In today’s open global economy most of the business concentrate on marketing the business to foreign countries. Some of the business organizations even market products to different parts of the globe. It is necessary for a manager to understand the different types of business activities to ensure the success. There are mainly four levels of international business activities which are described below.
Companies with Domestic Business Activities
In the case of domestic small business organization the operations are carried out within a country. These companies compete with other small business companies in the market and sell products to the country it is situated.
Companies with International Business Activities
Some small business organizations import raw material from other countries and export the finished to some foreign countries as part of their business. The price of the product depends on the nature of products being sold overseas. The success of such companies is depended on the nature of customers.
Companies with Multi-National Activities
Some companies establish subsidiary units in other countries as part of the business expansion and such companies are having a multinational presence. In such cases, the headquarters of the company will be within the native country. In taking a subsidiary company the original company should take over by joint agreement with a company in the foreign country. The nature of activities to a subsidiary might differ from that of the native country.
Companies with Global Business Activities
Companies having a global presence which sells products in a dozen companies with specific products are examples for these type of companies. These companies also develop products that are specific to the countries in some cases.