OUM BUSINESS SCHOOL

SEMESTER 4 / 2015

BBNG3103

INTERNATIONAL BUSINESS

MATRICULATION NO : 821210086323001
IDENTITY CARD NO. : 821210086323
TELEPHONE NO. : 0166916633
E-MAIL : kumarutharajoo54@gmail.com
LEARNING CENTRE : PETALING JAYA LEARNING
CENTRE

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Introduction on international business and the factors contributing to its development.

Today, in an era of global borders, international business must be recognized.

International trade began with the tribes of North Africa beginning trade with dates and clothes
for spices and olive oil from the Middle East, they say they exist since 2000 SM. In recent times,
the growth of international business has been due to factors such as market growth, the purchase
of resources, competitive pressures, technological change, social change and changes in
government trade policies and policies investment. International business has increased in the
last half of the twentieth century, partly because of trade and investment liberalization and partly
because international business has become easier. In terms of liberalization, the negotiations of
the general round of tariffs and trade (GATT) led to trade liberalization, and this continued with
the formation of the World Trade Organization (WTO) in 1995. At the same time, capital
movements, movements of most governments have liberalized capital worldwide, especially with
the arrival of electronic funds transfers. In addition, the introduction of new European monetary
units, euros in circulation in January 2002, had an economic impact on the international
economy.

International business can be defined as all transactions between countries or, in other
words, international business is the implementation of activities that drive the flow of products
and services from a company to consumers in more than one country for profit. These
international transactions can be seen by buying raw materials from one country and then sent to
another country for processing, exporting products from another country for sale and installing a
factory in a foreign country at a labor cost. Most competitive workforce. The parties dealing with
international business transactions are usually individuals, companies and private corporations,
as well as government agencies. Any organization that seeks international business. Face
external influences that will certainly impact these international businesses, since the business
organization is surrounded by elements of the environment that interact and influence decision
making and behavior. Before an organization can design a business strategy, it needs to know,
analyze and understand the situation. Business environment there are four external influences
that influence international business: political and legal policies, cultural factors, economic
power and geographical influence.

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Identify and discuss one trading partner of Malaysia.

According to the 2016 trade data published by the Ministry of International Trade and
Industry (MITI), Malaysia's trade with China in 2016 increased 4.4% since 2015, totaling
RM240.91 billion. China remains the largest trading partner of Malaysia for the eighth
consecutive year since 2009. The data also shows that Malaysia's exports to China declined
slightly in 2016. Among the main products exported to China are manufactured products,
liquefied natural gas. Natural rubber. Meanwhile, the main products imported from China are
petroleum products, electrical and electronic products, mechanical accessories and spare parts.
Earlier, the Chinese ambassador to Malaysia, Huang Huikang, said that while Vietnam had
surpassed Malaysia as China's largest trading partner in ASEAN, Malaysia remained the largest
source of Chinese imports in the region. The rise of China as an important regional and global
destination has been a significant phenomenon in recent years. China's leadership described the
first two decades of the 21st century as a strategic opportunity for the growth of their country.
The period is also considered more appropriate for China to develop world powers as a strategy
that combines elements of national power, such as economic capacity, military power and
diplomatic relations at national and international levels.

This is a major role and responsibility of China as a sovereign nation. Therefore, for
China's leadership today, the successful development of national powers is expected to achieve
its strategic objectives of continuing with the government of the Communist Party of China
(CCP), maintaining development and economic growth, maintaining stability. Internal policy,
maintain national stability. Sovereignty and territorial integrity, maintaining the status. as a
powerful nation. According to Zhang, today China is a rising giant, China is a threat, China will
suffer an economic collapse and China and the United States will co-create the G2 system. This
shows that with the rapid growth of the economy and the increase of its power in general, the
world is beginning to focus more on China. To understand the role and international
responsibilities that China must play as a sovereign nation, this article addresses three important
questions to consider about how much the world needs to understand and accept China's role as a
growing power; China's responsibility to the international community as a growing power; and
China's attitude as a power is growing.

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 The prime minister said that the growth of trade and investment between the two
countries in recent years has been meteoric, and the trend will continue to generate more
opportunities in tourism, science and technology and cultural exchange. He said it in a message
in a scrapbook published by the Malaysia-China Friendship Association, known as PPMC, to
commemorate the 45th anniversary of diplomatic relations between the two countries. Dr.
Mahathir said that initially it was more a government-to-government relationship, the association
reached several levels and achieved achievements that made it China's largest trading partner in
Malaysia. China's impressive growth in recent decades, which has become the second largest
economy in the world, contributes to its widespread presence not only in Malaysia, but in other
parts of the world.

Evaluate the trading performance of Malaysia with the selected trading partner for the
years 2016 - 2018.

The volume of 2017 grow 19.4% to RM1.744 billion, and total exports registered a
record RM935.39 billion, an increase of 18.9% compared to 2016. Imports also increased 19.9%,
to RM838 .14 billion. Export growth was driven by manufactured products, which increased by
18.9% to RM767.64 billion, or 82.1% of total exports. Global economic growth is expected to
moderate for 2019, in line with the slow growth in major economies, including the US. UU. And
China. The world capital market will continue to be affected by the uncertainties surrounding
key developments, including the normalization of advanced economic monetary policy, the
prospect of increasing trade tensions and the slower risks of global growth. In a context of a
more challenging and volatile global environment, Malaysia's economy is expected to remain at
a steady pace, backed by sustained resistance in national private sector activities. The
performance of the national capital market will continue to be influenced by external
developments and general improvements in the volatility of the global financial market.

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However, the domestic market will remain stable, backed by strong macroeconomic
fundamentals, high internal liquidity and the advanced infrastructure of the Malaysian capital
market. Trade value growth between Malaysia and China increased 24.8% to RM213 billion this
year in September, from RM171 billion last year in the same period.

Deputy Minister of International Trade and Industry, Datuk Ahmad Maslan, said the
value of imports to the country reached RM121 billion, while exports were RM92 billion in the
first nine months of this year. The growth of Chinese investment activity in the manufacturing
sector is also going well. As of December 31, 2016, a total of 220 manufacturing projects were
implemented with the participation of China, which involved investments of RM14 billion.
Malaysia's commercial performance continued a positive momentum in October 2018, reaching
RM176.43 billion, and 14.8% more than the same month last year. The increase in trade volume
is reflected in ASEAN, China, Taiwan, Hong Kong, Australia, South Korea, Saudi Arabia, the
United States, India and the European Union. Exports in October 2018 mainly contributed
RM38.38 billion in electrical and electronic products, representing 39.8% of total exports, an
increase of 23.3% compared to October 2017.

Another important export element was the Oil production, which increased 31.2% to
RM8.13 billion for the period. Similarly, chemicals and chemicals increased by 36.5% to
RM5.68 billion and products made of metal by 29% to RM4.38 billion. However, MITI said
agricultural exports of palm oil and palm oil fell 17.3% to RMB 4.12 billion in the same period.
China's GDP grew moderately by 7.6% from January to June 2017, after the restructuring and
transformation of its economy since 2016 towards more balanced and sustainable growth and
decreasing its dependence on exports and investments. Investment in fixed assets increased
marginally by 20.1%, backed by private investment in real estate, which increased by 20.3%.
Exports grew 9.5%, while imports grew 7.3%. In 2017, Malaysia decreased exports to China and
Hong Kong from 4.8% to 4. The growth of exports from Singapore and Japan was 7.4% and
1.1%, respectively, to the United States and Thailand in 4%. , 4%. Previously, Malaysia to
Singapore, China, Japan and the United States, Thailand and Hong Kong accounted for 13.6%,
12.6%, 11.8%, 8.7% and 4.3%, part of the total export volume from Malaysia, 56.4%. 2017,
Malaysia of China, Singapore, Japan and the United States, Thailand and Indonesia, respectively,
contributing with 15.1%, 13.3%, 10.3%, 8.1%, 5.9% and 5.1% respectively represents 57.8%.

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That Malaysia has been. China imports a sharp increase, 20.3%, while imports from Japan, the
United States and Indonesia seem to decrease significantly, falling -5.5% and -12.2%
respectively.

Singapore and Thailand import 8.1% and 4.3% respectively. In 2012, Malaysia was the
first six deficit countries, followed by France, Germany and Vietnam, Costa Rica, Saudi Arabia
and Indonesia, reversing our differences by $ 2.45 billion, $ 2.33 billion, 1.39 billion, $ 1.23
billion, $ 1.15 billion and $ 1.13 billion, the increase or decrease in amplitude was 418.3%,
104.5%, -52.4%, -40, 2% and -75.7%, respectively. The surplus came mainly from Japan, India,
Hong Kong, Singapore and Australia, followed by $ 6.66 billion, $ 5.68 billion, $ 5.42 billion, $
4.86 billion, 4, 71 billion dollars. Malaysia mainly exports machinery and electronics, mineral
fuels, machinery and equipment, animal and vegetable oils, rubber and products, etc. 2017
Malaysia five main export products worth 1,591. Export value ratio of US $ 900 million, 69.9%;
Other important export products include plastics, optical equipment, chemicals, wood and wood,
iron and steel products, jewelry and furniture. Machinery and electronics, mineral fuels,
machinery and equipment, transport equipment and steel are the five categories of imports from
Malaysia. In 2012, the five categories of imports were $ 50.28 billion, $ 27.91 billion, 23.46
billion, $ 7.32 billion and $ 6.06 billion.

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Conclusion

As we know, the world economic system is divided into several main categories, namely
market economy, management economy and mixed economy. However, there are unlimited
variations of each type. The economic system must determine what to produce, how to produce
it, and for whom it was produced. In the market economy, the country's resources are owned or
controlled by the private sector, not the public sector. The main factor that makes the market
economy successful is the power of buyers. Buyers have the right to determine purchasing power
and prices in this economic system, as determined by demand and supply. We all want to carry
out our daily routine without being interrupted or threatened by certain parties. Similarly, a
country must maintain its sovereignty and ensure its protection against enemy attacks. This is
especially important for a small country like Malaysia. Sometimes these small countries need to
seek protection from the superpowers or cooperate with other countries to defend their common
interests. One of the following basic needs of the country is to find a source of income.