International Businesses

International Business

Introduction

The international business consists of the trade market that deals in imports and exports. All the international transactions dealt to manage trade between countries are all considered in international business. There are certain legal laws, rules and regulations and some practical issues which have to be followed when trading with other countries.

It also withstands the discussion of government rules and regulations of international trade of goods, services and commodities. Even the legal issues evolving between various commercial entities and public regulatory agencies are been looked over. The balance of payments are been kept positive so that the financial liability of more imports and lesser exports can be maintained.

Discussion

There are a number of ways in which trade of international business can occur, but they all are categorized under two headings that are imports and exports. Every country wants more of its exports to increase their Gross Domestic Product (GDP) to compete in the international trade market. More of exports can be achieved when resources are being extracted or manufactured within the country. Large trade usually follows the shipping transport because it may carry more goods in a heavy amount.

World trade has increased from $200 million to $11 trillion. As U.S. has been playing a major role in world trade. The making of electronic goods, automobiles and even industrial products are some of those goods which have taken a vast share in the global market. The specialization is the main objective due to which a country can compete in the international market. And specialization in a particular good can only be achieved by division of labor (Hillebrand, E. E., 2010).

To maintain a loyalty or an image of making a commodity is very necessary as comparative advantage may arise. U.S. exports around a fifth of its industrial products and a third of all of its farm products. Almost a third is being earned from international trade, and foreign investment and more than $800 billion goods are exported (Hillebrand, E. E., 2010).

International trade mostly improves the relationships among nations and their lifestyle. Exports are commodities produced or manufactured in one country and sold to other countries. And imports are commodities that are produced and manufactured by other countries and bought from them. U. S. majorly exports food, beverages, computers crops and even telecommunications equipments (Crothers, L., 2012).

Balance of Trade

The difference between the value of exports and imports for a specific time period is called the balance of trade. There could be a trade surplus or deficit. Surplus can be achieved by trading more exports than its imports are a favorable balance of trade and trading fewer exports than its imports is an unfavorable balance of trade. Even serving exports (international phone calls, tourism in U.S., education and airline trips) include a share in increasing the exports of U.S. But U.S. may lose its exports in the most common problem is that Hollywood has to lose around $3 million due to piracy (Hillebrand, E. E., 2010).

Balance of Payments

It shows a country's international financial ...