To understand international business is to understand the global business environment, global competition, free trade, and the imperative quality. Many of the international business experts argue that exporting is a logical process with a natural structure, which can be viewed primarily as a method of understanding the target country’s environment, using the appropriate marketing mix, developing a marketing plan based upon the use of the mix, implementing a plan through a strategy and finally, using a control method to ensure the strategy is adhered to. This exporting process is reviewed and evaluated regularly and modifications are made to the use of the mix, to take account of market changes impacting upon competitiveness.
Discussing foreign direct investment (FDI) of transnational corporations, Robert Pearce defines the global business environment as ‘the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making in resource use and capabilities.
In an unfamiliar foreign market with confusing regulations, uncertainty, and risk, the DOC can help U.S. businesses navigate the overseas sales process and avoid hazards such as payment defaults and misappropriation of trademark and intellectual property.
Although the intent of such payments is laudable, the reality is that the system generally results in greater overall expense – sometimes to the point that the company’s original intent in establishing an overseas operation in the first place is undermined.
It is basically a totally independent and evolving discipline, where BAs of said companies tend to make a thorough, and from the perspective of finance, a well-projected analysis of a certain organization’s planning, business status, business model, process, profit and loss, assets, and liabilities.