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Artikel Bahasa Inggris Tentang Ekonomi & Bisnis

The Role of International Business

International business reters to the buying, selling, and trading of goods and services across national
boundaries. Falling political barriers and new technology are making it possible for more and more
companies to sell their products overseas as well as at home. And, as differences among nations
continue to narrow, the trend toward the globalization of business is becoming increasingly
important. Starbucks, for example, serves 20 million customers a week at more than 16,000 coffee
shops, 5,500 of which are outside the United States, in 50 countries. The Internet rovides many
companies easier entry to access global markets than opening bricks and-mortar stores.", an online retailer, has distribution centers from Nevada to Germany that fill millions of
orders a day and ship them to customers in every corner of the world. In China, Procter & Gamble
has developed bargain-priced versions of Tide, Crest, and Oil of Olay, and it regularly relies on groups
that live in the countryside for consumer intormation. Indeed , most of the world's population and
two-thirds of its total purchasing power are outside the United States.
When McDonald's sells a Big Mac in Moscow, Sony sells a stereo in Detroit, or a small Swiss medical
supply company sells a shipment of orthopedic devices to a hos- ital int Monterrey, Mexico, the sale
affects the economies of the countries involved. The U.S. market, with around 300 millon consumers,
makes up only a small part. f the 6.8 billion people elsewhere in the world to whom global
companies must. onsider marketing. Global marketing requires balancing your global brand with .
the needs of local consumers. To begin our study of international business, we must. First consider
some economic issues: why nations trade, exporting and importing. and the balance of trade.
why nations trade
Nations and businesses engage in international trade to obtain raw materials and. Goods that are
otherwise unavalable to them of are available elsewhere at a lower price than that at which they
themselves can produce. A nation, or individuals and organizatons from a nation, sell surplus
materials and goods to acquire funds to buy the goods, services, and ideas its people need. Poland
and Hungary, for example, want to trade with Western nations so that they can acquire new
technology and t echniques to revitalize their formerly communist economies. Which goods and s
ervices a nation sells depends on what resources it has available.
Some nations have a monopoly on the production o a particular resource or product. Such a
monopoly, or absolute advantage, exists when a country is the. only source of an item, the only
producer ol an item, or the most efficient producer of an item. Because South Africa has the largest
deposits of diamonds in the. world one company, De Beers Consolidated Mines Ltd. controls a major
portion of the world's diamond trade and uses its control to maintain high prices for gemquality
diamonds. The United States, until recently, held an absolute advantage in. oil-drilling equipment.
But an absolute advantage not based on the availability of natural resources rarely lasts, and japan
and Russia are now challenging the United States in the production of oil-drilling equipment.
Most international trade is based on comparative advantage, which occurs. when a country
specializes in products that it can supply more efficiently or at a lower cost than it can produce other
items. The United States has a comparative. advantage in producing agricultural commodities such as
corn and wheat. Untill recently, the United States had a comparative advantage in manulacturing
auto- mobiles, heavy machinery, airplanes, and weapons; other countries now hold the comparative
advantage for many ot these products, Other countries, particularly India and Ireland, are also
gaining a comparative advantage over the United States in the provision of some services, such as
call-center operations, engineering, and. s0ftware programming. As a result, US. companies are
increasingly outsourcing , Or transferring manutacturing and other tasks to countries where labor
and supplies are less expensive. Outsourcing has become a controversial practice in the United States
because many jobs have moved overseas where those tasks can be accomplished for lower costs. For
example, India Is a popular choice for call centers for. U.S. firms. As call centers are the first job
choice for millions of young Indians, employers are getting choosier about the people they hire, and
it is difficult to train.
Indians to speak the kind of colloquial English, French, Spanish, German, or Dutch that customers
want. This can be frustrating for customers when they have trouble . understanding the customer
service representative, resulting in increased customer. dissatisfaction with the service.
Trade between countries
To obtain needed goods and services and the funds to pay for thell, nations trade by exporting and
importing. Exporting is the sale of goods and services to foreign markets. The United States exported
more than $1.5 trillion in goods and services in 2009. In China, General Motors is targeting wealthier
customers with the Cadillac, middle management with the Buick Excelle, office workers with the
Chevrolet spark, and rural consumers with the Wuling minivan. U.S. companies that view. china as
both a growth market for exports and a market for lower cost labor for imports and can strategically
integrate these into their operations enjoy significantly higher profits than companies who only focus
on one of these opportunities. o US. businesses export many goods and services, particularly
agricultural, entertainment. movies, television shows, ete.), and technological products. Importing is
the purchase of goods and services from foreign sources. Many of the goods you buy in the united
States are likely to be imports or to have some imported components. Some times, you may not even
realize they are imports. The United States imported more than $1.9 trillion in goods and services in
Balance of trade
You have probably read or heard about the fact that the United States has a trade deficit, but what is
a trade deficit? A nations balance of trade is the difference in value between its exports and imports.
Because the United States (and some other nations as well) imports more products than it exports, it
has a negative balance of trade, or trade deficit. In 2009, the United States had a trade deficit of
around $380 billion, which was nearly half of what it was in 2008. Total U.S. imports exceeded $1.9
trillion in 2009, about 27 percent more than the S1.5 trillion in exports (see Table 3.1).2 The trade.
deficit fluctuates according to such factors as the bealth of the United States and other economies,
productivity, perceived quality, and exchange rates. In 2009 the. United States had a $226.8 billion
trade deficit with China. As Figure 3.I indicates, U.S. exports to China have been rapidly increasing but
not fast enough to offset the imports from China. Trade deficits are harmful because they can mean
the failure of businesses, the loss of jobs, and a lowered standard of living.
Of course, when a nation exports more goods than it imports, it has a favorable balance of trade, or
trade surplus. Until about 1970, the United States had a trade. surplus due to an abundance of
natural resources and the relative efficiency of its manufacturing systems. Table 3.2 shows the top 10
countries with which the United States as a trade deficit and a trade surplus.
The difference between the flow of money into and out of a country is called its balance of
payments. A country's balance of trade, foreign investments, foreign aid, loans, military
expenditures, and money spent by tourists comprise its balance of payments. As you might expect, a
country with a trade surplus generally. has a favorable balance of payments because it is receiving
more money from trade. with foreign countries than it is paying out. When a country has a trade
deficit, more money flows out of the country than into it. If more money flows out of the country
than into it from tourism and other sources, the country may experience declining production and
higher unemployment, because there is less money available for spending.

Sumber : O.C. Ferrel, Geoffery A. , Linda Ferrel . Business A Changing World Eight Edition. United