International business involves any commercial transactions that cross borders between different countries and regions. It has a large scale, integrates economies, and provides benefits to participating countries, though it also faces some international restrictions and is dominated by developed countries. The main reasons for international business are to expand into new markets, increase profits and productivity, attract talent, and take advantage of lower costs. The key types of international business include exporting, franchising, licensing, and foreign direct investment.
3. What is International Business?
International business focuses
on any commercial activity or
transaction between companies,
organizations, individuals, or
government entities that crosses
borders into different countries
and regions.
4. Nature of International Business
1 • Large scale operations
2 • Integration of Economies
3 • Benefits to Participating Countries
4 • International Restrictions
5 • Dominated by Developed Countries
6 • Market Segmentation
5. Reasons for doing International Business
1 • Market Expansion
2 • Increased profitability
3 • Increased productivity
4 • Attracting new talents
5 • Cost advantage
6. Types of International Business
Exporting
Franchising
Licensing
Foreign Direct Investment (FDI)
