International Business - What Is International Trade?

What is international trade?

International trade paves way for Globalization. Globalization is an increasingly important process that is restructuring international markets. Companies now have to deal voluntarily or involuntarily with international issues. They have to operate in different countries at the same time, with different cultures, political and economic circumstances. This is the simple & easy meaning for international trade.

International trade means doing business in the overseas market and satisfying the needs accordingly the customer's requirement in the international market.

Exporters have to know the actual requirement in the international market. There are various factors that affect the international trade environment and the most common factors are Political / social & cultural environments which have direct effect on international market. Not every country can produce all products. Each nation is specialized in a specific trade & products which becomes the requirement of another nation and by -products for their manufacturing.

As we all know that Japan stands first in electronic and electrical appliances in the international market, US stands top in the IT industry, China are leaders in fabric/ toys / decorative items / reflector glass and in many more such items whereas Korea is the leader in automotive industry and accordingly various countries are specialized in some particular products.

How to deal with foreign-government bribery issues

There are bribery issues at both the micro level (policemen demanding payment for car passage) and at the macro level (government officials demanding bribes in order to favor a company that's in a bidding contest). Doing business in some countries could be very intricate; but only for the inexperienced.

Generally, to be experienced in international business is to understand one's rights to do business in the country in question, the culture of the people, the laws that govern each business transaction, and to have done business in that country before. A more technical and more important angle in international business experience is knowing who to do business with. Doing