This book discusses International Business Management. It includes an introduction to international business, the external environment of global business, international trade and global economic theory , strategies for entering global markets, global marketing management, and the risks, challenges, and future directions of international business.
Competition in the domestic market is essentially global competition. Current and future job opportunities are plentiful in companies engaged in international business, whether as exporters,
importers, or subsidiaries of foreign multinational corporations operating in Indonesia. For example, an accounting graduate working in a Japanese car factory in Indonesia needs to understand international financial reporting standards and international transfer pricing regulations, topics not taught in depth in traditional domestic accounting courses (Ball, Geringer, Minor, & McNett, 2019).
“International business is all business activities that involve cross-border transactions of goods, services, resources, knowledge, or skills between two or more countries. The key participants in
international business are multinational enterprises (MNEs), which arefirms that own or control value-added activities in more than one country.” This definition broadens the scope of traded objects, namely not only goods and services, but also resources, knowledge, and skills. Meanwhile, Salim (2019) in the book International Business provides a simpler and more easily operationalized definition, namely: “International business is a business activity carried out by a company that involves crossing national borders, whether in the form of export-import of goods and services, foreign direct investment, strategic alliances, licenses, franchises, or other forms of cooperation, which aim to expand market share, obtain cheaper or rarer resources, and increase the company’s efficiency and competitiveness.”