International Business is a business thatcontains international economic activities and the action of doing business ina foreign country. It can also denote the act of doing business abroad such as transactionof goods and services between two or more countries. Transactions of economicresources contain capital, skills, and people for the purpose of theinternational production of physical goods and services.
For example,economics, lending, insurance, and construction. Moreover, it deals with topicson how to enter foreign markets and how to choice alliance partners. The mostfrequently discussed foreign participant is the multinational enterprise (MNE).MNE defined as a firm that involves in foreign direct investment (FDI) bydirectly investing in, monitoring, and managing value-added activities in othercountries.
Furthermore, International Business is also recognized asglobalization. Globalization mentions to the international trade between countries,which in turn refers to the propensity of international trade, investments,information skill and outsourced manufacturing to pile the economies of variedcountries together. International Business is needed for the country. Why? Why International Business needed?International Business provides many benefits for the country even to thecountry that we have chosen, which Malaysia is. One of the benefits is it cangive new innovation in our country. Why I am saying this because through Internationalbusiness we could learn new knowledge and skills from the other countries.
Howcan we learn their skills and knowledge? As a student in Malaysia, we can studyin schools or we can also take an international business course in college.Thus, the students can implement the knowledge to their workplace in future toachieve the organization’s goal. Moreover, as a businessman, we can go overseasand engage with the other country business on how they work on a project tomake it a successful one. Besides, the businessman also can communicate wellwith the other countries businessman to get more information on how to improveour projects here, in Malaysia. By doing so, we can increase the profits of thecompany. This is also another benefit for Malaysia.
Why? Why there is an increase in profits? Oneof the reasons is because of the strategic place and product that they produce.The place they have chosen to do a business also plays an important role toincrease the profit. For example, if we do business in a rural area we have tocreate a product that is usable for them, if we create a product that is usablefor the town peoples then the place and product that they have chosen is notright. Thus, it can increase the profit of the country. Moreover, by increasingthe company’s profit, we can do more exporting and it is another benefit forMalaysia.
From this, we can increase the reputation and can be a well-knowncountry. Through this, it can help to increase country’s gross national incomeand it is because if we export more, we can increase income in the country.Besides, Malaysia government welcomed export-oriented industries because itcreates a very positive environment in the country. This is because peoples aresatisfied with our products that we have created. At the same time, it canattract other countries to invest in our country, Malaysia because they trustour country.
Through increasing the profit in Malaysia,it can also increase the employability in our country. Employability is one ofthe main issues going on right now because many fresh undergraduates do nothave a work that relates to their course because there is no muchemployability. Thus, from the profit, our country can build more companies toincrease the employability in the country. Through this, the new employees cangive more ideas on how to improve a product or a company’s situation to abetter one. Besides, it can bring out more professions for our country if weincrease the employability because they have more experience from the currentworkplace.
Thus, we can know their specialty as an individual. Through that, wecan give position according to that specialty. Thus, they will be motivated towork well and they help to achieve more on organization’s goal. As a conclusion, Malaysia needsInternational Business because it can enhance the country to be a better one awell-known country. At the same time, Malaysia can be benefited in many wayssuch as can create new innovation, increase profits and employability, and, canattract more outsiders to invest in our country.
It can also increasepurchasing power.