WHAT IS GLOBAL BUSINESS?

Global business consists of transactions that are devised and carried out across national borders
to satisfy the objectives of individuals, companies, and organizations. These transactions take on
various forms, which are often  interrelated. Primary types of international business are import export trade and foreign direct investment (FDI). The latter is carried out in varied forms,
including wholly owned subsidiaries and joint ventures. Additional types of international
business are licensing, franchising, and management contracts.
  
As the definition indicates, and  as for any kind of domestic business, “satisfaction” remains a
key tenet of global business. Beyond this, because transaction environmental factors, to different
constraints, and to quite frequent conflicts resulting from different laws, cultures, and societies.
The basic principles of business still apply, but their application, complexity, and intensity vary
substantially. To operate outside national borders, firms must be ready to incorporate
international considerations into their thinking and planning, making decisions related to
questions such as these:

  ● How will our idea, good, or service fit into the international market?
  ● Should we enter the market through trade or through investment?
  ● Should I obtain my supplies domestically or from abroad?
  ● What product adjustments are necessary to be responsive to local conditions?
  ● What threats from global competition should be expected and how can these threats be                
counteracted?

When management integrates these issues into each decision, international markets can provide
growth, profit, and needs satisfaction not available to those that limit their activities to the
domestic marketplace. The aim of this book is  to prepare you, as a student of international
business, to participate in this often complex decision process.
Czinkota, Michael R., Ilkka A. Ronkainen and Michael H. Moffett. Fundamentals of
International Business. Mason: South-Western, 2004.