What is International Business?

The Definition of International Business

International business relates to any situation where the production or distribution of goods or services crosses country borders. Globalization—the shift toward a more interdependent and integrated global economy—creates greater opportunities for international business. Such globalization can take place in terms of markets, where trade barriers are falling and buyer preferences are changing. It can also be seen in terms of production, where a company can source goods and services easily from other countries. Some managers consider the definition of international business to relate purely to “business,” as suggested in the Google case. However, a broader definition of international business may serve you better both personally and professionally in a world that has moved beyond simple industrial production. International business encompasses a full range of cross-border exchanges of goods, services, or resources between two or more nations. These exchanges can go beyond the exchange of money for physical goods to include international transfers of other resources, such as people, intellectual property (e.g., patents, copyrights, brand trademarks, and data), and contractual assets or liabilities (e.g., the right to use some foreign asset, provide some future service to foreign customers, or execute a complex financial instrument). The entities involved in international business range from large multinational firms with thousands of employees doing business in many countries around the world to a small one-person company acting as an importer or exporter. This broader definition of international business also encompasses for-profit border-crossing transactions as well as transactions motivated by nonfinancial gains (e.g., triple bottom line, corporate social responsibility, and political favor) that affect a business’s future.
Strategic Management and Entrepreneurship

A knowledge of both strategic management and entrepreneurship will enhance your understanding of international business. Strategic management is the body of knowledge that answers questions about the development and implementation of good strategies and is mainly concerned with the determinants of firm performance. A strategy, in turn, is the central, integrated, and externally oriented concept of how an organization will achieve its performance objectives. One of the basic tools of strategy is a SWOT (strengths, weaknesses, opportunities, threats) assessment. The SWOT tool helps you take stock of an organization’s internal characteristics—its strengths and weaknesses—to formulate an action plan that builds on what it does well while overcoming or working around weaknesses. Similarly, the external part of SWOT—the opportunities and threats—helps you assess those environmental conditions that favor or threaten the organization’s strategy. Because strategic management is concerned with organizational performance—be that social, environmental, or economic—your understanding of a company’s SWOT will help you better assess how international business factors should be accounted for in the firm’s strategy.

Entrepreneurship, in contrast, is defined as the recognition of opportunities (i.e., needs, wants, problems, and challenges) and the use or creation of resources to implement innovative ideas for new, thoughtfully planned ventures. An entrepreneur is a person who engages in entrepreneurship. Entrepreneurship, like strategic management, will help you to think about the opportunities available when you connect new ideas with new markets. For instance, given Google’s current global presence, it’s difficult to imagine that the company started out slightly more than a decade ago as the entrepreneurial venture of two college students. Google was founded by Larry Page and Sergey Brin, students at Stanford University. It was first incorporated as a privately held company on September 4, 1998. Increasingly, as the Google case study demonstrates, international businesses have an opportunity to create positive social, environmental, and economic values across borders. An entrepreneurial perspective will serve you well in this regard.

International Business (International Program)

The International Business (IB) program focuses on implementing student-centered learning where the young minds are fostered not only through theories learned but also by providing a supportive environment to practice and discovery. As part of the Binus Business School International Undergraduate Program as the first private university in Indonesia to receive AACSB accreditation, IB aspires to be a purveyor of tomorrow’s leaders and entrepreneurs thus evolving and adapting to the current business environment.

The IB program collaborates with prestigious partner universities that specialize in Entrepreneurship and Innovation and International Business and Trade. More than nine Double-degree programs and Master Tracks as well as an option of study abroad, exchange programs or immersion trips – are offered to IB students to gain their international exposure. Students are exposed to practical experience by partaking in the enrichment track offered by the program: Internships, Research, Entrepreneurship, and Community Development, where hands-on learning experience cultivates not only hard skill competency but also honing student’s soft-skill.

Apart from learning global business and regional integration, the IB program is designed to cater for ASEAN-related subjects, which accommodates the need to equip the level of understanding of the business as well as cultural aspects in the Southeast Asian region. As part of the curriculum, students are required to join the Passage to ASEAN (P2A), an immersion trip to a number of ASEAN countries. This aligns with the application of the ASEAN Economic Community (AEC) in 2016 for all ASEAN members. With relevant entrepreneurial skills obtained in class, it is expected that the students can grasp a wide range of business environments.

Students are exposed to global business applications and practices from around the world. The program is taught by well-qualified academics from prestigious business schools complemented with rich industry experience. The program also draws extensively upon the teaching experience of its international collaborative partner universities. Our international learning experience prepares our graduates to successfully engage with prestigious SMEs and multinational organizations.

Starting September 2020, IB collaborates with the University of Newcastle (UoN) to offer a 4+0 program, in conjunction with its 3+1 and 2+2 programs. The 4+0 collaboration allows students to earn two degrees from Binus International and the University of Newcastle while conducting a full four-year study in Binus International. The 3+1 program enables students to undergo a 3-year on-campus learning and a 1-year off-campus experience, while the 2+2 program facilitates students to take the first two-year in Binus International and the last two-year at a chosen partner university. The four-year study program is intended to equip students with the fundamentals of international business and management competencies while emphasizing the understanding of doing business in an international context, combined with in-depth cultural experience. Current case studies, articles, and textbooks pertinent to Southeast Asian (ASEAN) and entrepreneurship are carefully selected to enhance the students’ global perspectives. The program also incorporates company visits and guest lectures from prominent industries to assist students to obtain practical and dynamic outlook of today’s business environment.

The first year emphasizes the fundamental concept of management with substantial assessment in terminology definition and explanatory context. In the second year, students are trained to develop their analytical thinking, equipped with case study applications, in order to gain a wider business perspective. The third and fourth year will concentrate on the final assessment through critical thinking discussion, case study enhancement and an analytical final project that would accumulate and be completed by thesis writing as a graduation requirement.
Mission

In pursuing its vision, the International Business program provides:

International exposure in academic activities through double degree and study abroad programs
Internationally qualified graduates with innovative and entrepreneurial skills
ASEAN business and entrepreneurial applied research and scholars

Program Objectives

The objectives of the International Business program are:

To nurture graduates competency with international business practices and to be able to work in an international environment equipped with cross cultural skill
To enhance innovative and creative mindset in applying business knowledge in international context
To expose students to Southeast Asian business and entrepreneurial experiences
To create ethical professionals and entrepreneurs with high social awareness
To provide students with competitive attributes and ability to communicate effectively in a global environment
To provide graduates with ICT competencies and skills required to compete in the international market