International Business World,- Understanding International Business is a business whose activities go beyond the national borders. This definition includes not only international trade and pemanufakturan abroad, but also a growing service industry in areas such as transport, tourism, banking, advertising, construction, retail trade, wholesale and mass communication.
International business is business activities carried on between countries with each other State. Business consists of various types, and, as a result, businesses can be grouped in different ways.
That's the reason the fulfillment of daily needs, human beings can not be separated from trading activities. People who play an important role in these activities is a merchant. They are the ones in charge to distribute goods to consumers.
Trading activities today are not only limited among the population in the country. Trading activities have started venturing into the world of international or interstate. Activities of exchange of goods and services from one country to another is then referred to as international business.
As mentioned above that international business is the business activities carried transcend national boundaries. This is a business transaction such as international business transactions (International Trade). Business transactions were done by a company in a country with other companies or individuals in other countries called the International Marketing or International Marketing. International marketing differs from International Business, namely:
1. International Trade (International Trade)
In international trade transactions between countries is usually done in the traditional way, namely by way of export and import. With the export and import transactions that will arise between countries trade balance (balance of tread).
A State may have seraca trade surplus or deficit of the trade balance. The trade balance surplus indicate the circumstances in which the State has the value of exports is greater than the value of imports made from trading partner countries. With a trade balance surplus is then when the other circumstances constant then the cash inflows into the country will be bigger with the release of cash flow to the trading partner countries.
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The size of the flow of cash in and out between countries is called the balance of payments (balance of paymnets). If the balance of payments had a surplus, said that the country experienced a foreign exchange gain. Conversely, when the country experienced a deficit balance of trade then it means that the value of imports exceeds the value of exports that can be done with other countries. Thus, the country experienced a deficit balance of payments and face a reduction of country's foreign exchange.
2. International Marketing (International Marketing)
International marketing is the state of a company may engage in business transactions with other countries, other companies or the general public abroad. International business transactions is generally an attempt to market the production abroad.
In this case the employer will be free of trade barriers and tariffs because there is no trade transactions. By carrying out the production and marketing activities in a foreign country, then there is no export and import activities. The products are marketed may be goods and / or services.
This transaction can be done through:
- Licencing
- Franchising
- Management Contracting
- Marketing in Home Country by Host Country
- Joint Venturing
- Multinational Coporation (MNC)
All forms of international transactions require the payment transaction is often called fee. Country (Home Country) have to pay, while the sender (Host Country) acquire the fee. Understanding international trade with international companies often considered to be the same, but different. The main difference lies in the treatment where internasinol trading done by the state, while international marketing is an activity undertaken by a company that sets up business activities are more active, more progressive than international trade.
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