International Business Essay

953 Words4 Pages
The first part of International Business is international trade policy, which is the basic part of International business. In the present, people see the opportunity in this globalization era which is many countries open an opportunity to the investor to invest and do business in their countries. Some people think that make a business with foreign country is easy as long as they have money but unfortunately the reality is not that easy. People need to face many policy and tax before they can do business with international company and if they don’t learn international business, they could have loss in their transaction because of the regulation and tax that they must pay before they can make the transaction. Nevertheless, there are some countries which have a free trade policy in their regional so it becomes an advantage to anyone who want to make business in that regional. This part describes about the policies about International business so people can consider in which country their business can make a good profit and income for them. After learn about the policies, people should have knowledge and understanding about international trade theory. International trade theories describe the comparative advantage between two countries who want to make a trade. In this part, people will learn about countries’ surplus and lack, this is very important because many countries who has surplus in one product don’t accept a trade in that product again. They reject the trade because they have surplus resource in that area which is useless if they don’t process and distribute it. In addition, this part also explains us about labor productivity which determines the production cost. Production cost is affected by wage of the labor so many company should have strategies how to use this opportunity to make more profit. International trade theory make people

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