BUSINESS IN A BORDERLESS WORLD
BUSINESS IN A BORDERLESS WORLD
International business is the buying, selling and trading of goods and services across national boundaries. A company could be called international trader when they are involved in exporting and importing. Exporting refers to the sale of goods and services to foreign market. Sometimes, exporting take place through countertrade agreement that involve bartering products for other products instead of currency. Although a company exports its product directly, there is an agent that could help to handle international transaction for other firms. It is called export agent that has responsibility for storage and transportation in export process. Furthermore, importing is the purchase of goods and services from foreign service. It could be happened as there are some countries can’t produce the product that they need. Therefore, they have to buy that product from the other countries which able to create it.
A nation’s balance of trade is the different in values between its exports and imports. If the import’s value is higher than the export has, it would be a negative balance of trade or trade deficit. It is harmful as it could damage of businesses. Moreover, it causes the loss of job and a lowered standard of living. Additionally, the difference between the flow of money into and out of a country is called as balance of payment. There are some aspects that involve on it. For instance, a country’s balance of trade, foreign investment, foreign aid, loan, military expenditures and money spent by tourist. We can conclude that a country with a trade plus has a favorable balance of payment because it receive more money from trade with foreign country compared to paying out.
When a company decides to extend its business into global trading, it has to concern about the other country’s legal, social, culture, technological background and especially a number of basic economics factor, for instance economic development, infrastructure, and exchange
International business is the buying, selling and trading of goods and services across national boundaries. A company could be called international trader when they are involved in exporting and importing. Exporting refers to the sale of goods and services to foreign market. Sometimes, exporting take place through countertrade agreement that involve bartering products for other products instead of currency. Although a company exports its product directly, there is an agent that could help to handle international transaction for other firms. It is called export agent that has responsibility for storage and transportation in export process. Furthermore, importing is the purchase of goods and services from foreign service. It could be happened as there are some countries can’t produce the product that they need. Therefore, they have to buy that product from the other countries which able to create it.
A nation’s balance of trade is the different in values between its exports and imports. If the import’s value is higher than the export has, it would be a negative balance of trade or trade deficit. It is harmful as it could damage of businesses. Moreover, it causes the loss of job and a lowered standard of living. Additionally, the difference between the flow of money into and out of a country is called as balance of payment. There are some aspects that involve on it. For instance, a country’s balance of trade, foreign investment, foreign aid, loan, military expenditures and money spent by tourist. We can conclude that a country with a trade plus has a favorable balance of payment because it receive more money from trade with foreign country compared to paying out.
When a company decides to extend its business into global trading, it has to concern about the other country’s legal, social, culture, technological background and especially a number of basic economics factor, for instance economic development, infrastructure, and exchange