Indonesia 's An International Market Essay

Exporting has become a very important business strategy nowadays. In order for firms to expand to the international market, and also to maintain and grow their share of market in whatever industry they are in, depending on their goals and objectives, any company must at least explore this possibility. A few and important advantages might come into place, in that they can extend their sales potential of their existing products, increasing margins through a larger customer base. Also, these small to large businesses can consolidate by gaining global share of market, they can reduce their dependence on their existing markets,

In the midst of the help from the extremely advanced transportation, modern production methods, rapid industrialization and the increasing facilities of outsourcing of trade and services the international trade organization is increasing and decreasing very fast in the globe. The international trade account has a good distribute of a country’s gross on domestic product. It is in addition one of most important foundations of income designed for the developed as well as to developing country. For the reason that of many country benefits from the international trade approximately every one in the

Exports are the goods or services made domestically and sent to other countries. This is important to a country’s economy, as it can become a big source of revenue for the country.

International trade is believed by economists to be good for both countries involved. It promotes financial and economic growth throughout the world. It creates jobs, sustains economies, improves standards of living, promotes competition, lowers prices, and strengthens the bond between nations. In 2012, approximately 4.9 million people were directly or indirectly holding jobs that were associated with the production of goods and services sold to other countries (cite). Many of these jobs are manufacturing jobs that produce large amounts of products to sell to other countries. This is called an export. Export sales help maintain high levels of employment by breaking down barriers of unfair taxes. With opportunity to buy product from other countries, prices remain competitive.

International trade has become a very important means of survival for global economies in this day and age. As countries continue to grow and resources become smaller, trade with other countries who have provide certain resources in a greater capacity becomes very lucrative. At the same time, those same countries must be able to offer something of similar value. Through this ability of trade, this allows countries to

The decline in commodity prices across the globe in the last few months of 2008 combining with a policy change in Vietnamese rice exports lead to a continuous contraction of the exports of this country. According to the Viet Nam General Administration of Customs (VGAC), the average export price of some key commodities such as oil, rubber, rice, coffee, beans went down, the signing of new export contracts was more difficult, and many export contracts were suspended or delayed to late 2009 (Pham 2009). Data on exports of Vietnam (Table 1) showed some positive signs in 2009, but this improvement didn’t reflect the true state of Vietnamese exports at the time, as all exports increased due to gold exports. Only by the end of the first quarter of 2010, exports started to stabilize back to its pre-crisis levels.

Indonesia today has rebuilt its financial stability and has tried to reorganize its fiscal policies since the global Asian monetary crisis. Even though the problems which rise from monetary crisis remain (such as unemployment), the condition of economic development in Indonesia is positively growing up. The total GDP (purchasing power equality) in Indonesia is $827, 4 billions (estimated in 2004) and the GPD per capita is $3,500. These numbers show a good progress sign for standard of developing countries.

The word “Indonesia” has two Greek words and meaning in it. “Indos” means Indian and Nesos mean “Islands”. According to the Embassy of Indonesia, the whole country is made up of 17,508 islands. However, like the islands scattered everywhere, Indonesia seems to have a “messy” government. The government of Indonesia has started after decolonization from the Dutch, which is called the “Unitary State of the Republic of Indonesia” starting from 1945. The structure of the Indonesian government seems very similar to the one of U.S. It has an executive, judicial, and and legislative branch. Just like the US government, Indonesia has political representation, bureaucratic organization, judicial system, and law enforcement. However, following the reforms of the government, the Indonesian government is not stable and is apprehensive in taking the government forward.

The Over-all ranking of Indonesia among the Asia-Pacific region is 22nd out of the 41 countries, and the total score is below the world and regional averages. Indonesia’s economic freedom score is 58.1, making its economy the 105th freest in2015 index. The score has been decreased by 0.4 point since last year. Their economy is basically dependent on domestic market and state owned enterprises.

Firstly, International trade is the trading of products and ventures crosswise over worldwide outskirts. It makes the economy to make utilization of the characteristic assets for the creation of merchandise and how it 's most appropriate. It has been discussed that international trade arises when a country specializes in the production of certain goods and thus it produces more than what is needed to supply the domestic demand and therefore it exports the surplus (Collings, 1929). Also, it empowers a nation to acquire products are not produced in the economy as it may be expensive by bringing in from different nations at lower costs. Another thing is that it increases efficiency due to the international competition, each producer tries to produce the better quality goods (Collings, 1929). On the other hand, international trade may have a negative

The exchange of goods and services among countries is known as international trade. It is the foundation of a global economy, where prices, supply and demand factors affect and are affected by events all around the world. Such trade provides an opportunity for countries to be exposed to products unavailable domestically and to provide their local products to foreign markets (Heakal, 2015). The following sections will discuss the benefits and drawbacks of international trade.

Apart from foreign direct investment exports has been one of the determinants of upholding higher economic growth, better schooling and life expectancy due to their assimilation in the world economy. Developing countries can enlarge their markets by allowing firms exporting and achieving economies of scale. Exporting is one of the prominent channels of technology transfer to other nations (Pack. 1993) . Normally industrial policies are prepared to stimulate exports. The export competitiveness or export performance generally can be measured by several factors, for instance, real exchange rate, comparative advantage, terms of trade, geographic concentration, trade policies, world income etc. We have used Revealed Comparative Advantage and gravity

The beauty industry, cosmetics in particular, has a bright future as women, no matter whether they live in big cities or small villages will always need a fully loaded make-up pouch in their bag.

In the development of any country’s economy, exports play a crucial role. Export is the most important aspect of earning foreign exchange. A country should have to be equipped with natural resources, so that it can sell these resources into the

Malaysia’s Exports since 2000 till present. Its exports greatly decreased after the 2008 Financial Crises before rebounding.