Services
Intangible services such as IT services easily flow over borders and are relatively easy to sell on an international basis. Other services such as banking would be easy to sell over borders with the exception of complex regulations that make it more difficult.Import
Importing products for sale in your domestic market. For example, a supermarket that uses import wholesalers to offer customers fruits and vegetables from every corner of the world.Export
Exporting a product to foreign markets with the help of intermediaries such as wholesalers.Channel Sales
Developing specific sales partnerships where you may be able to influence the customer experience. For example, a software company in Germany that partners with an IT consulting company in Japan to sell its software and services.Value Added Reseller
Adding something to a foreign product or service and reselling it. For example, selling a foreign software product with local support and customization.Transportation
The transport of people and goods such as an airline.Logistics
Services that handle the complexities of moving goods including aspects such as transportation, warehousing and customs.Tourism & Hospitality
Travel services and the hospitality industry that rely on tourism.Entertainment
The entertainment industry such as movies and music that can be sold across borders.Sports
International sporting events and the export of domestic sporting events and related merchandise.Cultural Economy
Cultural industries such as wine making that draw much international interest to a region.Digital Goods
Digital goods such as a downloadable game.Licensing & Franchising
Licensing property rights or franchising a business on an international basis. For example, an American movie studio that licenses its trademarks to toy companies in Japan.Multinationals
Firms that directly operate in multiple countries such as a solar panel manufacturer that produces its goods in three countries and sells them directly in six regions.Primary Industry
Primary industries produce commodities such as gold or corn. Large global markets exist for these products such that they are often exported. For example, a farmer in America might export most of their output such that they benefit from trade agreements with large markets for their product.Manufacturing
Manufacturing benefits from economies of scale such that selling into multiple markets allows the manufacturer to lower unit costs and potentially dominate a market. Niche manufacturers may depend on international markets because the local market for their product may be extremely small.Traditional Economy
Traditional goods such as crafts often largely depend on exports or tourists. For example, a traditional tea farm in Japan that makes most of its revenue by offering tours and classes to foreign tourists.Ecommerce
Ecommerce companies that operate in multiple countries or that offer international shipping at a competitive rate such that they generate international sales. Likewise, independent ecommerce sellers on large platforms are often engaged in import/export.Arbitrage
Arbitrage is the practice of taking advantage of price differences in markets including financial markets and the markets for goods. For example, an investment bank that trades the difference in price for the same security trading in London, New York and Toronto.Outsourcing
Outsourcing such as a designer of t-shirts in France that outsources manufacturing to a firm in Turkey.Education & Training
Education and training easily flows over borders. Likewise, it is extremely common for nations to offer student visas such that schools and educational institutions are often quite international.Research & Development
Partnerships to develop knowledge or elements of products and services. For example, an American electronics firm that partners with a South Korean automotive firm to develop a battery technology that will benefit both companies.| Overview: Global Business | ||
Type | ||
Definition | Any business model that heavily relies on customers, partners or operations in foreign jurisdictions. | |
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