International Business is a business where all the activities pass through the other country’s borderline. This definition includes international trade and manufacturing abroad, industry’s service in a field like transportation, tourism, banking, advertisement, construction, retail trade, big trade and mass communication.
There are two reasons to running the International Business, first is specialization between nations. In a relation with an advance or a certain power with all its weakness, therefore a country must be choose a strategic option to produce a strategic commodity. The second is the consideration of business development. A company that already moves in some kind of business inside a country often tries to develop their company to the other country.
In international business there are many activities that a company can do. A company that enters international business usually makes them gets involved from the simple step that doesn’t have any risks until the complex step and contain a highly risk, therefore these are the activities:
• EXPORT INCIDENTAL (Incident At EXPORT)
In order to get involved to the world of International business, a company is generally started from the earliest involvement with export incidental. In this early step generally occurs when the presence of the arrival of foreigners in our country then he buys stuff or goods and then we have to send it to a foreign country.
• ACTIVE EXPORT
Those early step then develop and later there is a business connection that routine and even that transaction as the days gone by become more active.
Next step is license selling. In this step, a newcomer country selling the license or brand from its product to the host country. In this stage, only selling brand and license, so that the host country can do fairly extensive management and marketing of the production process, including raw materials and equipment.
Next step is the more active step, companies in a country that not only sell or license their brand alone, but complete with all its attributes including equipment, production process, a mixture of recipes, production process, quality control, quality control of raw materials and finished products and forms of ministry. This step called as franchising.
In terms to entering the international business, of course there will be obstacles in domestic market further ahead. There are:
1. The Cultural differences
2. Politic Obstacles
3. Operational Obstacles
4. Multinational Company
A. Ethics comes from the word ethos, a branch of philosophy Axiology that discuss about ethics which are values and virtue, values beauty, as well as the selection of good values. Business ethics is a specialized study of the moral right and wrong. Here are the sources that I can get from all over source I can get.
- The Great Dictionary B.Indonesia (1995) Ethics is about right or wrong values espoused the...