International business theory is heavily dependent on economics whilst international management draws on business policy and strategic management, which themselves derive strength from core concepts in organization behavior, marketing, economics and psychology.
International Business and International Business Management are related concepts but have distinct focuses and scopes. While international business involves the broader concept of conducting business activities across borders, international business management is more focused on the strategic and managerial aspects of operating in the global marketplace. International business management is an integral part of international business, as it deals with the planning and execution of international business strategies.
Here is a differentiation between the two concepts:
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Definition:
International Business: International business refers to the exchange of goods, services, technology, and information across national borders. It encompasses all the activities involved in conducting business transactions between individuals, companies, or governments located in different countries.
International Business Management: International Business Management is a subset of international business. It specifically deals with the management and organization of international business operations. It focuses on the strategies, policies, and practices required to operate and expand businesses in the global marketplace.
International business is the broader concept that encompasses all activities related to conducting business across national borders. It includes various aspects such as trade, investment, marketing, finance, supply chain, and legal compliance in the global context. International business management is a subfield within international business. It specifically deals with the management and organizational aspects of international business operations. It focuses on how to plan, coordinate, and control activities to ensure that a company’s global operations are successful.
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Scope:
International Business: International business covers a broader spectrum and includes various aspects such as trade, investment, global marketing, international finance, cross-cultural communication, and the legal and regulatory frameworks of different countries.
International Business Management: International Business Management narrows its focus to the management aspects of international business. It involves topics like international market entry strategies, supply chain management, international human resource management, and global business development.
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Objective:
International Business: The primary objective of international business is to engage in cross-border economic activities, maximize profits, and achieve economies of scale by operating in multiple markets or countries.
International Business Management: The main objective of international business management is to effectively plan, coordinate, and control the activities of a company’s international operations. It aims to optimize resources, minimize risks, and ensure the company’s global competitiveness.
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Roles and Responsibilities:
International Business: Individuals involved in international business may include exporters, importers, traders, financiers, and marketing professionals. They focus on the actual transactions and interactions between businesses in different countries.
International Business Management: Professionals in international business management typically hold managerial or executive positions within companies with global operations. They are responsible for making strategic decisions, setting international business goals, managing international teams, and ensuring overall business success on a global scale.
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Skills and Knowledge:
International Business: Proficiency in international trade regulations, cross-cultural communication, market analysis, and negotiation skills are crucial for success in international business.
International Business Management: Professionals in international business management require skills in strategic planning, leadership, global market research, risk management, and international finance, in addition to a deep understanding of the international business environment.
Conclusion:
Generally, international business and international business management are related in that the latter is a specialized area within the former. International business management plays a pivotal role in ensuring the success of international business endeavors by providing the necessary management and organizational framework to navigate the complexities of the global marketplace.
