Video Transcript: International Business

Hello, we're going to be discussing international business. So international  business is a word used to cooperatively, cooperatively explain all profitable  deals, confidential and governmental trades, assets, logistics and transport that  take place among two or more regions, countries and nations outside their  political view. International Business conducts business transactions all over the  world. So we've really seen a ramp up of global and international business over  the last 30 years, really, and now it's being even more competitive, as you see  BRICS nations, Brazil, Russia, India, China, South Africa, kind of forming a  Union together, kind of like NAFTA and the North America Free Trade  Agreement, you're starting to see these nations come together to form economic trading blocks such as the European Union back in the 1990s right? So now  we're starting to see other emerging markets come together and form these  cooperative International Business PACs treaties, right? So a business, let's  define what a business is, right, a business, also known as an enterprise or firm, is an organization involved in the trade of Good Services or both to consumers.  Firms may be for profit or not for profit. So overall, this is what a business does.  They supply goods and services, right? They supply a demand on their goods  and services to consumers. So International Business comprises of all  commercial transactions, private governmental sales, investments, logistics,  transportation that take place between two or more regions, countries and  nations, right? So international business that takes place anything that's traded  internationally across domestic borders, between two or more nations or  regions, is known as international business. We see this every day, all over the  globe, right? Domestic trade has now expanded internationally, and now through the emergence of technology, the internet, we have more capability than ever to  take advantage of a growing global landscape, international business, business  examples, so foreign retail store in another country, right? Let's say we've got  Macy's in the United States, then there's a Macy's in the UK. That's an  international business, right? They've diversified their domestic outlook, took an  international approach, put one of their bricks and mortar retail stores in London, and now they're able to operate it and make profit, not just in euros, but in  dollars, operating a manufacturing plant overseas, right? So Alcoa, for example,  they develop aluminum, right? They mine aluminum in Africa, right? So they go  and get those resources. They operate the plant overseas, and they do then,  after they develop their products, put them in the European market, Asian  market, Middle Eastern Market, exporting products to other countries, Ford,  Chevy, any kind of American made vehicle. We're going to try and sell them  overseas, right? Import products from foreign businesses. The United States is  the number one product importer in the world, right? So we are importing  products from all over the world, right? Because we have a demand. Our  consumers want these products. So then we have to go out internationally, bring the supply home, and then they compete with domestic products. Invest in 

businesses. In another country, there are foreign exchanges everywhere, as far  as stocks and equities are concerned, right? Shanghai, right? We've got the UK  exchange, we've got the FTSE, we've got the German exchange, right? We can  go invest in businesses in another country. We can trade on other countries  

stock exchanges at any time, as long as they're open, and we can invest in them via stocks. International Business options. An international business has many  options for doing business, including exporting goods and services. So we can,  we can do more than one thing, right? We can give a license to produce goods  in a host country, or start a joint venture with another company, opening a  branch for producing and distributing goods in a host country, right? So there's  multiple ways to do business internationally, globally, than just exporting goods  and services, right? So we can give a license for hostess to go make products in Germany. Germany can provide the license for that, right? Because it might be  cheaper for them to produce products in Germany instead of them to produce  pricing. United States and ship them over to Germany, right? So they might  make a deal and give them a license to go into Germany manufactured products and selling the German market, because going to save them costs, and then the Germans, or whoever it is, will get cheaper prices starting a joint venture with  the company, right? So you can have a Chinese firm merge with American firm  and go in on the deal together in Canada. And you know now they're splitting the cost because they have a joint venture, and both of them have split the cost of  equity, opening a branch for producing and distributing goods in a host country.  So same thing, kind of like the example I gave about the license, right? You can  go into another country and operate features of international business, the  nature and characteristics of international business are typically on a large scale operations. Why would you diversify outside of your domestic country into an  international if you're not developing on a large scale, right? It almost be not  worth the entry into that market, right? Unless you have the capital or the  investment power to go in, make the purchase or the investment wherever it is  internationally, right? So unless scales are, unless your operations are in large  scale, you may not, or probably do not, have the capital to break into  international markets. Integration of economies, right? You see how Europe has  integrated their economy into one common market, right? So that happened  back in the 90s, and it's still going. So they've integrated. They they they did  away with their international their national currency, and all of them have  adopted the EU or the euro. So it's dominated by developed nations, right?  Typically, developed nations are the ones are the companies inside developed  nations are the ones that have the capital to go invest outside of their domestic  borders. Benefits of participating nations. So, so benefits to participating nations. So the benefits of operating in international markets is one you've diversified  your market space and who your customer base is, right? So you've added  more customers, right now you've got an opportunity to increase profits, right? 

And you may also find another niche market that you can provide products to  that will satisfy demand that's in that international market. They may not be in  your domestic market. Special role of science and technology. Science and  technology is evolving constantly, right? Which makes operations more efficient  more effective. So the more efficient and effective that an operation is, the more  cost efficient it is. Therefore it's going to give you more capital to reinvest in the  international markets, because science and technology has innovated, allowed  you to innovate enough to be able to drive your costs down, therefore giving you greater profitability and more of an opportunity to reinvest research and develop. Global Business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies and  organizations. So obviously the the objective for most organizations is growth,  revenue growth, profit margin growth, right? So, how do you grow revenues?  How do you grow profitability year over year? You've got to find more customers  to buy your product than they did last year, or raise prices and meet the same  amount of demand, right? You don't ever want to decrease in growth, right?  Where something is really wrong if we're decreasing in growth, right, year over  year, in a steward like manner, right? Let's not, let's not expose everything and  destroy the resources for profitability, but let's make sure it's done in a  sophisticated manner.