쉐도잉 연습: International Business Explained: Why Go International? - 영상으로 영어 말하기 배우기
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So why do companies participate in international business?
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Let's find out.
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Organizations participate in international business for the same reason students engage in academic pursuits.
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Except international businesses last indefinitely
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while your college days will hopefully come to an end at some point in time and hopefully with a degree.
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The three major objectives of international business include one increasing sales, two acquiring new resources and knowledge,
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and three reducing the risks associated with operating in just one market.
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Students enroll in college to increase their earning potential, acquire new resources and knowledge, and reduce the risk associated with a competitive labor market.
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Let's talk about each objective.
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First, increase sales.
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Many students come to college with dollar signs in their eyes, comparing average yearly salaries for their industries with their monthly paycheck from their high school job at, say, the burger barn.
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Similarly, organizations are drawn to international activity for the increased earning potential it offers.
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They select markets and design products to maximize profit in the same way
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that a student might select a major based on a high earning potential.
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On to resources and knowledge.
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College and universities offer students access to labs, libraries, experienced professionals, conferences and events that help them improve their potential.
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College students who don't venture beyond their class schedule are living below their privileges.
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Similarly, organizations engage in international business to acquire new resources and knowledge.
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By conducting business internationally, organizations gain access to additional natural resources, services, lower production costs and higher quality goods and services,
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and untapped genius in new markets.
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Beyond the tangible benefits, conducting business in a foreign country exposes organizations to innovative business methods
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and thoughtful processes that meet customer needs.
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And finally, risk.
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Students and companies alike seek to reduce risk.
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By obtaining an academic degree or trade certification, students reduce the risks associated with unemployment or underemployment.
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They increase the number of jobs for which they qualify, make themselves more valuable to employers, and more competitive with their peers.
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Similarly, organizations that operate internationally reduce the risk associated with operating in one market alone.
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Just as an individual with a degree can more easily find a job in a recession,
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a global organization can more easily find sales in other markets should one of the countries face an economic downturn.
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International businesses also reduce the risk that their competitors achieve a competitive advantage through international businesses of their own.
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So, although higher education and international business are both costly, they increase income or sales, add valuable resources and knowledge, and reduce inherent risk.
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But, for an organization to successfully operate internationally, its leaders must first check out the landscape.
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Look before they leap.
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To learn how they assess the external factors present in a global environment, watch our video, Pest Analysis.
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