International Business Cross Border Commerce - 1460 Words

International business is also known as cross border commerce. Only half of American businesses pursue overseas opportunities. A variety of reasons keep American businesses from pursuing a global market. The biggest reason for not engaging in cross border commerce is fear, lack of knowledge. With education, international businesses can be effective, efficient, and profitable. Having a basic understanding of globalization leads to building a more solid foundation of understanding the environmental aspects impacting international global businesses today. By applying trade investment theories, one can also explore global financial markets and monetary systems that affect cross border commerce. Ultimately leading to consider entering the†¦show more content†¦Companies expanding their services in other countries tend to not want to change their product based on the different cultures due to an increase of capital spent on the adaptation of their goods and services. For example, M cDonald’s, an American company based out of San Bernardino, CA, ventured out to British Columbia in 1967. McDonald’s began changing their menus based on the culture of each country they resided in, which in return proved beneficial to the company because the locals accepted the American franchise (James, 2009). Apply The Concepts of Culture to The International Business Setting Culture is described as a set of shared attitudes, values, goals, and practices that set apart itself from the others. When a company establishes a business in another country, they must keep in mind the different cultures. There might be a difference in communication, religion, ethics, and values that a company shall adapt too in order to be successful. If the local culture is ignored, it could result in an unsuccessful business, protests, or boycott of the company’s goods and services. Companies that are interested growing internationally have to spend the time and money researching and gathering data about the different cultures before establishing their business. Not only does the company have the responsibility of having to respect the different cultures but also their own when conducting business internationally. One of the biggest struggles of