The changing technology environment has and still become one of the biggest challenges in international business management. Technological changes can wreak havoc on industries. In making decisions regarding technological changes, companies err in two ways. They either commit themselves to a new technology too fast and burn their fingers or wait and watch while another company comes up with a new technology that puts them out of business. The issue of when and how to react to the emergence of a new technology is a matter of judgment. However, this judgment need not be based purely on intuition. By doing a systematic structured analysis of developments in the technological environment and putting in place the necessary organizational mechanisms, technology risk in business can be considerably reduced.… Read the rest
International Business Management
Standardization and Adaptation of International Business
By the growth of business when companies starts their operations in other countries they are called global or international companies, at that time of growth their business strategies that being used in their home countries are no more effective, since global business dynamics are different from local business environment and local business objectives are different from global business objectives, there is a need to have a global business strategy that is not able to achieve global business objectives but also able to make the organization perform in home country, at the same time that strategy should be able to meet short term and long term goals of the organization, while looking at goals shorts term goals can be managing cash flows, revenue targets, market share and cost management and long term goals can be having sustainable competitive advantage and brand building leading to continued profits and growth.… Read the rest
Intellectual Property Rights (IPR) – Concept, Benefits and Weakness
For a sustainable growth and economic development of a country, innovation and creativity is a very important dimension. Industries and the global markets of the 21st century rest on the intellectual property protection as it is one of the central public policy. By the mid-1990s, a minimum global standard for IPR had been preserved in the WTO Charter through the incorporation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
The transfer in international economic policy and the lowering of tariff and non-tariff trade barriers to the embrace of strong IPR is genuinely an issue of controversy. Intellectual property rights (IPR) are legal claims settled by governments within their relevant sovereignties that grant trademark, patents and owners of copyright the exclusive right to exploit their intellectual property for a certain period.… Read the rest
Free Trade Zones – Definition and Meaning
In simple words, free trade means free international trade. The classical economists like Adam Smith, Ricardo and others strongly favored free trade and this doctrine held the field for nearly one hundred years. How ever later, the countries all over the world began to adhere to the policy of imposing restrictions in one form or other.
History and Development of Free Trade ZonesDuring the last 20 years, the labor charges in developed countries have increased substantially. According to a recent estimate, the labor cost is nearly 1 USD per hour for semi-skilled workers in most European Countries, U.S and Japan.… Read the rest
Role of Clearing and Forwarding (C&F) Agents in Exports
Shipping is the most commonly used method of dispatching goods to a foreign country. Under shipment, one shall cover all the procedural aspects from the time the product meant for export leaves the factory site till it is loaded on board the ship and the relevant documents are collected from the shipping company. Since the type of work involved is somewhat specialized it is usually entrusted to the clearing and forwarding agents. This section focus on role of clearing and forwarding agents in export assignment.
1. Customs FormalitiesGoods can be shipped out of India only after obtaining the customs clearance.… Read the rest
Issues of International Technology Transfers
International technology transfer is the process by which a technology, expertise, know how or facilities developed by one business organization (MNC in the case of international business) is transferred to another business organization. There are many issues associated with the international technology transfer. The most important international technology transfer issues are; ways of technology acquisition, choice of technology, terms of technology transfer, and creating local capability.
Modes of Foreign Technology AcquisitionOne of the major issues in technology transfer relates to the mode of acquisition. Developing new technology may conjure up visions of scientists and product developers working in R&D laboratories.… Read the rest