International business as a discipline is relatively new, but international business as a business practice is a longstanding event. In fact, before Christ, Venetian and Greek merchants sent representatives abroad to sell their goods.
In 1600, the British East India Company - a newly formed trading company - established overseas branches in Asia. At the same time, a number of Dutch companies formed in 1590 opened travel routes to the east to form the Dute East India Company and also opened branch offices in Asia.
American colonial traders began operating on the same model in the 1700s. Examples of American foreign direct investment which were originally British plantations formed by the Colt Fire Arms and Ford (vulcanized rubber) established before the civil war. However, both operations failed only a few years later.
International Business Companies in the Past
History records: The first American company to successfully enter overseas production was a factory founded in Scotland by Singer Sewing Machine in 1868. By 1880, Singer had become a world organization with exceptional sales and several manufacturing plants abroad.
Other companies soon followed and in 1914 at least 37 American companies had production facilities in two or three locations abroad. Among the companies that have been established abroad, one of them is the National Cash Register and Burroughs with manufacturing plants in Europe; Parke-Davis with a factory near London in 1920; and Ford Motor Company which has assembly plants or distribution outlets in 14 countries.
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| General Motors and Chrysler soon followed so that in the 1920s the three companies had large overseas operations. Interestingly and quite contrary to the situation today, in the 1920s all cars sold in Japan were made in the United States by Ford and General Motor. |
They sent it to Japan in the form of knocked-down to be assembled on site. Another investor who initially invested abroad was General Electric, which in 1919 had factories in Europe, Latin America and Asia. Other famous American companies in Europe at that time were Alcoa, American Tobaco, Armor, Coca-Cola, Eastman Kodak, Gillete, Quartker Oats, Westerm Electric, and Westinghouse.
Interestingly, American companies that move abroad cause concern among Americans, just as they are caused by Japanese investment in the United States today. One writer argues that inflation continues without stopping and without noise or shadow in 500 industries at once. From shaving soap to electric motors and from women to telephones, America has completely cut down this field.
History European Companies
Although American companies have so far been the largest foreign investors, European companies are also moving abroad. Friedrich Bayer was interested in buying a factory in New York in 1865, two years after establishing its factory in Germany. Then, due to high import taxes in his foreign markets, he moved forward to set up factories in Russia (1876) and France (1882).
Bayer, which is now one of the four largest chemical companies in the world with sales of $ 32 billion in 1996, has 350 companies operating in 140 countries. After losing the right to use the Bayer name in North America as part of the revision of World War I (PD) Germany, the company regained its rights in 1995 by buying over-the-counter drug division from Kodak which had become a factory and owner of aspirin Bayer.
International Business History Tables
| BC | Venetian and Greek traders sent representatives abroad to sell their products (First time international business history) |
| 1600 |
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| 1700 | American colonial traders began operating on the same model. 1865 Bayer Germany buys a factory in New York. |
| 1868 | The first American company to successfully enter foreign production, namely the establishment of the Singer Sewing Machine factory in Scotland. |
| 1876 | Bayer sets up factory in Russia. |
| 1880 | Singer is a global organization with exceptional overseas sales and several manufacturing plants abroad. |
| 1882 | Bayer sets up factory in France. |
| 1908 | Next history: Bayer sets up factory in Belgium. |
| 1914 | At least 37 American companies in history have production facilities in two or three locations abroad (including the National Cash Register and Burroughs with factories in Europe; Parke Davis with factories in London, and Ford Motor Company has assembly plants or distribution outlets in 14 countries) . |
| 1919 | General Electric began investing abroad. |
| 1920 | General Motor and Chrysler conduct operations abroad. |
Although the business of international companies had existed before World War I, it was only in these last years that they became the object of much discussion and investigation, especially with regard to the globalization that continued to increase in their operations (Rusdin, 2002).