🌍 Introduction to International Business

💡 The main reason for companies to move to global markets is to take advantages of the economies of scope.
🏭 Economies of production arise due to the Economies of scale of the country in which the companies produce.

📈 Stages of International Development

The stages of international development describe how a company evolves from a purely domestic firm to a fully global enterprise. Here’s the ascending sequence with explanation:

🏠 (A) Domestic Company

📌 Focuses entirely on the home market.
❌ No international business activity.

📦 (B) Domestic Company with Export Division

🚚 Begins to export products.
🏢 Creates an export department but remains domestically focused.

🌎 (C) Primarily Domestic Company with International Division

⚙️ Starts actively managing international operations.
🌍 International division handles export, licensing, and foreign operations.

🧩 (D) Multinational Corporation with Multidomestic Emphasis

🌐 Operates in multiple countries.
🛠️ Adapts products and strategies to local markets.
🔄 Each country operates somewhat independently.

🌐 (E) Multinational Corporation with Global Emphasis

🌍 Sees the world as one large market.
🔗 Integrates operations globally to achieve efficiency and synergy.
📦 Standardizes products and strategies across countries.