The paper "International Business Theory " is a great example of business coursework. International theory helps business units to understand the business world better. International theories provide business units with a better understanding. This helps the local and global business units to develop their strategies accordingly. With borders disappearing and countries entering into treaties international theories are making it easy for business units to understand the way business should function. This makes it easy to get acclimatized to the way to perform when the competition is at the highest level. Understanding the international theory and way business is done at a global level helps to prepare for it.
This will help the local business units to “ buy and sell goods in the market which are profitable, distribute those in the best countries which favour them, produce at the lowest cost, get a global outlook and achieve economies of scale” . Understanding the international theory will help to achieve the above factors and face competition. This will give companies the motivation to improve. The international theory will also help to understand the culture that will help to achieve wonders.
This will help the business world to understand the need to be “ flexible so that they can grasp the strategic options which might arise due to environmental changes” . This will be possible by understanding the way international companies work. Understanding this will help them to make their path easy and help them grow. It will also reflect on the employees’ morale. Understanding the way international business works will also help to draft the correct strategy. When an understanding is created for the employees’ morale on the global level better methods can be devised for the local business units.
This will also ensure that the company profits increases. Understanding the international theory will help business units to get a comparative advantage. By replicating the success models and ways of working local business units can be ahead of competitors. This will also help business units as the comparative advantage by being a differentiator can be used. This will help to get more customers. The international business theory will also help business units understand the factor efficiency has. It helps business units to work towards that.
This will give them an edge. They will be able to know to utilize their learning. It will thereby ensure that global conditions are replicated. This will give them a global look in the local environment. This will help to get more customers and ensure that business units build their strategies and help in capacity creation and proper utilization of that capacity. The international theory thus helps to build long term strategies. The business units can foresight and understanding those they can be ahead and ensure that when they become global they are successful.
The formula which has worked for other companies might be worthwhile. Thus international business theory helps to understand the business world. International theory helps to understand the business better as it helps to “ understand condition such as culture, caste, religion and prevalent customs” . It helps to understand the different customs. It throws light on the important things business units should do. This also helps to understand the factors which need to be worked on. It, therefore, helps to develop an all-round strategy.