Through international business method the firms are able to conduct their business activities and transactions all over the world. The transactions can include the exchange of goods, services, capital etc. to any part of the world through their business dealings. International business is mainly concerned with export and import of the goods and services.
International marketing or global business can be also used in reference to international business.
- Exporting, in this method one country can involve in international business with other country by sending the goods and services from the domestic country to the foreign country
- Importing, it is just opposite of importing where the domestic country receives the goods and services from the foreign country, thus involving in international business practices.
- Licencing, in this method the firm in the home country can give the licence to the firm situated in foreign country to produce goods of the domestic firm.
- Joint venture, when two firms which are part of different countries come together to start a new venture.
- Wholly owned subsidiary, when the company of a domestic country opens the branch in foreign country and distribute the goods to the firms of the foreign country.
- When the firm of the home country supply only the managerial services to the company in the host country.
Strategic management is the process where the company goes in for strategic decision making which aims in providing a direction to the organization. The main objective of strategic management is to achieve competitive advantage and gain long term profits for the organization.
There are four main strategy that are part of strategic management which are :
- Single country strategy, in this method the firm only operates in its home country without involving in any business activities with the foreign country
- Export strategy, in this approach the firm in the home country only sends the goods and services to the firm situated in the host country.
- International strategy, in this the firm in the home country starts it branches in the host countries and each subsidiary is under the control of the parent firm, which means that the subsidiaries are not capable of taking their own decisions they have to follow the decisions of the parent firm
- Global strategy, in this the firm opens its subsidiaries in the foreign country and each subsidiary is given the freedom to take their own decisions and make changes in the product according to their local conditions.