International Business factor

Since the Second World War, international business appeared as the main economic factor responding to postwar needs. Nowadays, globalisation has increased the facility of international exchange and has risen the multicultural needs.The increase in demand for international products has resulted in large possibilities to do business abroad. However, it is really complicate to import or export without knowledge in this area. Global business is all of the commercial exchanges which involve more than one country. Understanding and applying the major factors of overseas business is crucial. In fact, it is clear that the most important factors involved in international exchange include foreign culture, transport and payment transaction. This essay will demonstrate these essential factors. In the first part, this essay will advance the importance of foreign culture which include the country 's background, usual practice and protocol. In the second part it will show important aspects of transport methods and incoterms. Finally, this essay will present the international payment methods of the bank transfer and letter of credit.

An important part of international exchange is to understand the foreign culture of a country in terms of background, practice and business protocol of the country. In their book Morrison and Conway (2006, p. viii) demonstrate how a simple mistake could have irreversible consequences in international trade. As they explain , every country has a different background which influences businesses behaviour. For example, Belarus proclaimed its independence in 1991. Morrison and Conway (2006, pp. 29, 31) state that even though Russia still influences its education and media interest, it is important to consider its own identity. In fact, Belarusians could be intransigeant for some minor mistakes made about their culture. Then, all businesses need to know the overseas companies practice which are indispensable to create and maintain a good