International Business Means International Trade Essay

696 words - 3 pages

In my opinion, I think that international business is better referred to as international trade. This is because international trade involves all the people around the world. International trade is means by exchange of goods and services between countries. Type of trading also raises matters of price, supply and demand, also affects and is affected by global events that occur. Political changes taking place in Asia can cause an increase in labor costs. Thus, it increases the manufacturing costs for the American sneaker company based in Malaysia, which in turn will cause an increase in the price paid to buy the shoes at a local shopping center.
Markets can also be extended to international ...view middle of the document...

If a country is unable to produce a product that they want, they can get it from other countries using the trading process. This is known as a specialization in international trade.
Besides improving efficiency, it also makes the countries to take part in a global full fill, except that it also encourages foreign investors to invest money in companies and other assets. Economy had to grow more rapidly and easier, and faster to become a participant in a competitive economy. On the government side, FDI is a way in which currencies and foreign expertise can enter the country. This will increase the level of employment and his theory, lead to a growth in gross national product. On behalf of the investors, FDI offers company expansion and growth, and therefore get a higher yield.
Theories
As with other theories, there are opposing views. International trade has two contrasting views regarding the level of control placed on trade: free trade and protectionism. Free trade is the simpler of the two theories: a laissez-faire approach, with no restrictions on trade. The main idea is that supply and demand factors, operating on a global scale, will ensure that...

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