Here are the detailed notes on International Business in English, based on the video,
structured for exam preparation:
📝 International Business - Exam Preparation Notes
These notes are based on the video "International Business in Hindi - Introduction, Meaning,
Definitions, Scope, Nature, Importance."
1. Introduction and Meaning
Meaning: International business refers to all commercial activities carried out across
national boundaries, spanning two or more countries.
Involved Activities:
Movement of Goods and Services.
Transactions involving Capital, Technology, and Intellectual Property (IP) such as
Patents, Trademarks, and Copyrights.
Market: It involves a very large market, offering organizations the opportunity to satisfy
customer needs worldwide.
1. Definitions
According to Robock and Simmonds: International Business is defined as the field of
management training that deals with the special features of business activity that cross
national boundaries.
According to J. Cad and Kua: International Business is defined as transactions devised
and carried out across national borders to satisfy corporations and individuals.
1. Scope of International Business
| Sr. No. | Area | Description |
|---|---|---|
| 1 | Import and Export of Merchandise (Physical Goods) | The exchange of tangible
(physical) products between different countries. |
| 2 | Import and Export of Services (Intangible Goods) | The exchange of intangible items
such as travel, tourism, transportation, and communication. |
| 3 | Licensing and Franchising | Licensing: A contractual agreement where a firm
(Licensor) grants another firm (Licensee) the right to use things like trademarks, patents,
etc., typically in exchange for a fee called a Royalty. Franchising: Similar to licensing,
involving the distribution of a patent or system for a charge. |
| 4 | Foreign Investment | Investing money in foreign countries with the expectation of
profit. |
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2. Nature/Characteristics of International Business
| Sr. No. | Feature | Brief Description |
|---|---|---|
| 1 | Involvement in Commercial Activity | Includes commercial activities like purchase-
sale of goods, capital, services, and technology. |
| 2 | Surrounded by Political Risk | Risks associated with foreign exchange values,
foreign environment, and political decisions. |
| 3 | Different from Domestic Business | Differences exist in economies, value systems,
and industry practices across countries. |
| 4 | Large Scale Operation | Production and marketing are conducted on a very large
scale. |
| 5 | Integration of Economies | Various national economies are involved and
interconnected. |
| 6 | Dominated by Developed Countries and MNCs | Primarily controlled by
Multinational Corporations (MNCs) and developed nations like the US, Europe, and
Japan. |
| 7 | Keen Competition | Firms face intense competition, especially developing countries
competing with high-quality products from developed nations. |
| 8 | Specific Role of Science and Technology | Science and technology are given great
importance to aid large-scale production. |
| 9 | International Restrictions | Must deal with various regulations, tariff barriers, trade
blocks, and foreign exchange restrictions. |
| 10 | Sensitive Nature | Highly sensitive to sudden changes in economic policy,
technology, or the political environment. |
3. Importance of International Business
Earn Foreign Exchange.
Optimal Utilization of resources.
Achieve objectives and Spread business risk across different markets.
Increase organizational efficiency.
Expand the business and enhance competitive capacity.
Take advantage of cost benefits.
Provide employment opportunities.
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