"International business strategy refers to plans that guide commercial transactions taking place between entities in different countries."
The development of business plans and tactics for achieving goals in the global marketplace, which involves analyzing market trends, competitive forces, and cultural differences.
Globalization: The process of increased interconnectivity and integration of economic, political, and cultural systems globally.
International Trade: Exchange of goods and services between countries or regions.
Cultural differences: Differences in language, customs, values, beliefs, and norms that affect international business.
Political and Legal Environment: The set of laws, regulations, and political institutions that regulate international trade and investment.
Market Entry Strategies: Strategies used by firms to enter new markets like exporting, licensing, franchising, joint ventures or wholly owned subsidiaries.
International Marketing: Developing, promoting and selling of goods and services across national borders.
Risk Management: Managing risks associated with international business like foreign exchange, country risk, operational risk, legal risk, cultural risk.
Regional Integration: The process of countries integrating into regional trading blocs like NAFTA, EU, ASEAN.
Strategic Alliances: Collaborations between firms from different countries to pursue mutually beneficial objectives.
Global Supply Chain Management: The management of supply chain activities from the sourcing of raw materials to the delivery of finished products.
Corporate Social Responsibility: The responsibility of companies towards society and the environment in the countries they operate in.
Intellectual Property Rights: Rights of the creators of ideas or inventions over their works or inventions.
Technology Transfer: The transfer of technology from one country to another for commercial or noncommercial use.
Economic Development: The process of improving living standards, reducing poverty, and increasing economic opportunities in developing countries.
Innovation and Entrepreneurship: Identifying and developing new ideas and opportunities for international business.
Global Standardization Strategy: In this strategy, companies offer the same products and services throughout the world without making any changes to meet the specific needs of different countries or regions.
Localization Strategy: A localization strategy is the opposite of the global standardization strategy. This strategy involves adapting products or services to fit various cultural and language differences across different countries and regions.
Transnational Strategy: A transnational strategy seeks to balance the need for global integration with the need for local responsiveness. Companies that use this strategy integrate standardized processes and technology worldwide while still allowing for some localization in different regions.
Export Strategy: Companies that mainly use this strategy sell goods and services produced in one country to customers in other countries. This strategy typically involves limited investment in foreign-based operations.
Franchising Strategy: Franchising strategy involves companies that grant licenses to other firms to use their products, services, and operating systems to establish a franchise in another country.
Joint Venture Strategy: Companies using this strategy enter partnerships with foreign companies to form a new entity. Profits and management control are shared among the partners, with the goal of achieving competitive advantage in foreign markets.
Direct Investment Strategy: Companies that use this strategy invest in foreign operations by building facilities, purchasing businesses or assets in other countries, or forming wholly-owned subsidiaries. The goal of this strategy is to establish long-term operations and strengthen their competitive position in foreign markets.
Turnkey Projects Strategy: In a turnkey project strategy, a company designs, builds, and transfers complete plants or facilities to foreign businesses. Companies use this strategy when they have a competitive advantage in a specific area or can provide a unique product or service.
"Typically, the phrase 'international business strategy' refers to the plans and actions of companies (public or private) rather than of governments."
"The goal of such a strategy involves increased profit."
"Most companies of any appreciable size deal with at least one international partner at some point in their supply chain."
"In most well-established commercial markets, competition operates internationally."
"An understanding of cultural and linguistic barriers is essential to commercial success."
"An understanding of political and legal systems, and the many complexities of international trade is essential to commercial success."
"New markets open up and new sources of goods become available, making it increasingly important even for long-established firms to have a viable international business strategy."
"This is often facilitated with the use of international management consulting firms such as Oliver Wyman, Roland Berger, Amritt, or the Everest Group."
"Entities in different countries" are involved in international business transactions.
"The plans and actions of companies (public or private) [refer to international business strategy] rather than of governments."
"In most well-established commercial markets, competition operates internationally."
"Methods of transacting commercial operations vary appreciably in different countries."
"An understanding of cultural and linguistic barriers is essential to commercial success."
"An understanding of political and legal systems [...] is essential to commercial success."
"As historically developing countries become increasingly prominent, new markets open up and new sources of goods become available."
"The goal of [international business strategy] involves increased profit."
"Most companies of any appreciable size deal with at least one international partner."
"This [developing an international business strategy] is often facilitated with the use of international management consulting firms such as Oliver Wyman, Roland Berger, Amritt, or the Everest Group."
"An understanding of cultural and linguistic barriers, political and legal systems, and the many complexities of international trade is essential to commercial success."