Challenges and Opportunities in International Business

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Challenges and Opportunities in International Business

The internet and other related technologies have changed international business by lowering some of the barriers associated with international business. For instance, smaller businesses are now able to conduct b2b business because they do not need as many resources as they did before. Technology has lowered operational costs associated with international business. Previously, people had to worry about many logistics, including the payment methods, and the delivery of goods. However, this has changed because technology has enabled people to make secure payments online. Business people are now in a better position to get information concerning different logistics easily, and they do not have to worry about a lot of paperwork. Lack of network connections hinders successful international business. However, the internet has given people the chance to network with others of the same interests, thereby giving them a chance to locate more opportunities. E commerce has lowered the distribution costs. Geographical boundaries hinder effective international business. E commerce has redefined the distribution system. Moreover, businesses do not have to worry about the time differences in different places since most business is on a 34-hour basis (Rainer & Cegielski, 2010).

Markets have become global because of technology. They are now serving people in different parts of the world. Technology has increased competition between different markets. This is because it has increased the consumers’ options in determining the types of markets to buy. Markets have become more varied in terms of the products and services produced, as they seek to attract more customers. They have become more efficient, as they aim to retain the customers. Technology has made markets more accessible to people. Some goods were not available to some markets. Markets in developing countries were not able to get some goods easily but technology has changed that. The internet has provided businesses with a chance to get more information that is relevant to their business and essential for conducting research. The service industry has improved because of competition among different businesses. The idea of outsourcing has changed the way that people choose to do businesses. Technology has enhanced the ability of firms in the different service markets to develop intangible assets (Fletcher et al., 2004).

Many companies have formed alliances with credit card companies and other service providers to ensure that their transactions are secure. This has enhanced the payment delivery and it has made it possible for many companies to avoid losses associated with paying online. Some domestic companies have formed strategic alliances with companies from other regions. Apple and Samsung are competitors, but they have formed an alliance, which has enabled Samsung to provide chips and microprocessors for Apple. A firm’s dependence on technology determines whether it requires technology to expand. Some firms cannot operate without high invest in technology. Such firms will not expand in regions where the people have not invested in technology. Other firms require minimal use of technology for their expansion. Such firms may require heavy investment in human resources and local connections. Therefore, technology will not hinder such firms from expanding. Companies can work around the different technologies available, if they learn to localize their business operations. Localizing does not only mean using the country’s language in the course of business operations. It also means looking for the different resources that are available locally, and learning how to work with them. For instance, a company may use laptops and other computer technologies in the domestic plants, but may be compelled to use mobile phones and other related technologies in a different area. Such means of localization makes it possible for businesses to adapt to the technological levels of their countries of operation.

References

Fletcher, R., Bell, J., MacNaughton, R., & McNaughton, B. R. (2004). International e-business marketing. United Kingdom: Cengage Learning EMEA

Rainer, K. R., & Cegielski, G. C. (2010). Introduction to information systems: Enabling and transforming business. Hoboken, NJ: John Wiley & Sons

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