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International Business

International business involves commercial activities that cross national frontiers. It concerns the international movement of goods, capital, services, employees and technology; importing and exporting; cross-border transactions in intellectual property (patents, trademarks, know-how, copyright materials, etc.) via licensing and franchising; investments in physical ; financial assets in foreign countries; contract manufacture or assembly of goods abroad for local sale or for export to other nations; buying and selling in foreign countries; the establishment of foreign warehousing and distribution systems; and the import to one foreign country of goods from a second foreign country for subsequent local sale. The reason for entering into the foreign market because of the push and pull factors. The push factor contains the saturation of the domestic market where the pull factor attracts the investor to enter into the new market. The entry strategies to the foreign market are Exporting, Licensing, Joint Venture, Direct Investment, and Exporting. It can also explain as the expansion of the business function to various countries with an objective of fulfilling of the need and want of the international customer.

 

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