International Business Essay Example | Topics and Well Written Essays - 3000 words - 5

International Business - Essay Example People from one region within a country used to go to other regions to exchange goods. Different communities realized that there were other goods that they did not know and were available in long distances. This was realized when people from different regions travelled long distances in search for more resources. Word soon spread across the world and communities from different parts of the globe started to look for the different goods. There were goods that were more precious. Merchants went across the world just to get those goods. Such countries included China, India, America and Europe. International business started to blossom at that time leading to a number of civilizations. Domestic business or trade is a form of business, which is confined to the borders of a country. People within that country or territory buy goods and services within their borders. Domestic trade is usually good as it develops local infrastructure and also plays a role in enriching its own. This form of tr ade is probably the oldest form of trade. It was the main type of business in many parts of the world long before, merchants started to go to far lands. On the other hand, international business is business between countries. In this case, merchants from different countries exchange goods for money. Different countries are endowed differently. There are some that are good in industries while others have resources that can be used as raw materials for their industries. The country with industries, for example, would buy raw materials from the country with those resources. Money paid to the country with the resources would be used to buy industrial goods from the industrialized country. Ideally,what is sold to another country is export and what is received from another country is imports. The two countries benefit by getting what they did not have and foreign exchange (Curtin, 2002). One country can trade with many countries depending on its needs. Some countries have been found to im port much more than they import while others export much more than they import. Countries importing more are known as net importer countries, for example, the United States while countries that export more are known as net exporter countries, for example, Japan. International business has assisted many countries to develop and share with others. The unique characteristic of international business is that it also boosts domestic business in some way. Use of the terms domestic business and international business has been very confusing to some people in some scenarios. For example, there are some people who may argue, since domestic business is in certain territories or countries, then in countries with state government systems, the individual states experience both domestic and international trade in some way. Such people will argue that a State like California and Texas trading is international business. Nevertheless, different counties within California do domestic trading. Accordi ng to such people, interstate trade is the same as Britain and France trading (Curtin, 2002). This theory is true, to some extent, and wrong in another way. The different states in the United States represent some form of territorial jurisdiction. In fact, some states operate very differently from others. They have their own regulations for different things and differ from others. Each state has its own governing body that is responsible for drafting and passing policies. As such, the different countries of diverse