1.1 What is International Business?
International business is described as any activity that takes place across national
boundaries. This concept encompasses not just international trading and overseas
production, but also the growing service sector in fields such as shipping, tourism,
advertising, architecture, retailing, wholesaling, and mass communications.
1.2 Which are the four strategies (Bartlett and Ghoshal) in International Business?
The four strategies (Bartlett and Ghoshal) in International Business are Multidomestic,
Global, Transnational and International strategies. More specifically, Multidomestic
strategy refers to Low Integration and High Responsiveness, whereas Global-strategy-
applied companies are the opposite of Multidomestic companies, which means High
Integration and Low Responsiveness. Transnational strategy means High Integration and
High Responsiveness, and International strategy means Low Integration and Low
1.3 What differentiates International Business from domestic business?
There are several main differences between International Business and domestic
business. Firstly, there are different Cultures in different countries. For the company to go
global, it is important to having a detailed research on the Culture of those countries.
Secondly, the Level of Competition is also different. It is clear that the Level of
Competition faced in international markets will more likely be more competitive and
diverse than in domestic markets. Thirdly, to enter a new market, a company must have
the needed Market Intelligence by understanding how the market works, who your direct
competition is, and the best market entry strategy. Next will be
Politics/Government/Legal Systems and International Law. Since no countries have the
same political systems, companies should understand the policies relating to foreign firms
and products of the country(s) that you intend to enter, which can reduce the risk of these
laws and regulations effect on the firm. With International Law, it can have some
honored agreements but still have some limitations. The following will be Technology.
Every country has different degree of Technology so firms should take that into accounts
to make sure they enter a market that can match their products and services' technology.
Logistics, similar to Technology, can be different between countries. To avoid its
negative impacts, it is critical to conduct analysis and learn how products are transported
inside the region. Finally, aware of the different types of Media available and the types of
Media the target customer uses to know about the goods and services they choose to
purchase is important when having an International Business.
1.4 What are the drivers for Globalisation?