International business is the core theme in conducting business in current era of globalization. In the competitive environment, businesses are competing at global level. In international business, a company can engage in either of the two ways such as import or export. International trade is also known as global trade where the traders can exchange the goods or services and raw material across the borders. International trade was first started by the industrial revolution in US and spread across the globe in the late 18th and early 19th century. International trade is important to a country with another country. It refers to a country’s economic, social and political. By involving in international trade, its citizens can get timber to produce. In return, the country pays the foreign suppliers money as a medium of exchange. In most countries, international trade represents a significant of gross domestic product. However international trade does have its limitations. As with anything in life, there are advantages and disadvantages to international trade.
The first advantage is increase in consumption power. A country’s nation who involves in international trade is usually has good income. It is because they know to export their products to other countries to earn more money. Thus, they can generate higher incomes and able to afford in demand imported goods. Those people who are rich may demand imported goods to improve their standard of living. It is because imported goods are usually having better quality, design and features. It has not only improved people’s standard of leaving but also economic growth within a country.