The Importance of Studying International Business

Let us return to international business, the implications of the activities described previously, and bring up the importance of studying international business. Griffin and Pustay (1996) suggest a number of things that underlie the importance of studying international business as follows.

"There are many different reasons why students today need to learn more about international business. First, almost any large organization you work for will have international operation or be affected by the global economy. You need to understand this increasingly important area in order to better assess career opportunities and to interact effectively with other manager. Second, you made eventually work for a firm that is owned by a corporation headquarters in another country. Third, keep pace with your future competitors. Fourth, To stay abreast of the latest business technique and tools. Firth, to obtain cultural literacy."

Based on the above concept, the need for an understanding of international business is carried out so that business people can better search for and formulate the needs of global customers so that they can compete, both domestically and internationally, and coordinate various marketing activities in dealing with global environmental constraints. In detail, the essence of international business includes aspects as shown in Table.
Based on the above concept, the need for an understanding of international business is carried out so that business people can better search for and formulate the needs of global customers so that they can compete, both domestically and internationally, and coordinate various marketing activities in dealing with global environmental constraints. In detail, the essence of international business includes aspects as shown in Table. 


International business important characteristics

In international business, there are several main activities that become important characteristics that occur in international business in the following countries.
  1. Visible trade (merchandise export and import): trade in tangible goods.
  2. Invisible trade (service export and import): trade in services; bank; travel; and accounting.

Table: The Essence of International Business

 Target Adjustment Actions
Search for global customer needs
  1. Conduct marketing research and analyze market segments and seek similarities and differences for all countries.
  2. Adapt products, services, and marketing mix elements to satisfy customer needs.
  3. Satisfy technological decisions and fabricate the implications of costs and prices and the development of a global customer information database, all distribution, and logistics.
 It's better to compete
  1. Assess, monitor and respond to global competition by offering better value and developing superior brand image and product positioning, wider product coverage, lower prices, high quality, good performance, distribution, advertising, and services .
  2. Following that competitors can include BUMNBUMN, MNCs, and domestic companies with different objectives.
 Coordinating business activities Coordinate and integrate business strategies and apply them to all countries, regions and global markets by involving centralization, delegation, standardization, and local responsiveness.
 Global environmental constraints Recognizing that the global environment includes complex variations due to industrial, protectionist, and government policies; economic and cultural differences; differences in marketing infrastructure; and financial constraints caused by variations in foreign exchange rates and inflation.

Importance of understanding international business 

In detail, the reasons underlying the importance of understanding international business are as follows (Rusdin, 2002).
  1. Many large organizations (perhaps where we study / work) have carried out operations at the international level and are influenced by the global economy. We need to increase understanding of this in order to develop career opportunities and carry out effective interactions with managers.
  2. Small and medium businesses (SMEs) are more involved in international business. Nowadays not only MNCs are involved in international business activities, SMEs have considerable opportunities to carry out international business activities.
  3. Maybe we work for companies whose headquarters are in other countries. In the current era of globalization, company operations have the opportunity to spread throughout the country and are even required to be able to meet the needs of the world market. The implication is that every company must be in fact ready to compete internationally or be ready to be part of these international business activities.
  4. Get to know the latest business techniques and tools. The development of science and technology in the business sector tends to be fast enough so that changes can occur at any time. In this connection, we always need to know the latest development of business techniques and tools.
  5. Get to know culture in business interactions. Business interaction is basically human interaction so that cultural, political and social aspects are inseparable from business problems. International business in its development requires information about culture, politics, and other social aspects that can influence business activities.
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