16. The peculiarities of the management of business in 21 century

The management of international business has significant differences from the one, which is conducted in the limits of the country. The things, about which the national companies don’t even think, are in great importance for the successful activity of the firm. It is evident the necessity of the assiduous learning of the peculiarities of the conducting and administration of the international business, which are studied by the international management.

”The international business is the enterprising activity which is connected with the usage of the fund in the different forms and advantages of the increased business activity; it is held for the receiving of the income and is spread in the international economic sphere.”

The main reasons of the accomplishment of the international business:

1) The access to the new sources of minerals and raw materials;

2) The access to the new labour markets;

3) The aspiration to the new target markets.

In the modern stage of the conducting the business you cannot not to take into consideration the globalization. Nowadays the globalization is the real aspect of the modern world system, one of the most influential powers that determine the further development of our planet. It includes all spheres of social life, such as economics, politics, social sphere, culture, ecology etc.

The globalization is the natural development of the integration processes in the modern world economy.

Also, the important role in the international business has TNC. Transnational corporations are the corporations that possess or control the industrial assets in two or more countries by making the straight foreign investments or as a result of the creation of the strategic alliance with the foreign companies.

17. Стратегії входження на нові ринки

Access to international markets and expanding trade relations with foreign countries is dictated by the needs of different businesses and causes of their occurrence. In general they are:

Development of the domestic market (market saturation goods; pressure amplification competitors dependence on trade facilitation, especially in matters of quality, price, kapitaloviddachi and expand production, increase fees related to environmental protection, compliance difficulties of social legislation), in which profitable to invest capital abroad.

Activity of foreign competitors and its success in the domestic market are forced to seek their own opportunities. Not least because of the need to maintain their image at the appropriate level.

Overcoming depending on the domestic market and "scattering" of risk by the conquest of foreign markets.

Solving the problem depends on the firm seasonal fluctuations in demand in the domestic market.

The process of exit of firms in international markets can be considered as a process of gradual evolution. Differences between well-known and sometimes even secure domestic market and distant and risky foreign markets seem so great that many firms prefer gradual to overcome them.

To gain access to foreign markets the company may go through several phases, each with its own characteristics.

Age of the export sale begins with a test export. This is a rather superficial unilateral action based on one-way movement of domestic products and the ability to sell. If you accidentally selected agent can operate in one market, the same solution used for the other market. Most - promising sales, but no repeat orders. Profits are small, and the costs are too high for the initial establishment of contacts.

By trial export can proceed to extensive sale. This way you can cover only a small number of markets, and those that remain - grouped by categories: basic, secondary, and possibly third-. Then you need to limit the range of products that are exported to the level most appropriate for a particular market and that will give the highest expected return. Overseas sales network exporter should receive more support, and national organizations - show greater activity in the collection and accumulation of marketing information. This phase is called the phase of intensive sales, stressing that, that market contacts are more profound and effective, but they still continue to add domestic internal market.

Gradually, the concentration of effort leads to a more mature phase, called the export marketing.