Name: Raka Rahman

NIM : 125020300111012

Class : Akuntansi-CE

Commentary Paper

Chapter I

International business is all commercial transactions—private and governmental between two or more countries. Private companies undertake such transactions for profit; governments may or may not do the same in their transactions. These transactions include sales, investments, and transportation

Another definition of “international business” refers to profit-related activities conducted across national boundaries. The environment for those business activities within which the international manager functions is shaped by major developments in the world. Such developments are globalization

When operating internationally, a company should consider its mission (what it will seek to do and become over the years; what is the purpose of the company’s existence?); its objectives (what is the company trying to accomplish according to its mission?); and strategies (means to achieve its objectives).

Companies engage in international business in order to:

• Minimize competitive risk

• Acquire resources

• Expand sales

• Diversify sources of sales and supplies

Companies of all types and sizes, and in all types of industries, enter into international business transactions. Manufacturing companies, service companies, and retail companies all search for customers outside their countries. As mentioned earlier, an international company is a business that engages directly in any form of international business activity such as exporting, importing, or international production. No matter what the nature of the international business transactions, there are different types of international companies, and we will take a closer look at them in the following pages.