International business involves commercial transactions between two or more countries, including private companies trading goods and services for profit and governments trading for profit and political reasons. It refers to all cross-border economic activities like trade of physical goods, services, capital, and labor. A multinational enterprise operates in multiple countries and has worldwide markets and production, like fast food companies, automakers, electronics firms, and energy companies. The conduct of international operations depends on a company's objectives and means of operating abroad, and is influenced by physical, societal, and competitive factors in different countries.

1. INTERNATIONAL BUSINESS

2. International business is a term used to collectively describe all commercial
transactions (private and governmental, sales, investments, logistics,and
transportation) that take place between two or more nations. Usually, private
companies undertake such transactions for profit; governments undertake them
for profit and for political reasons.
It refers to all those business activities which involves cross border transactions
of goods, services, resources between two or more nations. Transaction of
economic resources include capital, skills, people etc. for international
production of physical goods and services such as finance, banking, insurance,
construction etc.
A multinational enterprise (MNE) is a company that has a worldwide approach
to markets and production or one with operations in more than a country. An
MNE is often called multinational corporation (MNC) or transnational company
(TNC). Well known MNCs include fast food companies such as McDonald’s and
Yum Brands, vehicle manufacturers such as General Motors, Ford Motor
Company and Toyota, consumer electronics companies like Samsung, LG and
Sony, and energy companies such as ExxonMobil, Shell and BP. Most of the
largest corporations operate in multiple national markets.

3. The conduct of international operations depends on companies’
objectives and the means with which they carry them out. The
operations affect and are affected by the physical and societal factors
and the competitive environment.
Operations
• Objectives: sales expansion, resource acquisition, risk minimization
Means
• Modes: importing and exporting, tourism and
transportation, licensing and franchising, turnkey
operations, management contracts, direct investment and portfolio
investments.
• Functions: marketing, global manufacturing and supply chain
management, accounting, finance, human resources
• Overlaying alternatives: choice of countries, organization and control
mechanisms

4. Physical and societal factors
• Political policies and legal practices
• Cultural factors
• Economic forces
• Geographical influences
Competitive factors
• Major advantage in price, marketing, innovation, or
other factors.
• Number and comparative capabilities of
competitors
• Competitive differences by country
There has been growth in globalization in recent
decades due to the following eight factors:
.

5. • Technology is expanding, especially in transportation and
communications.
• Governments are removing international business
restrictions.
• Institutions provide services to ease the conduct of
international business