the pandemic,

all the more that the international businesses are greatly affected.

So, given that we are in a pandemic situation in our country,

how could you strategize with some

of the arising international business problems?

So, let us first define what is an international  business. According to sailor.org,

international business relates to any situation where the production of  

or distribution of goods or services crosses country borders.

We can easily consider that a business is an international business if their products -- their goods or their services  

will cross their domestic country, for example,

for example: the Jollibee Foods Corporation (JFC), before, they just started here in the Philippines,

meaning, they started as domestic company, but when they expanded their branch to other countries,

we can now consider Jollibee as an international business.

Another example, if you started your company in your domestic country,

then, later on, you have decided to expand to another country

or you just render your services to another country,

we can also call it as an international business.

The question is, where and when did it all started?

It all started with the globalization.

I assume we all have heard about globalization since then,

it is the shift towards a more interdependent and integrated global economy.

Because of globalization, it created greater opportunities

for the businesses to venture in an international level.

Another definition of international business from Sinha, P.K.

he defined international business in his book published on 2012,

international business consists of all commercial transactions  

private and governmental between two or more countries.

These exchanges or transactions goes beyond the exchange of money

for physical goods

it also includes transfer of other resources such as people

For example, at present, we have lots of BPO companies

so, there's an exchange of human resources.

Because there are lots of people here in the Philippines,

they can now continue in their business

using the people in our country.

Another example is the intellectual property -- patents, copyrights, data

and it also includes that contractual assets or liabilities.

When you engage in an international business,

it will depend on what you agreed upon

with the government in that specific country

but sometimes or most of the time they will give you the right

the right to use some foreign asset, for example,

nowadays, mining companies are getting controversial in our country

because we all know how rich our country in natural resources

like minerals, gold, etc.

when the mining companies are venturing in our country

and we allowed them, or the government gave them a go signal,

they can now use our asset even if they are foreigners  

they can now use our asset or our resources,

that's one of the perks or advantage 

but it could also be a disadvantage at the same time

when a company venture in an international business.

Aside from the financial gains there are also non-financial gains  

like corporate social responsibility or political favor

that can affect the business' future.

Now, the question is, why do we have to study international business?

According to Mittal, 2012, it's important or it's relevant to study international business because

Whether we like it or not, most of the companies at present

are engaging in an international business. 

One relevant example is the pandemic situation at present

the pandemic happen not just in our country,

so it happened in the global level, in the whole world,

when something like this happened,

international businesses are affected.

Whether large or small businesses,

since most of the time we sell outputs whether domestically or internationally,

or we get our raw materials and supplies from other countries,

we will be greatly affected by the events

in the global level, so that is why we need to study

we need to be keen in learning about the international business.