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74-483: Financial Chronicle ( FC ) is an Indian English-language daily newspaper published since 2008. The newspaper primarily covers Indian economic and international business topics, and financial news and issues. Financial Chronicle , edited by Shubhrangshu Roy, was simultaneously launched from Hyderabad and Chennai on 16 April 2008. The Bangalore edition was launched on 25 May, and the Mumbai edition on 20 June. With

148-650: A company can become an international business. Therefore, to conduct business overseas, companies should be aware of all the factors that might affect any business activities, including, but not limited to: difference in legal systems, political systems, economic policy , language , accounting standards , labor standards , living standards, environmental standards , local cultures , corporate cultures , foreign-exchange markets , tariffs , import and export regulations, trade agreements , climate , and education . Each of these factors may require changes in how companies operate from one country to another. Each factor makes

222-419: A conflict. People want to live in a clean and quiet environment, without pollution or unnecessary noise. If a conflict arises, this may lead to a negative change in customer's perception of the company. Actual or potential threat of adverse effects on living organisms and environment by effluents, emissions, wastes, resource depletion , etc., arising out of an organization's activities is considered to be risks of

296-508: A country and the rest of the world is called foreign or international trade , which consists of import trade and export trade, both being wholesale in general. Commerce not only includes trade as defined above, but also the auxiliary services or aids to trade and means that facilitate such trade. Auxiliary services aid trade by providing services which such as transportation , communication , warehousing , insurance , banking , credit financing to companies, advertising , packaging , and

370-412: A country that has an uncertain assurance of safety from these attacks. Bribery is the act of receiving or soliciting of any items or services of value to influence the actions of a party with public or legal obligations. This is considered to an unethical form of practicing business and can have legal repercussions. Firm that want to operate legally should instruct employees to not involve themselves or

444-407: A country's situation and put a firm in an awkward position. Political risks are the likelihood that political forces will cause drastic changes in a country's business environment that hurt the profit and other goals of a business enterprise. Political risk tends to be greater in countries experiencing social unrest . When political risk is high, there is a high probability that a change will occur in

518-713: A country. International commerce can be regulated by bilateral treaties between countries. After the second world war and the rise of free trade among nations, multilateral arrangements such as the GATT and later the World Trade Organization became the principal systems regulating global commerce. The International Chamber of Commerce (ICC) is another important organization which sets rules and resolves disputes in international commerce. Where national government bodies undertake commercial activity with or inside other states, this commercial activity may fall outside

592-438: A crucial role in sustainable development, as companies increasingly prioritize ethical practices, environmental responsibility, and social impact. Collaboration between governments, businesses, and international organizations is essential to address issues like climate change, labor rights, and economic inequality. In essence, international business is a dynamic force driving economic growth, fostering global cooperation, and shaping

666-459: A departure from the earlier norm where firms held minor or passive ("portfolio") investments abroad. This paradigm shift necessitated a fresh nomenclature, leading to the introduction of the term "multinational enterprise" (MNE), referring to entities with substantial operations in multiple nations. "International business" is also defined as the study of the internationalization process of multinational enterprises. A multinational enterprise (MNE)

740-400: A difference and a connection. One of the first scholars to engage in developing a theory of multinational companies was Canadian economist Stephen Hymer . Throughout his academic life, he developed theories that sought to explain foreign direct investment (FDI) and why firms become multinational. There were three phases of internationalization according to Hymer's work. In this thesis,

814-488: A diverse range of channels that facilitate the dissemination of information and communication among businesses operating across borders. These channels play a crucial role in keeping stakeholders informed about global market trends, emerging opportunities, and potential risks. Here are some of the key types of international business media: In addition to traditional media, there are also a number of social media channels that focus on international business. These channels can be

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888-422: A firm appropriate tools to reduce risk of failure abroad. Risks that arise from poor planning include: large expenses in marketing, administration and product development (with no sales); disadvantages derived from local or federal laws of a foreign country, lack of popularity because of a saturated market , vandalism of physical property due to instability of country; etc. There are also cultural risks when entering

962-425: A foreign market. Lack of research and understanding of local customs can lead to alienation of locals and brand dissociation. Strategic risks can be defined as the uncertainties and untapped opportunities embedded in your strategic intent and how well they are executed. As such, they are key matters for the board and impinge on the whole business, rather than just an isolated unit. A company has to be conscious about

1036-498: A general sense, business is the activity of earning money and making one's living through engaging in commerce. However, in a more specific sense, a business is an organization or activity for making a profit by providing goods and services which meet the needs of its customers or consumers. Business organizations typically operate in the primary (dealing with the extraction and sourcing of raw materials) and secondary (dealing with manufacturing intermediate or finished goods) sectors of

1110-407: A good way to stay up-to-date on the latest news and developments, and they can also be a valuable platform for connecting with other businesses and professionals. To achieve success in penetrating a foreign market and remaining profitable, efforts must be directed towards the planning and execution of Phase I. The use of conventional SWOT analysis , market research , and cultural research, will give

1184-426: A government governs a country ( governance ) can affect the operations of a firm. The government might be corrupt , hostile, or totalitarian ; and may have a negative image around the globe. A firm's reputation can change if it operates in a country controlled by that type of government. Also, an unstable political situation can be a risk for multinational firms. Elections or any unexpected political event can change

1258-448: A government will indiscriminately change the laws, regulations, or contracts governing an investment—or will fail to enforce them—in a way that reduces an investor's financial returns is what we call 'policy risk.'" Exchange rates can fluctuate rapidly for a variety of reasons, including economic instability and diplomatic issues. Terrorism is a voluntary act of violence towards a group(s) of people. In most cases, acts of terrorism

1332-401: A host country (when these are higher) and gaining an experience curve . Some possible disadvantages to exporting are high transport costs and high tariff barriers . The second entry mode is a turnkey project. In a turnkey project, an independent contractor is hired by the company to oversee all of the preparation for entering a foreign market. Once the preparation is complete and the end of

1406-531: A host-country firm, or setting up a new wholly owned subsidiary in the host country. The first entry mode is exporting . Exporting is the sale of a product in a different national market than a centralized hub of manufacturing. In this way, a firm may realize a substantial scale of economies from its global sales revenue. As an example, many Japanese automakers made inroads into the U.S. market through exporting. There are two primary advantages to exporting: avoiding high costs of establishing manufacturing in

1480-577: A risk for a company to operate in a country and they may experience an unexpected economic crisis after establishing the subsidiary. Economic risks is the likelihood that economic management will cause drastic changes in a country's business environment that hurt the profit and other goals of a business enterprise. In practice, the biggest problem arising from economic mismanagement has been inflation. Historically many governments have expanded their domestic money supplying misguided attempts to stimulate economic activity. According to Professor Okolo: "This area

1554-524: A significantly higher chance of being sent abroad to work under the international operations of a firm. The following table provides descriptions of higher education in international business and its benefits. - General or operations managers ($ 95,000)* - Economists ($ 91,000)* - Internship or study abroad program - Foreign language requirement Commerce Commerce is the large-scale organized system of activities, functions, procedures and institutions that directly or indirectly contribute to

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1628-466: A static view of cross-border interactions. However, the term "foreign" often evoked notions of remoteness or strangeness, failing to capture the dynamic essence of international engagements. As commerce evolved with the advent of firms engaging in substantial direct investments across borders, newer terms to encapsulate the changing landscape. The mid-19th century marked the rise of companies owning and controlling production facilities in various countries,

1702-478: A weekend tabloid edition beginning 10 September 2011. Financial Chronicle also publishes four weekly all-colour feature sections. Financial Chronicle is a business broadsheet printed in white newsprint in 20 pages format on Mondays, Tuesdays, Thursdays and Fridays and 16 pages format on Wednesdays. Its weekend issue is published in 32 pages in tabloid format on Saturdays. The paper is owned by Deccan Chronicle Holdings Limited (listed on Bombay Stock Exchange and

1776-659: A wholly owned subsidiary, when a firm owns 100 percent of the stock of a company in a foreign country because it has either set up a new operation or acquires an established firm in that country. Exports and import Data is from the CIA World Factbook , compiled in 2017: Strategic variables affect the choice of entry mode for multinational corporation expansion beyond their domestic markets . These variables are global concentration, global synergies, and global strategic motivations of MNC. International Business Media International business media encompasses

1850-681: A wider variety of goods and services, and encourages innovation and competition for better products . On the other hand, commerce can worsen economic inequality by concentrating wealth (and power ) into the hands of a small number of individuals , and by prioritizing short-term profit over long-term sustainability and ethical , social , and environmental considerations, leading to environmental degradation , labor exploitation and disregard for consumer safety . Unregulated, it can lead to excessive consumption (generating undesirable waste ) and unsustainable exploitation of nature (causing resource depletion ). Harnessing commerce's benefits for

1924-617: Is a branch of law that basically aims to provide legal rules applicable to relations between business entities when the movement of products, services or values involves several countries. There has been growth in globalization in recent decades due to the following factors. Managers in international business must understand social science disciplines and how they affect different functional business fields. To maintain and achieve successful business operations in foreign nations, persons must understand how variations in culture and traditions across nations affect business practices. This idea

1998-637: Is a company that has a worldwide approach to markets, production and/or operations in several countries. Well-known MNEs include fast-food companies such as: McDonald's (MCD), YUM (YUM), Starbucks Coffee Company (SBUX), etc. Other industrial MNEs leaders include vehicle manufacturers such as: Ford Motor Company, and General Motors (GMC). Some consumer electronics producers such as Samsung, LG and Sony, and energy companies such as Exxon Mobil, and British Petroleum (BP) are also multinational enterprises. Multinational enterprises range from any kind of business activity or market, from consumer goods to machinery manufacture;

2072-481: Is a part of commerce and commerce is an aspect of business. Historian Peter Watson and Ramesh Manickam date the history of long-distance commerce from circa 150,000 years ago. In historic times, the introduction of currency as a standardized money facilitated the exchange of goods and services. Commerce was a costly endeavor in the antiquities because of the risky nature of transportation, which restricted it to local markets. Commerce then expanded along with

2146-420: Is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also affect the firm's ability to operate at an efficient capacity and still be stable." Furthermore, the taxes that a company has to pay might be advantageous or not. It might be higher or lower in the host countries. Then "the risk that

2220-440: Is also known as globalization . International business encompasses a myriad of crucial elements vital for global economic integration and growth. At its core, it involves the exchange of goods, services, and capital across national borders. One of its pivotal aspects is globalization, which has significantly altered the landscape of trade by facilitating increased interconnectedness between nations. International business thrives on

2294-460: Is categorized into domestic trade , including retail and wholesale as well as local, regional, inter-regional and international/foreign trade (encompassing import , export and entrepôt/re-export trades). The exchange of currencies (in foreign exchange markets ), commodities (in commodity markets /exchanges) and securities and derivatives (in stock exchanges and financial markets ) in specialized exchange markets also falls under

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2368-658: Is chairman of the company. FC was the first Indian business daily to have an ombudsman . Former Securities and Exchange Board of India chairman M. Damodaran was the first ombudsman. Shubhrangshu Roy is chief operating officer and editor-in-chief. Financial Chronicle had a tie-up with the International Herald Tribune which published the IHT World Business with Reuters as a four-page daily add-on, incorporating international news, views, analyses and features. The association ended with

2442-650: Is derived from hatred of religious, political and cultural beliefs. An example was the infamous 9/11 attacks , labeled as terrorism due to the massive damages inflicted on American society and the global economy stemming from the animosity towards Western culture by some radical Islamic groups . Terrorism not only affects civilians, but it also damages corporations and other businesses. These effects may include: physical vandalism or destruction of property , sales declining due to frightened consumers and governments issuing public safety restrictions. Firms engaging in international business will find it difficult to operate in

2516-466: Is gained through the knowledge and use of language, thereby mitigating a language barrier . A study by Lohmann (2011) in Economics Letters delved into the impact of language barriers on trade. The findings suggest that fluency in the local language can significantly enhance trade interactions. Advantages of being an international businessperson who is fluent in the local language include

2590-540: Is known as cultural literacy . Without knowledge of a host country's culture, corporate strategizing is more difficult and error-prone when entering foreign markets compared with the home country's market and culture. This can create a "blind spot" during the decision making process and result in ethnocentrism . Education about international business introduces the student to new concepts that can be applicable in international strategy in topics such as marketing and operations. A considerable advantage in international business

2664-437: Is not concerned with the extraction of raw materials and the manufacturing of goods. Viewed in this way, commerce is a broader concept and an overall, all-encompassing aspect of business. Commerce provides the underlying large-scale transactional environment comprising all kinds of exchanges within which individual business organizations operate for generating profits. Commerce is distinguishable from trade as well. Trade

2738-406: Is technological change, particularly developments in communication, information processing , and transportation technologies. The discourse surrounding international business has a transition in terminology over the years, reflecting shifts in understanding and the expanding scope of cross-border commerce. Initially, phrases such as "foreign trade" and "foreign exchange" were prevalent, embodying

2812-428: Is the difference between V (the value of the product being sold) and C (the cost of production per each product sold). Value creation can be categorized as: primary activities ( research and development , production, marketing and sales, customer service ) and as support activities (information systems, logistics, human resources). All of these activities must be managed effectively and be consistent with

2886-412: Is the transaction (buying and selling) of goods and services that makes a profit for the seller and satisfies the want or need of the buyer. When trade is carried out within a country, it is called home or domestic trade , which can be wholesale or retail . A wholesaler buys from the producer in bulk and sells to the retailer who then sells again to the final consumer in smaller quantities. Trade between

2960-538: The European Union ) or coalitions (like BRICS ) leading to its reconfiguration. The English-language word commerce has been derived from the Latin word commercium , from com ("together") and merx ("merchandise"). Despite many similarities (to the extent that they are sometimes used as synonyms in layman's terms and in other contexts), commerce, business and trade are distinct concepts. In

3034-478: The Industrial Revolution fundamentally reshaped commerce. In the post-colonial 20th century, free market principles gained ground, multinational corporations and consumer economies thrived in U.S.-led capitalist countries and free trade agreements (like GATT and WTO ) emerged, whereas communist economies encountered trade restrictions , limiting consumer choice . Furthermore, in

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3108-432: The firm strategy . However, the success of firms that extend internationally depends on the goods or services sold and on the firm's core competencies (Skills within the firm that competitors cannot easily match or imitate). For a firm to be successful, the firm's strategy must be consistent with the environment in which the firm operates. Therefore, the firm needs to change its organizational structure to reflect changes in

3182-401: The "franchisor" sells the intangible property to the franchisee, and also requires the franchisee operate as dictated by the franchisor. Lastly, a joint venture and wholly owned subsidiary are two more entry modes in international business. A joint venture is when a firm created is jointly owned by two or more companies (Most joint venture are 50-50 partnerships ). This is in contrast with

3256-426: The 15th to the early 20th century, European colonial powers dominated global commerce on an unprecedented scale, giving rise to maritime trade empires with their powerful colonial trade companies (e.g., Dutch East India Company and British East India Company ) and ushering in an unprecedented global exchange (see Columbian exchange ). In the 19th century, modern banking and related international markets along with

3330-845: The National Stock Exchange). Its flagship publication is Deccan Chronicle - an English daily widely circulated in Andhra Pradesh and is the second largest English daily in Chennai. Deccan Chronicle is also published in Bangalore. At launch, Financial Chronicle set up an editorial advisory board that included agricultural scientist M. S. Swaminathan , and eminent public personalities including, former telecom regulator Nripendra Misra , Mindtree founder Subroto Bagchi and Lok Sabha MP Sachin Pilot . T. Venkattram Reddy

3404-467: The author departs from neoclassical theory and opens up a new area of international production. At first, Hymer started analyzing neoclassical theory and financial investment , where the main reason for capital movement is the difference in interest rates . After this analysis, Hymer analyzed the characteristics of foreign investment by large companies for production and direct business purposes, calling this Foreign Direct Investment (FDI). By analyzing

3478-465: The company in such activities. Companies should avoid doing business in countries where unstable forms of government exist as it could bring unfair advantages against domestic business and/or harm the social fabric of the citizens. International business activities are governed by international commercial law , which is a set of legal rules, conventions, treaties, domestic laws and commercial customs used to regulate trade between countries. Therefore, It

3552-400: The contract is reached, the plant is turned over to the company fully ready for operation. Licensing and franchising are two additional entry modes that are similar in operation. Licensing allows a licensor to grant the rights to an intangible property to the licensee for a specified period of time for a royalty fee. Franchising, on the other hand, is a specialized form of licensing in which

3626-519: The country's political environment that will endanger foreign firms there. Corrupt foreign governments may also take over the company without warning , as seen in Venezuela. Technological improvements bring many benefits, but some disadvantages as well. Some of these risks include "lack of security in electronic transactions , the cost of developing new technology ... the fact that this new technology may fail, and, when all of these are coupled with

3700-624: The economic and political gap between countries. There is an increasing amount of demand for business people with an education in international business. A survey conducted by Thomas Patrick from University of Notre Dame concluded that bachelor's degree and master's degree holders felt that the training received through education were very practical in the working environment. Increasingly, companies are sourcing their human resource requirement globally. For example, at Sony Corporation , only fifty percent of its employees are Japanese. Business people with an education in international business also had

3774-411: The economy and their goal is to sell raw materials or manufactured goods for profit. In the tertiary sector , businesses sell services for profit. Commerce, in contrast to the concept of business discussed above, deals with the movement and distribution of raw materials as well as finished or intermediate (but valuable) goods and services from the manufacturers to the end customers on a large scale. It

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3848-531: The environment. As new business leaders come to fruition in their careers, it will be increasingly important to curb business activities and externalizations that may hurt the environment. These are the economic risks explained by Professor Okolo: "This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business." Moreover, it can be

3922-484: The following: In many cases, it plays a crucial role. It is truly impossible to gain an understanding of a culture's buying habits without first taking the time to understand the culture. Examples of the benefit of understanding local culture include the following: The international business standards focus on the following: By focusing on these, students will gain a better understanding of Political economy . These are tools that would help future business people bridge

3996-433: The future of commerce on a worldwide scale. To conduct business overseas, multinational companies need to bridge separate national markets into one global marketplace. There are two macro-scale factors that underline the trend of greater globalization. The first consists of eliminating barriers to make cross-border trade easier (e.g. free flow of goods and services, and capital, referred to as " free trade "). The second

4070-682: The global withdrawal of the International Herald Tribune as a newspaper brand and its replacement with the International New York Times . International business International business involves cross-border transactions of goods and services between two or more countries. Transactions of economic resources include capital, skills, and people for the purpose of the international production of physical goods and services such as finance, banking, insurance, and construction. International business

4144-540: The improvement of transportation systems over time. In the Middle Ages, long-distance and large-scale commerce was still limited within continents. Banking systems developed in medieval Europe, facilitating financial transactions across national boundaries. Markets became a feature of town life, and were regulated by town authorities. With the advent of the age of exploration and oceangoing ships, commerce took an international, trans-continental stature. Currently

4218-487: The launch of the New Delhi edition on 14 April 2009, Financial Chronicle completed its launch objective of five-city simultaneous publication within its first year. Financial Chronicle ' s e-paper was launched midnight of 15–16 April 2008. This makes FC the first paper to be launched electronically on the internet before its print launch. FC began its journey five days-a-week, Monday through Friday. It launched

4292-512: The mid-20th century, the adoption of standardized shipping containers facilitated seamless and efficient intermodal freight transport , leading to a surge in international trade. By the century's end, developing countries saw their share in world trade rise from a quarter to a third. 21st century commerce is increasingly technology-driven (see e-commerce ), globalized , intricately regulated , ethically responsible and sustainability -focused, with multilateral economic integrations (like

4366-422: The motivations for FDI. According to Hymer, there are two main determinants of FDI; where an imperfect market structure is the key element. The first is the firm-specific advantages which are developed at the specific companies home country and, profitably, used in the foreign country. The second determinant is the removal of control where Hymer wrote: "When firms are interconnected, they compete in selling in

4440-422: The multinational enterprise. His OLI paradigm, in particular, remains as the predominant theoretical contribution to study international business topics. Hymer and Dunning are considered founders of international business as a specialist field of study . The conduct of international operations depends on a company's objectives and the means with which they carry them out. The operations affect and are affected by

4514-411: The outdated existing technology, [the fact that] the result may create a dangerous effect in doing business in the international arena." Companies that establish a subsidiary or factory abroad need to be conscious about the externalizations they will produce, as some may have negative effects such as noise or pollution . This may cause aggravation to the people living there, which in turn can lead to

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4588-412: The physical and societal factors and the competitive environment . All firms that want to go international have one goal in common; the desire to increase their respective economic values when engaging in international trade transactions. To accomplish this goal, each firm must develop its individual strategy and approach to maximize value , lower costs, and increase profits. A firm's value creation

4662-420: The principal factors that give rise to commercial exchanges. Commerce consists of trade and aids to trade (i.e. auxiliary commercial services) taking place along the entire supply chain . Trade is the exchange of goods (including raw materials , intermediate and finished goods ) and services between buyers and sellers in return for an agreed-upon price at traditional (or online ) marketplaces . It

4736-875: The principle of comparative advantage, wherein countries specialize in producing goods and services they can produce most efficiently. This specialization fosters efficiency, leading to optimal resource allocation and higher overall productivity. Moreover, international business fosters cultural exchange and understanding by promoting interactions between people of diverse backgrounds. However, it also poses challenges, such as navigating complex regulatory frameworks, cultural differences, and geopolitical tensions. Effective international business strategies require astute market analysis, risk assessment, and adaptation to local customs and preferences. The role of technology cannot be overstated, as advancements in communication and transportation have drastically reduced barriers to entry and expanded market reach. Additionally, international business plays

4810-402: The production costs to not waste time and money. If the expenditures and costs are controlled, it will create an efficient production and help the internationalization. Operational risk is the prospect of loss resulting from inadequate or failed procedures, systems or policies; employee errors, systems failure, fraud or other criminal activity, or any event that disrupts business processes. How

4884-681: The reliability of international trans-oceanic shipping and mailing systems and the facility of the Internet has made commerce possible between cities, regions and countries situated anywhere in the world. In the 21st century, Internet-based electronic commerce (where financial information is transferred over Internet), and its subcategories such as wireless mobile commerce and social network -based social commerce have been and continue to get adopted widely. Legislative bodies and ministries or ministerial departments of commerce regulate, promote and manage domestic and foreign commercial activities within

4958-592: The same market or one of the firms may sell to the other," and because of this "it may be profitable to substitute centralized decision-making for decentralized decision-making ". Hymer's second phase is his neoclassical article in 1968 that includes a theory of internationalization and explains the direction of growth of the international expansion of firms. In a later stage, Hymer went to a more Marxist approach where he explains that MNC as agents of an international capitalist system causing conflict and contradictions, causing among other things inequality and poverty in

5032-468: The services of commercial agents and agencies. In other words, commerce encompasses a wide array of political, economical, technological, logistical, legal, regulatory, social and cultural aspects of trade on a large scale. From a marketing perspective, commerce creates time and place utility by making goods and services available to the customers at the right place and at the right time by changing their location or placement. Described in this manner, trade

5106-515: The setting in which they are operating and the strategy they are pursuing. Once a firm decides to enter a foreign market, it must decide on a mode of entry. There are six different modes to enter a foreign market, and each mode has pros and cons that are associated with it. The firm must decide which mode is most appropriately aligned with the company's goals and objectives. The six different modes of entry are exporting, turnkey projects , licensing , franchising , establishing joint ventures with

5180-470: The smooth, unhindered distribution and transfer of goods and services on a substantial scale and at the right time, place, quantity, quality and price through various channels from the original producers to the final consumers within local, regional, national or international economies. The diversity in the distribution of natural resources , differences of human needs and wants , and division of labour along with comparative advantage are

5254-566: The society while mitigating its drawbacks remains vital for policymakers , businesses and other stakeholders . Commerce traces its origins to ancient localized barter systems, leading to the establishment of periodic marketplaces, and culminating in the development of currencies for efficient trade. In medieval times, trade routes (like the Silk Road ) with pivotal commercial hubs (like Venice ) connected regions and continents, enabling long-distance trade and cultural exchange . From

5328-413: The two types of investments, Hymer distinguished financial investment from direct investment. The main distinguishing feature was control. Portfolio investment is a more passive approach, and the main purpose is financial gain , whereas in foreign direct investment a firm has control over the operations abroad. So, the traditional theory of investment based on differential interest rates does not explain

5402-1414: The umbrella of trade. On the other hand, auxiliary commercial activities (aids to trade) which can facilitate trade include commercial intermediaries , banking , credit financing and related services, transportation , packaging , warehousing , communication , advertising and insurance . Their purpose is to remove hindrances related to direct personal contact, payments , savings , funding , separation of place and time, product protection and preservation, knowledge and risk . The broader framework of commerce incorporates additional elements and factors such as laws and regulations (including intellectual property rights and antitrust laws ), policies , tariffs and trade barriers , consumers and consumer trends , producers and production strategies, supply chains and their management , financial transactions for ordinary and extraordinary business activities, market dynamics (including supply and demand ), technological innovation , competition and entrepreneurship , trade agreements , multinational corporations and small and medium-sized enterprisess (SMEs), and macroeconomic factors (like economic stability ). Commerce drives economic growth , development and prosperity , promotes regional and international interdependence , fosters cultural exchange , creates jobs , improves people's standard of living by giving them access to

5476-431: The world. Hymer is the "father of the theory of MNEs", and explains the motivations for companies doing direct business abroad. Among modern economic theories of multinationals and foreign direct investment are internalization theory and John Dunning's OLI paradigm (standing for ownership, location and internationalization ). Dunning was widely known for his research in economics of international direct investment and

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