Name : Tania Yolandia L.K.

NIM

: 125020307111061
CHAPTER 1 COMMENTARY PAPER
In my opinion, we should study international business so that we can become more

educated consumer and knowledgeable about international events that have an impact on our
daily basis. When you wondering why do companies go international, the answer is to
minimize competitive risk, acquire resources, expand sales and diversify sources of sales and
supplies. Generally, international business is comprises all commercial transactions (private
and governmental, sales, investments, logistics, and transportation) that take place between
two or more regions, countries and nations beyond their political boundaries.
The participants in international business vary from small businesses to multinational
corporation. There has been growth in globalization in recent decades due to (at least) the
following eight factors:

Technology is expanding, especially in transportation and communications

Governments are removing international business restrictions
Institutions provide services to ease the conduct of international business
Consumers want to know about foreign goods and services
Competition has become more global
Political relationships have improved among some major economic powers
Countries cooperate more on transnasional issues
Cross-national cooperation and agreements
There are some risk in international business such as environmental risk for example,

if we want to build our firms at disaster-prone areas, we should prepare some plan if it
actually happened. In reality, there are differences in price at every area, so we should adapt
with the area that we chosen to get maximum profit.
To become successful internationally we must identify the target market, find the
most appealing customer benefit develop a motivating over, then decide how to publicize the
firms business and establish a plan to promote customer loyalty.