INTERNATIONAL BUSINESS ECONOMICS ACTIVITIES AND PERFORMANCE

International Business Economics activities and performance

Chapter 1: Introduction

Background

When doing international enterprise there are lots of things to consider. For instance language of other country can cause certain issues. It is unrealistic to do business if you cannot communicate. You should learn about other countries social, culture, economics, legal, and political values. Social tendencies have to do with learning, entertainment, population, and language. Culture agreements with religion, paid work, beliefs, informality, punctuality, and equality. (Baron and Kenny 1986:1173)

The economy basically changes with world events going on at that time. The legal scheme explains how certain nations deal with problems in their country. The court scheme varies all through each country. Politics describe government in the country. All of these should be considered thoroughly when doing international business. (Bruque and Moyano 2007a:241)

Problem statement

To study different factors relating to international business economics with the Korean based perspective.

Purpose

To see difference between internet-based and traditional small firms in Korea, Japan. Also identify important factors in that.

Rationale of study

With the relatively small investment, companies can achieve remarkable benefits. Indeed, leaders in e-commerce have achieved the 41% improvement in cycle times; 10% reductions in staff costs and increased returns on investment of up to 13-fold. Although e-commerce appears to be an attractive option for both large and small companies, take up by smaller companies has been much more limited. (Carayannis and Turner 2004:847)

Aims and objectives

The problems faced by international small firms. Is there the huge difference in business of traditional small firms and internet based firms?

Significance of study

Thus, it seems that adoption of e-commerce may present specific trials for lesser businesses but this is not well researched. This seems to be particularly so for e-trade, aspect of business to business e-commerce which involves international transactions. (Bhattacherjee and Prekumar 2004:229)

Research questions

What are problems faced by international small firms?

Is there the huge difference in business of traditional small firms and internet based firms?

Chapter 2: Literature Review

In Korea, e-trading began around 1990 in response to potential to reduce costs, improve marketing and general simplification of business processes. Korea is noted for “spectacular” levels of adoption of ICT in general. Currently, the number of Korean SMEs use electronic data interchange (EDI) and internet for conducting business. Moreover, the recent report indicates that Korea is relatively advanced, by international comparison, in some aspects of e-commerce. But despite competitive advantages compared with traditional trade (paper based trade) transactions, fewer Korean SMEs engage in e-trade than might be expected. (Bruque and Moyano 2007a:241)

This concurs with findings for Spain. The most common explanations for this include the lack of e-trade systems and the shortage of funds within SMEs. However, the number of e-trading systems emerged in early days of adoption of e-trading but are no longer in use. This has been attributed to difficulties encountered in their application. So it appears that ease of use of systems may be an important factor. (Calisir and Calisir 2004:505)

Japan picked up on our school system and decided to change their school system to ...