International Business: Evolution and Imperatives

The past two decades witnessed sweeping economic transformation that has profoundly affected industries and people across many nations. Liberalization in countries like Bangladesh, along with others in Asia, Eastern Europe, CIS, and Latin America, accelerated the pace of progress towards a borderless world. In the process, new markets are emerging across the world.

There's little doubt that the degree of interdependence and integration among nations increased remarkably during this time. World trade grew quite exceptionally relative to national incomes. Home markets are now getting saturated and more competitive, and even smaller companies have no option but to go global or get out of business. If you want proof of the fact that we live in a global village, just look at the products we use daily in our personal life and also in the work place.

Forces that drive globalization

World economic trends define market needs and wants, creating perceptible high income elasticity for differentiated products and services. While technology and innovation have revolutionized businesses, the progress of global transportation and communication has altered expectations and access of marketers and customers. Businesses are desperately trying innovative routes to lower manufacturing, processing, product development, and sourcing costs without sacrificing quality. With globalization high on the agenda, companies are leveraging unique resources such as their brand name, experience transfer, and scale of economies.

What constitutes international business?

International business refers to a wide range of business activities across transnational boundaries. Strategies for going international may involve one or all of these:

Sourcing inputs internationally, from wherever they are the cheapest
Manufacturing anywhere in the world, at cost-effective locations
Marketing products and services globally
Recognizing and relying on international talent to manage business

As companies vie for a place in the emerging global markets, profits and cost savings from international business add to the company's kitty, serving as a buffer when the chips are down in their own home markets.

Fun and challenges of international business

It adds a whole new dimension - cross-cultural exchange for the company and its people. Many organizations follow what is called "global localization", which means think global, yet act local. Again who knows, with new concepts and innovations, a firm could also be a cultural change agent!

Dear visitor, are you willing to cross the borders, stake your resources and face challenges? If yes, whether you are a MNC or a smaller organization, there are good chances that business opportunities in Bangladesh and other emerging markets of the new millennium, will make a difference to your company!