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Many companies have taken their businesses and ventured into the international business world. Seeking to expand their companies bottom line, many companies have moved their plants to various countries throughout the world. For those seeking to make this idea your reality, there are several things one must consider. The most important thing is to get a broad and extensive understanding of International Business Law. This is the standardization of fundamental business practices throughout the world. This process is believed to promote global interdependence and transcends national states by establishing economic growth worldwide. International business law was established as a result of the United States victory in World War II. After winning World War II,the United States went about establishing the process of standardizing business practices worldwide. The American trading system put several legal standards into motion hoping to create a global regime of free trade with the U.S currency being the base dollar.

At its core, international business law is a issue of self interest. By having a single legal framework to govern international transactions, significant amounts of money has been saved. If a company had to constantly modify their functioning based on individual states, the cost would be too high and doing business overseas would be pointless. International business law has provided several avenues for profiteers to navigate through its legislation. International business law, at its root, is about transcending the nation state as the only source of legal authority. International business has become significantly easier and more profitable because of two reasons. First, technological developments have made global communication and transportation relatively quick and convenient. Second, the annihilation of a substantial part of the communist world. This has opened up many of the world’s economies to private business. Generally, capital is the most mobile of all the factors of production and can move relatively easily from one nation to another. Other factors of production, such as land and labor, either do not move or are less mobile. The result is, where capital is available in one country, it may also be used to invest in other countries. This allows the savvy businessman to take advantage of another nations’ land or labor.

International business differs from domestic business primarily because of the constant environment changes afforded by nation to nation business. In business countries are divided into three main categories: the more developed, the less developed, and newly emerging economies. Each category presents a different challenge economically, as each nation has significantly different financial resources. These distinctions are based of gross domestic product per capita(GPD/capita). It should be noted that international business law is vast and extensive and should approached accordingly. However, once a reasonable understanding is acquired the possible financial payoffs priceless.

It is not uncommon for many small business owners to shy away from expansionary decisions, or even think of going public. Why? Most of these business owners are scared of the outcome of growing large, and often attribute this fear to the “high risks involved.” Well, the whole idea of business is risk taking, so why indulge in it in the first place, if you choose to give up so soon? In fact, the truth is, small private businesses and partnerships tend to be at a higher risk of failure. For instance, in the event of a sudden downturn in business activities in a certain industry, larger public companies can easily diversify their resources, and invest in other sectors that are more promising, while small businesses would definitely crumble if such periods become severe and persistent, due to lack of funds. The point here is; the benefits of being a public company are much more than to what meets the eye.

Public companies are those that have the right to request for funds from the general public, usually in the form of selling shares. This is possible when the company is being listed on the stock exchange market. There are many advantages of being a public company:

When a company goes public, it shows a sign of maturity and responsibility. Public companies are liable to many shareholders who are equally owners and share holders at the same time. This results to some level of consciousness in the companies dealings, and the company is compelled to maintain certain high standards in their operations, which in tend to boosts their productivity and returns.

Public companies tend to build a lot of trust with its clientele. The general ideology is, if investors can trust the company with their finances, then the consumers can equally count on them for quality products.

Most companies who grow public tend to realize a drastic reduction in cost. This is because they benefit from larger trade and cash discounts on their purchases, since they have the ability to make larger orders and pay promptly, due to more available funds.

Due to easily accessible capital, public companies can employ very qualified and skilled executives for their companies, who have the potential of using their skills and experience to fetch more returns on the companies’ investments.

Another benefit of being on the stock market is that the cost of capital is relatively lower than those offered at banks, and you do not need to surrender your assets as collateral before getting credit. In fact, it is not compulsory to pay dividend on certain shares, as the holder of such shares can sell them when their value increases (capital gain).