international busness

As mentioned above that international business is the business activities carried on past the limits - the limits of a State. Business transactions such as this is an international business transaction. As for business transactions conducted by a State to another State which is often referred to as International Business (International Trade). On the other hand it's a business transaction conducted by a firm in the State sutu with other companies or individuals in other countries called the International Marketing or International Marketing. International marketing is usually interpreted as Business International, although there are basically two senses. So we can distinguish the two International Business transactions are:

a. International Trade (International Trade)In terms of international trade which is an inter-state transactions is usually done in the traditional way is by way of exports and imports. Given the export and import transactions that will arise "BALANCE OF TRADE BETWEEN STATE" or "BALANCE OF TRADE". A State may have a surplus balance of trade or balance of trade devisit. Balance of trade surplus indicates the circumstances in which that State has a greater value of exports compared with imports made from the State of its trading partners. With a trade balance surplus is then when the other conditions constant, the flow of cash coming into the country it will be bigger with the release of cash flow to its trading partners such State. The size of the flow of cash into and out between the State is often referred to as the "BALANCE OF PAYMENTS" or "BALANCE OF PAYMENTS". In this case the balance of payments surplus is often also said that the country is experiencing ADDED FOREIGN EXCHANGE STATE. Conversely, if the State was experiencing devisit balance of trade then it means the value of imports exceeds the value of exports that can be done by other State. Thus, the State will experience devisit balance of payments and will face REDUCTION OF FOREIGN EXCHANGE.
b. International Marketing (International Marketing)International marketing is often referred to as International Business (International Busines) is a state where a company can engage in a business transaction with another State, another company or the public abroad. This international business transactions in general is an attempt to market their products abroad. In this kind of thing then the entrepreneur will be free of trade barriers and tariffs because there is no export and import transactions. With the inclusion of direct and carry out production and marketing activities in a foreign country does not happen then import export activities. Products are marketed not only in goods but can also be the service. International business transactions of this kind can be reached by various ways including:- Licencing- Franchising- Management Contracting- Marketing in Home Country by Host Country- Joint Venturing- Multinational Coporation (MNC)All of the above forms of international transactions will require payment transactions are often referred to as the Fee. In that case the State or the Home Country must pay while the sender or the Host Country will obtain the fee payment.Understanding of international trade with international companies often confused or often considered to be the same, but as we see in the above description it is different. The main difference lies in treatment which internasinol trade conducted by the State while the international marketing is an activity undertaken by the company. Besides, international marketing determine a more active business activities as well as more progressive than in international trade.
REASONS FOR IMPLEMENTING INTERNATIONAL BUSINESSseveral reasons to implement an international business such as:
1. Specialization among nations - nationsIn connection with certain advantages or strengths and weaknesses it is a State should determine the strategic choice to produce a strategic commodity that is:a. Utilizing the maximum force that was really the most superior so that it can produce it more efficiently and the least expensive among the other countries.b. Focuses on commodities that have the smallest weakness among other countriesc. Concentrate his attention to producing or mastering a commodity has a weakness for the country's highest
· Excellence absolute (absolute advantage)A country can be said to have an absolute advantage if the country holds a monopoly in production and trade of these products. This will be achieved if there is no other country that can produce the products that the country is the only producing country that is generally caused due to its natural condition, such as mining, plantation, forestry, agriculture and so on. Besides natural conditions, an absolute advantage can also be obtained from a country that is able to produce a commodity is the cheapest among other countries. The advantages of this kind generally will not last long because of advances in technology will quickly overcome the production method is more efficient and less expensive fare.
· Comparative advantage (comparative advantage)The concept of comparative advantage is a more realistic concept and is widely available in international business. That is a situation where a country has a higher ability to offer such products as compared with other countries. Higher ability in offering a product that can be embodied in various forms, namely:a. Fee or a lower bid price.b. Quality is superior although more expensive.c. Continuity of supply (supply) the better.d. Business relations and political stability is good.e. Availability of better supporting facilities such as exercise or transportation facilities.A state will generally concentrate to produce and export commodities which he has a comparative advantage is best and then import the commodity in which they have comparative advantage of the worst or greatest weakness. The concept will be able to look with clear and evident when we try to examine the balance of trade of our country (Indonesia) for example. From the trade balance that we can see what our commodity exports are commodities which have a comparative advantage for Indonesia and we import our comparative advantage is the weakest.
2. Consideration of business developmentCompanies that have engaged in a particular field in a business in the country often and try to develop a market abroad. This will cause some pertimbangang why a company that encourages conduct or plunge into the business internasiional:a. Utilizing the capacity of idle machines that are still owned by a companyb. Such products in the country has experienced kejenihan level and may even have experienced stages of decline (decline phase) while abroad, are being developed (growth)c. Competition is happening in the country sometimes are even more sharply than just competition in the product overseasd. Develop new markets (abroad) is an action that is easier than developing new products (domestically)e. The potential international market in general is much broader than the domestic market
ENTERING PHASE-PHASE IN INTERNATIONAL BUSINESSCompanies that entered the international business in general engage or involve themselves gradually from the simplest steps that do not contain the risk to stage the most complex and risky business that is very high. The stage is in chronological order are as follows:1. Export incidental2. Export Active3. Sales License4. Franchising5. Marketing Abroad6. Production and Marketing in Foreign Countries
EXPORT INCIDENTAL (Incident At EXPORT)In order to enter into the world of international business of a company generally starts from an engagement of the earliest is by exporting incidental. In this early stage generally occurs at the time of the arrival of foreigners in our country then he bought the stuff and then we have to send it to a foreign country.
EXPORT ACTIVE (ACTIVE EXPORT)Earlier stages it can then continue to grow and then terjalinlah routine business relationships and transactions are continuous and even more and will be more active. Activity relationships in business transactions generally is marked by the growing number and types of international trade in these commodities. In this active phase of their own domestic companies began actively to carry out management on the transaction. Unlike the initial stage where the entrepreneur is only a passive act. Therefore in this stage are often referred to as the stage of "active export", while the first stage was called the stage of purchase or the "Purchasing".
License sales (Licensing)The next stage is the stage Iisensi sales. In this stage the State entrants to license or brand of products to recipient countries. In the stage which is the only brand sold or licensed, so that recipient countries can conduct a fairly extensive management to marketing and production process including raw materials and equipment. For the purposes of license usage is then the company and the recipient country must pay a fee for those licenses to foreign companies.
FranchisingThe next stage is a more active stage of the company in a country not only sell or license its brand name alone will but complete with all its attributes including equipment, production processes, recipes mix of production processes, quality control, quality control of raw materials and finished goods , as well as form the service. This method is often known as a form of "Franchising". In terms of this Franchise, the company that received referred to as "Franchisee" while giving the company referred to as "Franchisor". This form is generally successful for certain types of business such as food, restaurants, supermarkets, fitness centers and so on.
ENTERING THE OBSTACLES IN INTERNATIONAL BUSINESSConducting international business course will have many more obstacles than in the domestic market. Other countries of course will have different interests that often inhibit terlaksannya kai international business transactions. Besides, customs or culture of other countries will of course differ from their own country. Therefore, there are several obstacles in the international business, namely:1. Trade restrictions and tariff duties2. Language differences, cultural social / cultural3. Political conditions and legal / regulatory4. Operational Constraints
DIFFERENCES IN LANGUAGE, CULTURE AND SOCIAL / CULTURALThe difference in language is often an obstacle to smooth international business, this is because language is a vital communication tool both spoken and written language. Without proper communication it is difficult for a business relationship can take place with Iancar. Barriers of language at this time of diminishing thanks to the international language is the language of England. Despite this difference of language remains an obstacle to be aware and well-studied as an expression in a particular language can not be expressed simply (letterlijk) with the same word in another language. Even a trademark or product name can have another meaning and very negative for a particular country. For example, a Chevrolet plant that gives the name of a type of car with the name "Chevrolet's Nova", on the country Spain said "No Va" means "can not run". Therefore it is very difficult to market the product in the Spanish state.Differences socio-cultural conditions is a problem that must be observed also in doing international business. For example, the color of a product or the packaging should be careful because a certain color in a country has a specific meaning in another country can be meaningful to the contrary. Cultural differences or customs also noteworthy. For instance the Japanese have a habit not to go near her when bought at the supermarket, so this brings the consequence that the goods in the form of male cosmetics tools should not be placed adjacent to the cosmetics lady, because buyers will not be approached by men.
BARRIERS TO POLITICAL, LEGAL and legislationLack of good political relations between one country to another will also result in limited business relationship of both countries. As an extreme example of American conduct of commodity trade embargo with Communist countries.Provisions of Law or Regulations applicable laws in a country sometimes also limit the course of international business. For example, Arab countries banned items containing pork meat or oil.More and that's the law in his own country was also able to limit the course of international business, for example, Indonesia banned the export of raw or semi-finished leather, as well as raw and semi-finished rattan, and so on.
OPERATIONAL CONSTRAINTSBarriers to international trade or other business is in the form of operational problems which transportation or transport of goods traded from one country to another country. Transportation is often difficult to do because between the two countries do not have a track regular cruise ships. This will result in that the cost of transport or ship expedition to the queue will be very expensive. The high cost of transport was due to carriers other than state that the ship serves only one country that usually last only expensive, then the return of the ship dati destination country will be empty. Empty boat trip on the ocean would be very dangerous for the safety of the ship itself.
MULTINATIONAL COMPANIESMultinational corporation is essentially a company that conducts internationally or in other words, their operation in several countries. Companies like this are often called Multinational Corporations usually abbreviated MNC. Globalization is sweeping the world at this time where the condition that no single country in the world which is free and unattainable by the influence of other countries. Each State at any time will always be affected by actions taken by other States. This can happen because at this moment we are in the century of communication, so in a very fast and even at the same time we can find an event that happens in every country anywhere in the world.From the state that it is as if there are no more boundaries between states with one state to another. Everyday life becomes more equal. With the trend that occurs at this point that the demand or needs of people everywhere in the world is approaching the same thing. The need for consumer goods or for everyday life tend not to differ between one country to another country. The need for toilet soap, laundry soap, stationery, office equipment, clothing, home furnishings as well and so is not much different between the people of Indonesia and the Philippines, Japan, Korea, Arab atupun in Europe and America.The tendency for the similarities is what encourages companies to operate in the International Company will therefore try to find a place the plant in order to produce those goods most cheaply and then market it all over the world so it would be more economical and has a higher competitiveness. In addition, the limits of export-import between countries encourage a company to produce just the stuff in the country itself and then sell the country as well although the owner is from abroad. That way the problem of export-import restrictions no longer apply to him. Many examples of multinational companies are for example: Coca Cola, Colgate, Johnson & Johnson, IBM, General Electric, Mitzubishi Electric, Toyota, Philips from the Netherlands, from Switzerland's Nestle, Unilever of the Netherlands and Britain, Germany dati Bayer, BASF is also from Germany , Ciba of Switzerland and so on.