Over this trip we have learned various way in which international business differs from domestic business. The most important difference is the size of the market they are able to reach. Domestic business are only able to reach markets directly around them, there is not much room for growth unless the population grows. However, international businesses can access many more markets from all over the world and the possibilities for expansion are more attainable.
Another key difference we noticed was on the rules and regulations of how these businesses operate. Domestic business only have to follow the domestic rules and do not need to worry about jurisdiction of disputes or unfamiliar standards. International business on the other hand has a much more complex procedure when it comes to creating contracts and penetrating into new markets. International businesses must follow regulations under the United Nations & possibly other agreements such as the Canadian European trade agreement or CETA.
We believe it is important to care about international business because as business students it could help us in our near future if we decide to open up our own businesses. Understanding how international businesses work and the laws that regulate them will help us make educated decisions on how to properly operate our business. Even if we decide not to make our own business after graduation while learning about international business we learned how to communicate with people from different parts of the world. As the world is becoming more integrated, learning how to converse with those from foreign places can help you go far in your personal life & the business world. In our future there is a high possibility that we could be working for a company that is not based out of Canada, after learning how different parts of the world work & operate we will be better prepared to handle this different environment.
Why do you believe international business is important?
Below is a picture from Ottakringer brewery, they export beers to various countries all over the world.
-Erika & Chris 
Thank you, Erika and Chris, for your blog post about the importance of international business. We also noticed that the size of the market had the biggest impact on the business. With local business comes obvious drawbacks, but with globalization, comes a whole new world of possibilities for businesses. We like your point about how the rules and regulations in certain jurisdictions can affect businesses doing international transactions. It is always important to keep in mind what rules and regulations exist in the country where you are doing the business as they can drastically affect what you do. Agreements such as CETA or NAFTA make these transactions much smoother, as you mentioned. In the grand scene of things, international business is important because it allows undeveloped and developing countries to have the opportunity to create a better life for their people. In the example of the Czech Republic, who in years prior were considered to be a developing country with low buying power, high unemployment and low quality of life, this country is now thriving in each of these aspects due to international business. The tourist industry along with many other high grossing businesses such as SKODA and Unilever, who have a large stake in the country, can be almost wholly credited to the effects of international business. This greatly shows the vast importance of international business as the possibility of prosperity in historically underdeveloped countries, such as the Czech Republic, would be nearly impossible to attain without it. Thanks again Erika and Chris for your post!
ReplyDelete- Trevor and Katelyn