International Trade

International trade is a trade done by a resident of a country with a population of other countries on the basis of mutual agreement. Population is meant to be antarperorangan (individual to individual), between individuals and the government of a country or a country's government with other governments.
According to Amir MS, when compared with the implementation in domestic trade, the international trade is very complicated and complex. The complexity is caused by the following things.
• Buyers and sellers separated by state boundaries
• Goods must be shipped and transported from a country other kenegara through various regulations such as customs, which originated from the restrictions issued by each government.
• Between one country to country there are differences in language, currency, estimates and scales, the law in trade and so forth.

The benefits of international trade
According Sadono Sukirno, the benefits of international trade is as follows.
Getting the goods can not be produced in their own country
Many of the factors that influence production yield differences in each country. These factors include: condition of geography, climate, level of mastery of science and technology and others. With the international trade, each country is able to meet their own needs that are not produced.
Obtaining the benefits of specialization
The primary reason for foreign trade activities is to obtain profits realized by specialization. While a country can produce a product the same kind as those produced by other countries, but they can sometimes be better if the country is importing goods from abroad.
For example:
United States and Japan have the ability to produce fabric. However, Japan can produce more efficient than the United States. In these circumstances, to enhance the efficiency of the use of production factors, the United States needs to reduce the production of cloth and importing goods from Japan.
By conducting specialization and trade, each country can obtain the following benefits
• The factors of production that each country can be used more efficiently.
• Each country can enjoy more goods than can be produced domestically.
Expand markets and increase profits
Sometimes, employers do not run the machines (production tools) with the maximum because they are afraid will happen over-production, resulting in falling prices of their products. With the international trade, the entrepreneur can run the machines to the maximum, and sell surplus products abroad.
Transfer of modern technology
Foreign trade allows a country to learn a more efficient production techniques and management methods are more modern.
Driving factors of International Trade
Many factors that encourage a country to international trade, including the following:
• To meet the needs of domestic goods and services
• The desire to obtain profits and increase state revenues
• The big difference in the ability of mastering science and technology in the process of economic resources
• The existence of excess domestic product that it needs new markets to sell the product.
• The big difference in circumstances such as natural resources, climate, labor, culture, and the number of people that cause the difference in production output and production limitations.
• The common sense of a product.
• The desire to open cooperation, political relations and support from other countries.
• The occurrence of the era of globalization so that no one country in the world to live alone.

Multinational Companies
PMN is a multinational company or a company that tried in many countries, the company is usually very large. Such companies have offices, factories or offices in many countries. They usually have a central office where they coordinate global management.
A very large multinational companies have funds through funds of many countries. They can have strong influence in global politics, because of their economic influence is very large like the politicians, as well as financial resources are very well off for public relations and political lobbying.
Because the international reach and mobility of PMN, the region in the country, and the state itself, must compete for these companies may place their facilities (with as well as income tax, employment, and other activities of Economy) in the region. To be able to compete, countries and regional political districts sometimes offer incentives to PMN, such as tax cuts, government assistance or improved infrastructure or labor and environmental standards are adequate.
PMN often use subcontractors to produce certain goods they need.
Multinational enterprises first appeared in 1602 that the Dutch East Indies Company.
Example:
• Apple Computer, Coca-Cola, Dell, Exxon, Fiat, General Electrix
• General Motors, Honda, IBM, McDonald's, Microsoft, Nestle
• Nissan, Nokia, Philips, Shell, Sony, Toshiba, Toyota, etc.