1. International Business is basically covers all commercial transactions (private and governmental, sales, investment, logistics and transportation) and it usually takes place in more than one region, countries and nations that go past political limits. A private company may take part in such transaction for profit or even government undertake them for profit and political reasons. It refers to all activities which involve a cross border transaction of goods, services and resources between two or more nations. There’s also transaction of economic resources and it includes capital, skills, people, etc. for international production of physical goods and even services such as finance, banking, insurance, construction, etc.
Examples of companies that operate internationally are Royal ...view middle of the document...
It was founded on January 25th, 1964 as Blue Ribbon Sports by Bill Powerman and Phil Knight and officially became Nike, Inc. on May 30th, 1971 and interestingly the company take its name “Nike” from the Greek Goddess of Victory. Nike’s aims/objectives are to develop products that help athletes of every level of ability reach their potential, to create business opportunities that set. Nike’s main competitor is the likes of Adidas, Puma, Rebook, etc.
3. The benefits of international trade are:
• It allows you to increase the amount of potential clients and suppliers.
• You can also diversify the risk as relying on one market and putting all it’s resources into one currency may prove to be risky than it may seem at first. For example, look at the all the global disasters such as financial meltdown, earthquake and unrest in the Middle East and they’ve all had some impact on the market your home market may disappear but saved by the revenue generated overseas.
• As well as seeing increased sales, you may well enjoy better margins. Sterling which is currently weak may give you a head start when exporting. Pricing pressure could be less and it could also reduce seasonal market fluctuations.
• The ability to stand out amongst competitors is a crucial factor in business. When there are fewer competitors, this task is made easier. Your business, which may be viewed as comparable to others in the UK, may, when placed in a larger and more diverse environment, turn out to be a unique product or service not to be missed. By making the product or service available to worldwide buyers, you instantly create another life line for the business by being in less competition and increasing the possibility of standing out. This will in turn boost sales potential and allow your business to flourish.