An Important Part Of International Business

My chosen topic to research is, why global business and international trade is important to the U.S.? This topic is relevant to the U.S. as it directly relates to economical lives today and the future. We need to realize the significance of trade and consequently to continue to be a successful nation in providing for the next generations. This international trade is paramount to the U.S. to “maximize product and efficiency; increase market audience and receive foreign direct investment.” (Satterlee 2014). Within the Agriculture industry, the U.S. export reached $152.5 billion over five-year period. In the hearing to pass the Trade Promotion Authority (TPA) it showed the

The business internationalise means a company’s production and business activity are not only confined to one country, but also integrate the different countries’ raw material and labour and technologies to

In the United States, the office that initially reviews and rules on license applications is the:

The agency consists of three business units: Industry and Analysis (I&A), Global Markets (GM), and Enforcement and Compliance (E&C). The Industry and Analysis unit consists of the agency’s trade, industry, and economic experts who are assigned to improve the economy through International Trade and strategies. The Industry and Analysis business unit tries to increase exports of the United States. The Global Markets unit has international staff who provide the United States firms with country-specific export promotion services. They also promote the States as an “investment destination”. And finally, the Enforcement and Compliance unit is in charge of enforcing the United States trade law.

With the growing trend of globalization within supply chains to expand products into foreign countries, understanding the elements of trade blocs that enable open markets between member nations while also decreasing the cost of conducting business within a country is essential in making strategic logistical decisions. The North American Free Trade Agreement (NAFTA) has provided one such trade bloc that encompasses the countries of the United States, Mexico, and Canada. Since the inception of NAFTA in 1994, significant financial results have been achieved regarding increases in trade revenue and increases in the Gross Domestic Product (GDP). While there is a debate on whether NAFTA has achieved its intended goals, growing concerns in the

International trade is defined as the exchanging of goods, services, capital between different countries and regions, which have given rise to a global economy. The various types of trade as well as the constant advancement in technology are continuously changing the economic trends among various industries. In terms of supply and demand, international trade is constantly altering based on current events that are occurring throughout the world.

Emerging as a major international business tool for - Sales (both business-to-business and consumer), research, advertising, and communications.

Organizations that operate internationally need to review and ensure that free trade agreements are in place for easier transfer of materials for the purpose of manufacturing as well as the distribution of the final inventory for end sales.

Export and FDI (Foreign Direct Investment) increases in the future, globalization reaches higher scope, businesses have to consider these trends (OECD, 2007).

Often these steps are followed by negatives. According to page 3, firms must face and understand the risks accompanied by foreign exchange, note the possible challenges of doing business with foreign markets, and identify marketing opportunities (Farooq). While these steps are carried out by all firms, they can be very daunting. This is why large firms, that are more experienced, proactively seek marketing opportunities. Due to their size, these small firms tend to be intimidated when it comes to seeking opportunities, therefore they seek them reactively. When these steps are not carried out carefully and as planned, the negatives of exportation come forth. Where most firms find themselves in trouble is when they have poorly analyzed the market in which they are trying to export, lacking expertise required to enter a foreign market, or poorly executed campaigns with their desired market. The reasons stated above are why the barter and trade system needs the two other key factors in order to successfully work.

Frames, in short, are used to help people interpret the world around them as well as a way to represent that world to others. They can be thought of as cognitive shortcuts that one may use to make better sense of complex information. When it comes to the Global frame, it is by no means a new concept. The idea of globalization has been around for a long time, but today, has gotten a new meaning. With the advent of the internet and other information systems, societies have never been so close and connected with each other. The first significant characteristic of the Global frame is that of the International business system. This includes competition, commodities, knowledge, financial, trade, and a transitional economy. The international business system basically means that the world of business is all integrated with one another, connected mainly by the Internet. This system allows anyone to utilize more markets as well as allowing companies to operate both efficiently and economically. All of this ties in with the next significant characteristic, which is Integration Technologies of markets and nation states. Because more and more international business are integrated with each other every year, the deregulation of certain governmental policies is occurring and this has also resulted in privatizing many sectors. The next significant characteristic to be described is the World Wide Web Digitization of Communication networks, Interconnectivity, and Cyberculture.

International business involves all commercial transactions between private and governmental between parties of two or more nations. Global occasions and rivalry influence practically all organizations substantial or little. However, the universal environment is more intricate and varying than an domestic domain.

If both of these countries were given resources to produce both oil and cars it would be a waste for both the countries therefore by trading with each other, Japan and Saudi Arabia employ their respective resources efficiently by mutually benefiting from each other’s relationship. Japan gets oil that it needs to power its cars, and Saudi Arabia gets the cars that its citizen needs. Thus products that countries produce and with which they can trade freely with others countries and can achieve substantial gains from trade and can result in improving national living standards.

International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.

International trade has a timeline that dates back to the 19th century BC where the Assyrian merchant colony existed. Ever since, international trade has evolved more elaborate, more important, and has proved to become an essential cog to modern day business. It is for this reason that integral shipping agreements have been placed to mediate the responsibilities and liabilities between exporters and importers. There are different types of agreements that can be made that are preferred by the exporter/importer, but all with the purpose of reducing transactional confusion.