Study of International Business
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The study of international business does relevance to individual no matter they are going to work in a large multinational enterprise or small firms. An international business can be defined as requires the organization to change its processes and structure to accommodate a different way of operating. Because, nowadays domestic companies does not compete locally but competing globally against products and services that come from abroad. Furthermore, the international business now, comprises a large and growing portion of the world’s total business and affecting the world with its activities. A small firm usually operating domestically might still involved in exporting and importing transaction with abroad. By acquiring knowledge in international business, the firm able to understand rules and regulation which may enable the firm’s product to enjoy certain benefit such as tax free when importing product from or exporting product to another country. Besides, a small firm which exporting its product to abroad has to ensure it developed a marketing plan based upon the target nation.
The marketing plan shall review and change depending on the special requirement of each nation and take account of market changes impacting upon competitiveness about its product. Moreover, every product has to pass through different stages of product life cycle. It could happen as it is the last stages of life cycle in domestic market, but may get proper response at other markets due to different stage of life cycle. As such, individual with international business knowledge will help the company to gaining knowledge on international market and help in managing product life cycle. In addition, by exploring new market help in expansion of the company which they might have reached a saturation point in domestic market. With this creating new business opportunities to the company who may already operate in a saturate domestic market for a long time. Even though, by marching into another new market has its risk and additional expenses there, but it is good for a small firm to step into another market to gain experience and further enhance the firm ability.
As such, it is important to have individual who having international business knowledge to implement all this activities. Secondly, individual having international business knowledge can help the company to go further in the event of economic downturn in domestic market. Small firm may expanding its original market to abroad, because when one country or region is having economic downturn, other countries or region are often experiencing economic growth. Besides, by expanding to other countries with the help from individual having international business knowledge, small firm may grant greater access to inputs such as people and material. Furthermore, it is now normal for firm to hire foreigner to work across the country border. For example, a small firm may access to raw material supply with lower price through international sourcing and get the purchase done with local people in another country.
Alternatively, for individual who having international knowledge may help the firm to collect more comprehensive and up-to-date market information. Even though that information may purchase from analysis agency, but it is important to having someone who understands the international trend and consumer behavior to integrate it according to firm’s product. With this, a small firm may target their consumer more precisely by presenting the product that customer want. Though, it is mainly rely on the individual’s ability to comprehend the report, but overall it is a good way for small firm to step into another market with more comprehensive data support and thus minimize the risk of loss. In Malaysia, a small firm normally considered as partnership or family business. Most of their management staff is the owner of the business as well. Therefore, sometime they do not realize or they are too busy to realize the problem within the company such as account policy, labor right, brand management and all that involve.
As such, an individual who are going to work in such small firm may help the business owner to manage the firm by bringing international codes of management way. For example, it is a basic for a firm to strictly adherence to labor and human rights standard so that not affect the reputation of the firm. Moreover, it does affect to the brand reputation where customer may switch to another product due to poor labor record from the firm. Besides, a small firm may come up innovative product as well, but there might not proper way to protect its intellectual property right. As such, individual having international business knowledge shall remind the firm owner to protect their intellectual property right according to its product. It is crucial for firms who have the ambition to enter international business. They might loss the business in case the pattern was registered by others.
Although, all these activities might involve with additional cost and additional investment; but it is a good way for small firm to change its processes and structure to accommodate a different way of operating. By doing so, individual with international business knowledge in the small firm will be an added advantage throughout this changing. As a conclusion, the study of international business does have relevance for individuals who are going to work for small firms. They can help the small firm to grow further and become stronger by marching into the global market. Besides, by incorporating the concept of international business into the firm, enable the firm to become more systematic and compliance to international standard. Moreover, international business concept encourages the management to expect the unexpected. It is something different from traditional concept, whereas we should encourage more people to study international business no matter they are from small or large firm.