International Business - Concept, importance, specialization and more

Share:




 The origin of the science of international business management

 The study of international operations began in the late 1960s and early 1970s in the United States of America. The main reason for the emergence of such a flag is the deterioration of the level of US exports to different countries in this period began from here to search for the reasons that led to the deterioration of these reasons:
1 - The lack of ability to deal with foreign markets has led to the interest in studying foreign languages ​​such as Spanish, German, French, Far East languages ​​.. The US Department of Education began to support the establishment of language study centers in order to understand the global markets and facilitate the process of dealing with them Thus increasing the export process.

2. The study of foreign cultures, such as customs and traditions, began to develop the role of the US Department of Education in supporting the establishment of centers of foreign cultural studies and the emergence of centers of the Middle East, centers of study of the Far East, a center for the study of socialist countries, European countries and Latin American countries. The purpose of these cultures is to strengthen the competitive position of US companies in world markets.

It is natural that the study of the foreign languages ​​and culture of the foreign world will be reflected in our ability to understand the nature of demand in foreign markets, which facilitates the process of dealing with them and success in reaching them.
The study of foreign languages ​​and cultures was therefore the beginning of a natural interest in the international dimensions of business administration but was not the beginning enough for the size and quality of the high changes that took place in the early seventies and therefore it was necessary to include courses in American business schools courses on international business management.

 Definition of International Business Management - The Concept of International Business Management

Is the economic transactions that are organized and implemented across the borders of different countries in order to achieve the objectives of persons and institutions responsible for such transactions. "These economic transactions can include the following areas:

First: International trade Whether it is international trade in goods or services.

Second: International Investment This is divided into two parts

Foreign direct investment (FDI) The foreign investor is administratively responsible for his foreign investments in the countries hosting these investments.
(B) Investment Portfolio Portfolio investments, such as portfolio investments, where the percentage of contribution is limited in projects established in foreign countries and the primary purpose is to achieve an appropriate financial return from the presence in these countries.

 Third: Technical Technology

This is the process of obtaining advanced technology from different companies around the world whether in the form of advanced machines or technical knowledge in the form of licensing licenses production or the like.

Fourth: Individuals

This means the movement of individuals across different borders in search of better employment and livelihood opportunities whether they have moved as individuals or as workers in different international companies.

What is the difference between business management and international business management?
or
Does international business management differ from local business management?
or
How does international business differ from local management (in national markets)?

For example, if an Egyptian company tried to work in the UAE, it would find that the working conditions are different despite the cultural and historical convergence between the two countries. For example, there are differences With respect to the following:

 - political system.
- Culture, customs and local traditions.
- Laws and rules governing the work.
- The tax system. - The level of technical progress.
- The banking system.
- Local marketing system.
- State currency.
- The nature of the economic system and its orientations in general.

For example, if the company is operating in Cairo, Alexandria, Port Said, Suez, Aswan and Assiut, there is no difference in the circumstances, but once the national borders are crossed, all these elements are considered to be different from one country to another. For success in international markets.

To return to our example of the sisterly UAE, we find the difference, even if we imagine that an Egyptian company such as Oriental Weavers, for example, have different operations in many countries such as China, Japan, the Netherlands, Germany, Belgium and the United States of America, as well as some Arab countries. Can you imagine the size of the variables required from the company


The nature of international business science as a field of study

 As a result of the multiplicity of external environmental variables and the need to work on their understanding to acquire the ability to deal with them successfully it was necessary for the student to recognize many of the principles and theories of the following sciences, for example, not limited to:

- Economy.
Geography.
Anthropology.
- History.
- Political Science.
Business Management Science.
- Law in different branches (commercial / civil / international).

This has made the interdisciplinary management of international operations known as an interdisciplinary field of study,

The historical development of international operations management

 As a result of the emergence of the science of the Department of International Operations in the United States, the points of interest and areas of focus in the study of international business as a result of the stage experienced by the US economy is divided into four distinct stages:

. Attention to international trade

This happened in the initial stages of the internationalization of the activities of US companies where the American companies focused on production within their factories in America and then trying to open the markets of different countries to export their products and therefore was interested in studying foreign trade and factors of success and increase their impact on the national economy.

. Attention to international operations

American companies have moved and opened factories outside their borders. It has become necessary to successfully manage the international operations of companies, so it was necessary to study how to provide elements of success in the external environments of these companies, whether in terms of production, financing or marketing.

. Attention to international functions Functions International

American companies found in different markets found that it might be better to try to study and understand the various functions of the company at the international level to raise the efficiency of performance and therefore appeared at the time of international marketing science, international finance and international production. International Marketing - International Production International Finance.

. Global coverage

  As a result of increased competition and technical progress at the global level it is necessary to view the world as a single unit in terms of marketing and production, so companies have to have an integrated view of the world around them and try to run their business through this global view.

The nature of courses in international operations management

There are many courses offered in business schools as a result of the nature of the resources available in these schools and the needs of the local market and the demand for these courses. In general, however, the adoption of a bachelor's degree or MBA in American universities and many universities around the world is only made after the student's study of management dimensions International processes during its university program. Examples of these courses include the following:

  Introduction to the Department of International Operations Survey Course

 This course is a necessary introduction to identify the areas of study of international business management and to identify the environmental variables affecting the success of companies worldwide. This course is of the survey type. This means that the coverage of the topics covered is horizontal coverage in the sense of multiple subjects to give a panoramic view of the science without entering vertically in the study of these subjects without any in-depth study of these subjects without any in-depth study of these topics in detail.

Functional courses Functional Courses

 These courses are concerned with studying the international dimensions of the various functions of the project, for example: international marketing

. Multinational corporations (MNC's)

 The multiplicity of courses for the study of multinational companies but can be classified into two groups.

 Management of multinational corporations

These decisions focus on the administrative functions of the project.

B - Strategic Management of Multinational Corporations

 These courses focus on the strategic aspects of multinational corporations.

 Different geographical areas

 These courses are concerned with studying the business climate in the geographical regions around the world. For example, there are decisions dealing with the new industrial countries in South East Asia. Therefore, they are exposed to the economic and political political climate of these countries and national companies operating in these countries' markets and strategies.

 Global Industries Global Industries

 There is a growing interest in the study of the phenomenon of international industries such as the automotive industry, the pharmaceutical industry and the electronic industries. These are the industries in which a limited number of giant transnational corporations control their various markets around the world. Therefore, dealing successfully with these industries requires a careful and accurate understanding of the structure of each industry and its success factors. With it in an integrated manner and not in part ineffective.

Professional levels of study

Master of International Operations Management is familiar with the availability of three levels of knowledge and understanding that students can access, respectively:

Level of awareness of the field of international operations Awareness Level

The aim here is to inform the student about the various areas of international operations management and its importance for the success of businessmen and companies in the global competition.

 Understanding Level

This level is higher than the previous level and is meant here that the student has a high degree of understanding of the rules of assets of international operations management.

 Advanced Level Competency Level

 This level is the highest level of understanding, ability and ability to design and carry out international activities and processes with high professionalism and excellence.

 Importance of International Operations Management Study

The importance of the study of international operations management has increased as a result of the new changes in the global arena and the realization of the informed and renewed understanding of the science of international operations management benefits from the macroeconomic level of the country or the level of the company.

 The benefits of managing international operations at the macroeconomic level

Helping to raise the standard of living of citizens

The high standard of living of citizens in a given country depends on the degree of success of this country in the positive integration with the global economy, which helps to achieve economic development and achieve a high degree of well-being of the citizens of this country. There is no doubt that international business management helps the state by providing them with the skills and cadres capable of successfully accomplishing these tasks.

 Work towards balancing the balance of payments

As a result of understanding the business rules of the international economic environment and the success of dealing with them, the state and its institutions can achieve balance in payments.

- Contribution to job creation

Achieving economic growth and balancing the balance of payments through the successful management of international operations will undoubtedly create new employment opportunities in the national economy.


B. Benefits of international operations management at the micro level (company level).

1 - Helping the company to achieve economies of scale and is produced by expanding the international activities of the company in different markets around the world, enabling them to increase the size of their operations and enjoy economies of scale.

2 - Contributing to the success of the company to rise the curve of education quickly and this results in savings in the activities of the company and improve the efficiency of performance, which gives it a competitive advantage over its opponents who do not go out in their activities from the local market only.

3 - Helping companies to raise their competitive skills Competition in different foreign markets helps companies to develop their competitive skills and thus increase the chances of success, both nationally and internationally.

The proposed theoretical framework for the study of international operations management

From the previous review of the evolution and definition of the science of international operations management we find that the subject can be studied from several angles of multiple levels, which can focus on studying each of the following:

the global economy: This may include the structure and mechanisms of dealing and rules governing it.

 sovereign state: This includes the general characteristics of the state and its features at the global level and the historical role and mechanisms of linking and interaction between them and the world economy with its various components.

 Companies: There are different types of companies and different patterns used to deal with different foreign markets and different objectives and strategies for this deal.

 Global economic transactions: This aspect deals with the global economic transactions that concern in the form of commodity flows, financial, technical or propagation that are recycled within the international economic system and thus follow the movement and size of these flows and the factors affecting them and how to deal with them at different levels.

Global economic systems: This means the global systems that control and regulate economic transactions on the global scale, such as the global trading system, where the World Trade Organization is the focus of this system as well as the international monetary and financial system with its various organs such as the IMF and IBRD and the International Bank of Compensation and current global markets such as Euromarket.

 structural changes of the global economy: which takes the form of continuous processes during an extended period of time such as globalization and regionalism.
Globalization processes are currently under way.

 It is intended to reduce distances between different countries, both natural and cultural as a result of progress in the means of communication and communication and thus the scope of competition between countries and companies in an attempt to control the global economy and achieve rising welfare rates for citizens as shareholders or shareholders of giant companies also occurs now called the Regionalization Process Or the so-called international economic blocs such as the European Common Market (EEC) or the North American market known as NAFTA or the East Asian Market (ASEAN) in an attempt to create regional blocs to strengthen the position of Member States in the international arena.

It is clear from the previous review of the theoretical framework of the study of international operations management that it is difficult to separate these levels from each other and to achieve the required understanding. At the same time, trying to address them in detail becomes an ambition that is difficult to achieve, but we will try on related articles on international business management in your website. .

These articles are a survey of international business fields and the aim is to create a state of awareness of the importance of international operations management.

In the end, you are now very familiar with the management of international business and its importance and the specialization of international business management and some access to this article and articles related to international business management on your site Black Business will be able to do any research on international business management.