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Ibm - Assignment 3

National level businesses are important to support international businesses for several reasons: 1) Operating successfully at the national level provides experience in important business decisions like pricing, marketing, and dealing with challenges that also come up internationally. This experience helps businesses navigate the international market. 2) National businesses boost a country's overall economy and balance of payments by bringing in foreign currency from international sales and investments. A stronger national economy then supports international expansion. 3) National level experience with regulations, customer needs, and business strategies provides international businesses with knowledge for addressing issues in foreign markets. National businesses can draw on this experience to survive competition internationally.

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Adil Shrestha
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122 views

Ibm - Assignment 3

National level businesses are important to support international businesses for several reasons: 1) Operating successfully at the national level provides experience in important business decisions like pricing, marketing, and dealing with challenges that also come up internationally. This experience helps businesses navigate the international market. 2) National businesses boost a country's overall economy and balance of payments by bringing in foreign currency from international sales and investments. A stronger national economy then supports international expansion. 3) National level experience with regulations, customer needs, and business strategies provides international businesses with knowledge for addressing issues in foreign markets. National businesses can draw on this experience to survive competition internationally.

Uploaded by

Adil Shrestha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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❖ Why national level business are important to support international business?

ANS: The business transaction that occur within the geographical limits of the country is known
as domestic business. It is a business entity whose commercial activities are performed within a
nation. Alternatively known as internal business or sometimes as home trade. The producer and
customers of the firm reside in the country. In a domestic trade, the buyer and seller belong to
the same country and so the trade agreement is based on the practices, laws and customs that
are followed in the country.
International business on the other hand is a business whose manufacturing and trade occur
beyond the borders of the home country. All the economic activities indulged in cross border
transactions comes under international or external business. It includes all the commercial
activities like sales, investment, logistics etc., in which two or more countries are involved. An
international business does not fall so much to the dispensation of local law, but within
international agreements for business practice.
National level business definitely will support in function of international business. To get access
in international market, domestic business foremost need to legally establish its business in its
own country. While operating the business at national level, it need to make several business
decision/strategy regarding price of the product, advertising strategy, marketing strategy.
Keeping the knowledge requirements, practices culture, domestic marketing and advertising
strategy are used. Such experience in national level will help to make any business decision in
international business. For instance: Since, the domestic business has already stated the price of
the product in national level, it will be easy for them to fix the price of the product in international
market just by conducting business research such as demand analysis and customer survey.

National level business will also help to boost the overall economy of the country and balance of
payment by doing international business. These kind of activities will help the country to gain
foreign currency. Therefore, national business helps in the economic sector of the country. It even
supports international business. National business support in initiatives as it supports local
business and even motivates business person to take initiative to start a new venture or business.
National business also provides various trainings in regards to operating a new business along
with all the business activities.
Since domestic market faces various kind of challenges like political, environmental, socio-
cultural, technological etc. while operating its business at national level. Therefore when national
business faces similar kind of challenges in international market, national level business can use
SWOT analysis to solve the problems and even gain competitive advantage in such situation
These strategies and experience of the national business can help a lot for the business to run
successfully in the international level whereas along with such experience of national business
for any business to survive in a competitive international market.
Thus, national level business can be a supporting backbone for the international business. The
demand and size of the international market is unpredictable and huge which can change along
with international market time because of which for any business to survive it has to act
accordingly to survive in the. National level business can play a vital role in this providing not only
with the experience and strategies of running the national level business but also with the
financial support. Therefore , for a business to run successfully internationally the national level
business should do well equally side by side along with the international business so that it can
act as a supporting backbone for the international business for surviving in the international
business when required . Hence we can say that National level business are important to support
international business.

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