1. Large Scale Operations:
In International business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a very large scale. It first sell its goods in the local market and then the surplus goods are exported.
2. Integration of Economies:
International Business integrates (combines) the economies of many countries. This is because it uses finance from one country, labour from other country and infrastructure from another country. It designs the product in one country, produces its parts in many different countries and assembles in another country and sells in many countries.
3. Dominated by developed countries and MNC’s
International Business is dominated by developed countries and their multinational companies. Europe and Japan dominate the foreign trade, this is because they have high financial and other resources.
4. Benefits to Participating countries:
International Business gives benefits to all participating countries. However, the developed countries get the maximum benefits, the developing countries also get benefits. They get foreign capital and technology. They get rapid industrial development. They get more employment opportunities.
5. Keen Competition:
International Business has to face competition in the world market. The competition is between unequal partners. In this situation, the developed countries are in favorable position as they produce the superior quality goods and services, but developing countries find difficulty to face competition.
6. Special role of science and technology:
International Business gives a lot of importance to science and technology. Science and Technology helps the business to have a large scale production. Developed countries use high technology. International business helps them to transfer top-end technology to the developing countries.
7. International Restrictions:
International Business faces many restrictions on the inflow and outflow of capital, technology and goods. Many government do not allow international business to enter their countries. They have many trade blocks, tariff barriers, foreign exchange restrictions, etc. All this is harmful to international business.
8. Sensitive Nature:
The International Business is very sensitive in nature. Any changes in the economic policies, technology, political environment has a huge impact. Therefore it must conduct marketing research to find out and study these changes. They must adjust their business activities and adopt accordingly to survive changes.