International Business



International Business on the other hand, may be defined as those business transactions among individuals, firms or corporate entities in private/ public sector that result in movement of goods/ services across nations. The International business not only includes export/ import but also investment of capital transactions in intangible assets such as TMs, Patents, Licenses, Franchises, transfer of manufacturing technologies etc.


Thus, International Business includes a gamut of activities. Business activities across nations require corporate to understand the different variables of the environment of the nation in which they operate. These variables include socio-economic factors, political, legal, technological, cultural & geographical factors.


Thus challenges posed by these factors and its understanding help managers to work its understanding help managers to work effectively. International business may be categorized as follows:-


  1. Real:- Studies trade theories-entry modes to be adopted to enter in a country.


  1. Financial:- Studies financial aspects – force rates, balance of payments & international marketing systems. Appropriate cost of capital, opportunities of international diversification.


Thus it may be said that both international trade & international Business are very different from each other but which globalization very important subjects of study for any country/ nation.


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