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Business in A Borderless World

International business involves the purchase, sale, and trade of goods and services across national boundaries. It is influenced by political conditions and technological developments. Many companies engage in international business due to lack of domestic market space or to take advantage of absolute or comparative advantages in other countries. Exporting and importing differ in value based on currency exchange rates, and a trade surplus occurs when a country exports more than it imports. Developing a successful international business requires understanding factors like economic conditions, infrastructure, exchange rates, laws, tariffs, social and cultural differences between countries, and implementing an effective global business strategy.

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1K views2 pages

Business in A Borderless World

International business involves the purchase, sale, and trade of goods and services across national boundaries. It is influenced by political conditions and technological developments. Many companies engage in international business due to lack of domestic market space or to take advantage of absolute or comparative advantages in other countries. Exporting and importing differ in value based on currency exchange rates, and a trade surplus occurs when a country exports more than it imports. Developing a successful international business requires understanding factors like economic conditions, infrastructure, exchange rates, laws, tariffs, social and cultural differences between countries, and implementing an effective global business strategy.

Uploaded by

Steven Boo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Business in a Borderless World

International business is a business method that involves two or more parties in


carrying out the purchase, sale, and trade between the goods and services to other countries
that cross national boundaries. The role of international business is influenced by political
conditions and technological developments. Many companies that sell goods and services out
of the country or limited in his own country, because of lack of space to the global business.
International business affect the economy of the countries are involved. International business
should consider the global economic, such nation trade, exports and imports, and the balance
of trade.
International business has two advantages, it's Excellence absolute and comparative
advantage. Absolute advantage is a situation when a country from the manufacturer is the
only producer of providing a particular item and the most efficient of the other items.
Comparative advantage is the basis of most international trade, supply products more
efficiently and at lower cost. In the international trade, which is called export and import.
Exporting is the sale of goods and services from domestic to overseas. Importing is the
purchase of goods and services from abroad into the country. Export and import have a
difference of value which determined by the value of the currency in each country. So there
must be a positive balance of trade surplus or trade of a country that happens when a country
that imports less product than exports.
The balance of trade was influenced by the trade deficit between the difference value
of exports and imports. When the percentage export of goods a larger than the import, it will
be benefit the balance of trade, or from a country's the trade surplus. The difference between
the flow of incoming money and outcome money of a country its the balance of payments. In
the building a business, managers should consider the some of factor that affect the
development of the business. The important point to understand is about the basic of
economy, such as economic development, infrastructure, and the exchange rate. Development
of a business must be determine the proper infrastructure and worthy. Physical facilities that
can support the economic activities of a business so that it runs smoothly, such as highways,
factories, electricity, communication systems, and other facilities.
A company that was founded to competing in the international market have to
compete with companies from other countries that refers to rules of different laws , whether it
is the law of his own nation, international law, and the law of another country to be
addressed. Trade restrictions applicable in the international of trade for the purpose of
changing the political of climate in the export or import tariffs. import tariff is given by the
state tax on the products to be imported into another country. A fixed rate is a specific amount
of money charged to every unit of products that brought into the country, while the ad
valorem tariff is based on the value of the item itself.
Talking about the social and cultures barriers, a company that will market the products
and to get the consumer from variety of the country must be understand languages, behaviors,
cultures, and tastes of the target market of the country. Marketing spelled out has been
successfully must be create an attractive and sensitive messages that can be demand by

customers. Supply of products and promotion through advertisements must be relevant with
the culture of the customers.
The level of resources and effort can be increased in accordance with the international
trade. To increase international business, perusahhan must perform export and import, trading
companies, licensing and franchising, contract manufacturing and other business systems.
Trading company is a company that buys goods or services in the company of other countries
and sold them to buyers in other countries. License is a form of trade agreements in which the
parent company or companies that give license to use the company name, product, brand, raw
materials, and production processes to other companies. Franchising is a form of licensing of
the parent company to other companies to provide names, logos, methods of operation,
advertising, products, and other elements with financial rewards agreements and agreements
to conduct business in accordance with the standards of the company's operations. Contract
manufacturing is a condition in which a foreign company to hire another company to produce
a certain volume of product or income with a domestic company name.
International business strategies is a business planning within the global economy
needs people which understanding the business to analyze the economic, cultural reality of
the law, political, and social aspects of the countries in which they will operate its business.
To develop international business strategy, companies have to approach traditionally used
multinational strategy, to adjust their preferred product standardization, promotional media as
much as possible, promotion and distribution of products that culturally acceptable,
technology, and regionally. Managers must be able to manage the challenges of global
business that can fulfill the challenge to create and applying the the most effective of business
strategies and sensitive to the global market.

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