Understanding International Business is a business whose activities pass the borders of the country. This definition includes not only international trade and overseas manufacturing, but also a thriving service industry in areas such as transportation, tourism, banking, advertising, construction, retail trade, large trade and mass communications

International Business High

As mentioned above, international business is a business activity that is conducted within the boundaries of a State. Business transactions like these are international business transactions. The business transactions conducted by a State with other countries are often referred to as International Business. On the other hand the business transaction is done by a company in a country with other companies or individuals in other countries called International Marketing or International Marketing. This international marketing is usually defined as International Business, although there are basically two meanings. So we can distinguish the existence of two International Business transactions are:

  1. International Trade
    In the case of international trade which is an inter-state transaction it is usually done in the traditional way that is by way of export and import. With the export and import transactions it will arise “Balance of trade in state. A State may have a Trade Balance Surplus or its Trade Account Deficit. The surplus trade balance shows the situation in which the country has a higher export value compared to the import value made from its trading partner country.
  2. Marketing International (International Marketing)
    International marketing is often referred to as International Business (International Business) is a condition where a company can engage in a business transaction with other countries, other companies or the general public abroad. This international business transaction is generally an attempt to market overseas production. In this case the entrepreneur will be free from trade barriers and import tariffs because there are no import export transactions

Reasons Implementing International Business

  • Specialization among nations
    In relation to certain advantages or strengths and weaknesses then a State must determine the strategic choice to produce a strategic commodity that is
  • Utilize as much as possible the power that turns out to be truly superior so as to produce it more efficiently and cheaper among other countries.
  • Focus on commodities that have the smallest weakness among other countries
  • Concentrate his attention to produce or master commodities that have the greatest weakness for his country