Business On A International Level
Many companies have taken their businesses and ventured into the international business world. Seeking to expand their companies bottom line, many companies have moved their plants to various countries throughout the world. For those seeking to make this idea your reality, there are several things one must consider. The most important thing is to get a broad and extensive understanding of International Business Law. This is the standardization of fundamental business practices throughout the world. This process is believed to promote global interdependence and transcends national states by establishing economic growth worldwide. International business law was established as a result of the United States victory in World War II. After winning World War II,the United States went about establishing the process of standardizing business practices worldwide. The American trading system put several legal standards into motion hoping to create a global regime of free trade with the U.S currency being the base dollar.
At its core, international business law is a issue of self interest. By having a single legal framework to govern international transactions, significant amounts of money has been saved. If a company had to constantly modify their functioning based on individual states, the cost would be too high and doing business overseas would be pointless. International business law has provided several avenues for profiteers to navigate through its legislation. International business law, at its root, is about transcending the nation state as the only source of legal authority. International business has become significantly easier and more profitable because of two reasons. First, technological developments have made global communication and transportation relatively quick and convenient. Second, the annihilation of a substantial part of the communist world. This has opened up many of the world's economies to private business. Generally, capital is the most mobile of all the factors of production and can move relatively easily from one nation to another. Other factors of production, such as land and labor, either do not move or are less mobile. The result is, where capital is available in one country, it may also be used to invest in other countries. This allows the savvy businessman to take advantage of another nations' land or labor.
International business differs from domestic business primarily because of the constant environment changes afforded by nation to nation business. In business countries are divided into three main categories: the more developed, the less developed, and newly emerging economies. Each category presents a different challenge economically, as each nation has significantly different financial resources. These distinctions are based of gross domestic product per capita(GPD/capita). It should be noted that international business law is vast and extensive and should approached accordingly. However, once a reasonable understanding is acquired the possible financial payoffs priceless.
