Multidisciplinary origin of International Business

Business studies draws heavily from the social sciences of economics, sociology, and psychology in its examinations of corporate, social, and individual behaviors. When the study of business goes beyond national borders, the conceptual foundations of international business extend to include the following areas of study.

  1. Political science is the study of politicians, political institutions, and their effects on business and society. International businesses must therefore routinely monitor political changes via elections, wars, and coups d’état. Governments also provide the legal frameworks that ultimately control business behaviors within their national borders.
  2. Anthropology is the study of the evolution of mankind in its various environments. A major key to understanding important emerging markets like India and China is appreciating how economic development changes affect business operations in rapidly industrializing markets.
  3. Economic development occurs as nations industrialize and grow economically. Understanding the economic and cultural development process requires insights from the anthropological, sociological, and economic development fields to illustrate the multifaceted nature of change as nation-states move from simple, self-sufficient societies to complex nation-states producing varieties of goods and services.
  4. Sociology is the study of group behaviors in society. As countries industrialize, gender roles change, and male-oriented (patriarchal) societies come under pressure as female contributions to societal well-being outside of the home are recognized.
  5. Religion is a primary determinant of behaviors and attitudes in all countries. In the developing world, religion tends to have profound effects on daily lives. It is difficult to understand the Middle East without significant knowledge of the Islamic (Muslim) faith Understanding world markets requires in-depth appreciations of the world’s major religions and their effects.
  6. Geography is a known quantity to national companies competing in their native markets. Geographic resource availability (minerals, agriculture) is a key shaper of national development. Topography and climate influence target markets (where populations reside); distribution (how to reach and service customers); and, in amore general sense, attitudes toward life (e.g., in severe climates or harsh terrains, where “Mother Nature” determines life’s outcomes).
  7. History’s contribution to world business is often underestimated by businesspeople whose major orientations are to the present and the future. Historical analysis, with its emphasis on how the past influences the present, is a key tool in interpreting and anticipating market behaviors and trends.

Last modified: Saturday, 9 October 2021, 4:14 AM