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Lecture 02: IB Importance, Nature and Scope
The importance of international business is that it helps to get
governmental support and benefits
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India is a key battleground for
e-commerce expansion, so companies are thinking of expanding their
businesses and diversifying their activities
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International business helps the businesses spread the risk and
make a profit even in case of a loss in one country
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The international business has to be more dynamic in order to handle
complexity in a larger way
...
The sensitive
nature of international business any changes in the economic policy, the
technology, or the political environment can affect the success of an
international business
...
The international
marketing is the application of marketing principles to satisfy the varied
needs and wants of different people residing across the national borders
...
The
typical problem was the habit of the people
...
But corn flakes is advised to be
taken in a cold milk
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Another important scope is the global human
resource
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There have been cases where companies have
failed just because of a poor human resource policy
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The different modes of entry into the market are exporting, licensing,
franchising, strategic alliance, joint venture, and wholly owned subsidiary
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Greater information requirements are necessary to enter the market
successfully
...
Because I am not doing anything, I am just giving it to
somebody else and he is doing it for me
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Counter trade means where you are exchanging against goods and
services paid with other goods or services
...
Piggybacking is an
old and early form of strategic partnering; two different firms tie up or
have a strategic partnership because to get advantage
...
There is a fear
that you give a license to somebody and tomorrow that company may
take your entire know-how
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And inconsistent product quality may
affect the brand image negatively
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Many large
companies for Nike, Adidas, Puma Reebok are getting into contract
manufacturing
...
And then it helps them to procure the material from those places
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When discussing international business, it's important to keep in mind a
variety of factors
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Thank you for joining us today