What Is International Business?

Video Transcript

"Hi, my name is Mark, and I'm just going to briefly cover international business as a...as a subject with you. International business is a collective term used to describe the operation objectives of organizations that have business interests in other countries. In other words, multinationals. Some of these companies, you might be aware...you might know -- Disney, Shell, Sony, and McDonald's, Tesco, Ford, just to name a few. These are organizations that have business interest on a global basis and their key objective is to standardize what they're offering, so that wherever you go in the world, whatever you buy, whatever product and service that you buy of theirs, it is of a standard level -- of a generally acceptable level on a worldwide basis. It's a...it's a measure of quality. Now, of course, these organizations have the money, but they don't necessarily have the know-how in these local markets. And they have to partner up with, sometimes, other local organizations of a similar size in order to operate in these markets. Sometimes there's barriers to entry, primarily because they are taking on a local operator in that field. So it makes sense for them to work in a collective manner. Now, there are many factors that affect an organization's entry into a new market -- politically, economically, socially, and, of course, technologically. All of these issues can affect how a business operates and it must do an incredible amount of research before, of course, it goes ahead and spends considerable sums of money investing overseas."