Globalization is an ongoing process that deepens interdependence among countries through international business. International business consists of commercial transactions between two or more countries and is a mechanism that drives globalization. It is important to study international business because most companies are either international or compete with international firms, and the best ways to conduct business differ across countries. There are various factors driving globalization like technology, trade liberalization, and increased competition. Companies engage in international business to expand sales, acquire resources, and reduce risks. They can operate across borders through exports, imports, foreign direct investment, joint ventures and other modes of entry. The external environment including political, legal, social and economic forces affects international operations differently than domestic operations.