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December 20, 2017
Domestic managerA domestic manager’s work concerns the country in which he/she works in. Depending on the nature of the business, a domestic manager’s work will depend on the culture of the state. There won’t be a language barrier as your business will operate in the state’s main language(s). Though there is always a need for market research in all organisations, a domestic manager may find this easier to do as it’s likely you’re familiar with the language of your country and its general trends. Compared to the work of an international manager, it could be argued that the role of a domestic manager involves less complications. Usually, a business owner’s first market is their own country, therefore, there are less associated risks. However, if an organisation’s competitors have gone global, a national firm may wish to do the same. International managerAn international manager’s focus is on business targets within a particular country or an entire region. This means you could be dealing with a new culture, multiple languages, and new rules and regulations. The restrictions on multi-nationals are greater, and so the work of an international manager can be more varied and complex than that of a national/domestic manager. In fact, a corporation may have to completely re-think the way it manages in order to suit different working models around the world. Your business strategy must comply with what’s considered legal in your new country of operation. Your marketing strategy will be very different to your home strategy as you’re targeting a whole new population. An international manager will have to spend more time on market research in order to understand the different trends in your new international market and to learn how well you product/service will do. You’ll also have to get used to pricing your products/services in different currencies. In an international market, it pays to keep up with what your competitors in the same region are doing. In a nutshell, if you want your business to do well, tailor your goals to the rules of your new market. We hope you enjoyed reading this blog. For an insight into relevant qualifications in this field, take a look at Toronto School of Management’s Diploma in Business Management. 1.Because of different cultural, political,economic, and legal systems, and so on,countries are different. 2. The issues at the international business level are more complex than those at the domestic level. 3. International business transactions involve converting money into different currencies. 4. International business must find ways to work within the limitations and constraints imposed by the various governments. International economic environment
Understanding of the economic environment is essential for business managers not only at the strategic or planning level, but also at the level of current operations of the firms. Strategic decisions such as expansion and diversification, competitive postures in the form of R& D policy, packaging, advertising and other such policies are affected by the evolving market and economic scenario. Similarly, production, investment, pricing and hiring decisions are dependent on the market structure which itself gets influenced by the structure of the economy and the economic environment. Objectives:
Elements of International Economic Environment Countries (nations) International Industries International Markets International Monetary System International Trade System Regional Unions International Organizations
country economic analysis
Country macroeconomic Indicators - Gross Domestic Product - GDP per capita - Growth Rates - Inflation - Unemployment - Interest Rates - Exchange Rates - Industrial Production - Construction - Hourly Earnings - Passenger Cars - Retail Sales - Share Prices - Money - Foreign Trade - Balance Of Payments - Foreign Debt - Official reserves Objectives:
- to know conditions of country demand and supply - banking and investment climate
Exchange rates can be forecasted through analyzing economic (balance of payments, interest rates, inflation…), political (Philosophies of political parties and leaders, elections…) and expectative (Forward exchange market prices) conditions in the country.
Objective: to determine opportunities and threats, that exist for firms within a competitive environment. In the result to make conclusion: about critical success factors and prognose about the future of industry Stages 1)Description 2)Segments 3)Suppliers
4)Buyers
5) Substitute Products
6) Rivalry
 alliance is an agreement between two or more parties, made in order to advance common goals and to secure common interests. Centralized: bottom-up approach; decentralized: top-down. (organizational structure) Foreign direct investment (FDI) is a measure of foreign ownership of productive assets, such as factories, mines and land. Increasing foreign investment can be used as one measure of growing economic globalization. Joint venture (JV) is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. License is "an authorization (by the licensor) to use the licensed material (by the licensee)." Multi-domestic Strategy
Global Strategy
Advantages: cost, coordinated activities, faster product development Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]
How does managing an international business differ from managing domestic business?Domestic business involves those economic transactions that take place within the geographical boundaries of a country. International business involves those economic transactions that take place outside the geographical boundaries of a country. Both the buyer and seller belong to the same country in domestic business.
What is the difference between domestic and international?A domestic flight is one that stays within the same country while an international flight is one that arrives in a different country.
What are the differences between domestic trade and international trade?Area of operation: Domestic trade operates within the home country, while international trade activities are spread across the globe. Different currencies: International businesses deal with multiple currencies and the fluctuation of exchange rate can affect the profitability of your business.
What makes an international business more difficult to manage than that of a domestic business?Carrying out the activities of international business and its management is far more difficult than conducting a domestic business. Due to changes in political, economic, socio-cultural environment across the nations, most business entities find it difficult to expand their business globally.
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How does managing an international business differ from managing a domestic business?
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