This document discusses the meaning, nature, and scope of international business management. It defines international business as trade between countries that involves goods, services, technology, capital and knowledge. International business transactions cross national borders and include imports, exports, and re-exports. The nature of international business is that it operates on a large scale across integrated economies and faces restrictions from different countries. The scope includes merchandise trade, services, licensing, franchising, and foreign investment.

1. INTERNATIONAL
BUSINESS
MANAGEMENT
BY - DARSHAN CHAVAN (SC324)
MIT Arts, Commerce
& Science College

2. CONTENTS
 MEANING
 NATURE
 SCOPE
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& Science College

3. • INTERNATIONAL BUSINESS REFERS TO THE
TRADE OF GOODS, SERVICES ,TECHNOLOGY,
CAPITAL AND/OR KNOWLEDGE ACROSS NATIONAL
BORDERS AND AT A GLOBAL OR TRANSNATIONAL
SCALE.
• IT INVOLVES CROSS-BORDER TRANSACTIONS OF
GOODS AND SERVICES BETWEEN TWO OR MORE
COUNTRIES.
• TRANSACTIONS OF ECONOMIC RESOURCES
INCLUDE CAPITAL, SKILLS, AND PEOPLE FOR THE
PURPOSE OF THE INTERNATIONAL PRODUCTION
OF PHYSICAL GOODS AND SERVICES SUCH AS
FINANCE, BANKING, INSURANCE, AND
CONSTRUCTION.
• INTERNATIONAL BUSINESS IS ALSO KNOWN AS
GLOBALIZATION.
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MEANING OF INTERNATIONAL BUSINESS
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& Science College

4.  INTERNATIONAL TRADE IS OF THREE TYPES :-
1. EXPORT (Selling goods or services to foreign country).
2. IMPORT (Buying goods or services from foreign country).
3. ‘ENTREPOT (RE-EXPORT)’ (Import of goods not for
consumption in home country but for exporting them to
another country).
 THUS, INTERNATIONAL BUSINESS INCLUDES NOT
ONLY INTERNATIONAL TRADE OF GOODS AND
SERVICES BUT ALSO FOREIGN INVESTMENT,
ESPECIALLY FOREIGN DIRECT INVESTMENT.
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MEANING OF INTERNATIONAL BUSINESS
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& Science College

5. DIFFERENCE BETWEEN DOMESTIC & INTERNATIONAL BUSINESS
INTERNATIONAL BUSINESS
 MANUFACTURING AND TRADE BEYOND THE
BOUNDARIES OF ONE’S OWN COUNTRY IS
KNOW AS INTERNATIONAL BUSINESS.
 IT INVOLVES NOT ONLY THE INTERNATIONAL
MOVEMENTS OF GOODS AND SERVICES, BUT
ALSO OF CAPITAL, PERSONNEL, TECHNOLOGY
AND INTELLECTUAL PROPERTY LIKE PATENTS,
TRADEMARKS, KNOW-HOW AND COPYRIGHTS.
 EXAMPLES - AMAZON, CITIGROUP , COCA-
COLA, ETC.
DOMESTIC BUSINESS
 BUSINESS TRANSACTION TAKING PLACE
WITHIN THE GEOGRAPHICAL BOUNDARIES OF
A NATION IS KNOWN AS DOMESTIC OR
NATIONAL BUSINESS.
 IT IS ALSO REFERRED TO AS INTERNAL
BUSINESS OR HOME TRADE.
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& Science College

6. 6
• INTERNATIONAL BUSINESS IS AN ECONOMIC ACTIVITY ACROSS NATIONAL BORDERS AND DIFFERS FROM
DOMESTIC BUSINESS.
• ALL BUSINESS OPERATIONS ARE CONDUCTION ON LARGE SCALE. FIRST SELL IN THE LOCAL MARKET AND THEN
ABROAD.
• INTEGRATION OF ECONOMIES:- INVOLVE THE ECONOMIES OF MANY COUNTIRES. FINACE FROM ONE COUNTRY,
LABOUR FROM OTHER COUNTRY AND INFRASTRUCTURE FROM ANOTHER COUNTRY.
• DOMINATED BY DEVELOPED COUNTRIES AND THEIR MULTINATIONAL CORPORATIONS.
• INTERNATIONAL BUSINESS FACES MANY RESTRICTION ON THE INFLOW AND OUTFLOW OF CAPITAL
TECHNOLOGY, GOODS.
• THE INTERNATIONAL BUSINESS IS VERY SENSTIVE IN NATURE AND ANY CHANGE IN ECONOMIC POLICIES,
TECHNOLOGY, POLITICAL ENVIRONMENT HAS HUGEIMPACT ON IT.
NATURE OF INTERNATIONAL BUSINESS
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& Science College

7. 7
• INTERNATIONAL BUSINESS GIVES BENEFITS TO ALL PARTICIPANTS COUNTIRES. BUT DEVELOPED COUNTRIES GET
THE MAXIMUM BENEFITS
• SPECIAL ROLE OF SCIENCE AND TECHNOLOGY :- HELP THE BUSINESS TO HAVE LARGE SCALE PRODUCTION.
• INTERNATION BUSINESS INCLUDES PRIMARY AND ADDITIONAL TYPES OF INTERNATIONAL BUSINESS, THE
PRIMARY TYPE INCLUDES IMPORT AND EXPORT TRADE AND DIRECT FOREIGN INVESTMENT WHERE AS THE
ADDITIONAL TYPES INCLUDE LICENSING, FRANCHISING, AGREEMENTS, INTELLECTUAL PROPERTY,
(PATENTS,TRADEMARK, KNOW HOW ,COPY RIGHT MATERIALS ).
• DIFFERENT LANGUAGE, DIFFERENT CULTURE
• PAYMENT IN FOREIGN COUNTRIES CURRENCY ( Six most popular currencies for trading U.S DOLLAR, EURO,
JAPANESE YEN, BRITISH POUND, CANADIAN DOLLAR, SWISS FRANC, & so on )
• MARKET SEGMENTATION
NATURE OF INTERNATIONAL BUSINESS
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& Science College

8. I. MERCHANDISE EXPORT AND
MERCHANDISE IMPORT :- TANGIBLES
GOODS IMPORTED OR EXPORTED.
II. SERVICE EXPORT AND IMPORT :-
INTANGIBLE SERVICE IMPORTED OR
EXPORTED. LIKE TOURISM, TRAVEL,ETC.
III. LICENSING AND FRANCHISING :-
LICENSING IS A PROCESS OF
PERMITTING NEW PARTY IN FOREIGN
COUNTRY IN ORDER TO PRODUCE OR
SELL GOODS UNDER TRADEMARKS
PATENTS OR COPY RIGHT IN LIEU OF
SOME FEES.
IV. FOREIGN INVESTMENTS :-
INVOLVEMENT OF FUNDS ABROAD IN
EXCHANGE FOR FINANCIAL RETURN.
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SCOPE OF INTERNATIONAL BUSINESS
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& Science College

9. CONCLUSION
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INTERNATIONAL BUSINESS PLAYS A CRUCIAL ROLE IN THE ECONOMIC
DEVELOPMENT OF A NATION AS IT LEADS TO INDUSTRIALIZATION, EMPLOYMENT
AND REDUCTION OF SCARCITY OF CONSUMER GOODS. OUR SHARE OF WORLD
TRADE HAS SIGNIFICANTLY INCREASED OVER THE YEARS. AT PRESENT,
INTERNATIONAL BUSINESS OPPORTUNITY IN INDIA EXISTS IN AREAS LIKE IT,
TELECOM, R&D, INFRASTRUCTURE, RETAILING, ETC. SECTORS LIKE HEALTH,
EDUCATION, HOUSING, WATER RESOURCES, SMEs ARE UNTAPPED AND OFFER HUGE
SCOPE.
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& Science College

10. THANKYOU!
MIT Arts, Commerce
& Science College