International business means carrying on business activities beyond national boundaries. These activities normally include the transaction of economic resources such as goods, services (comprising technology, skilled labor, and transportation, etc.), and international production. Production may either involve the production of physical goods or provision of services like banking, finance, insurance, construction, trading, and so on. Thus, international business includes not only international trade of goods and services but also foreign investment, especially foreign direct investment.
‘International business is defined as transactions devised and carries out across international borders to satisfy corporations and individuals .’International business= Business transactions crossing national borders at any stage of the transaction.The international business comprises all commercial transactions private and governmental between two or more countries. Private companies undertake such transactions for profit; governments may or may not do the same in their transactions. These transactions include sales, investments and transportation.At one end international business is defined as, the organization that buys and or sells goods and services across two or more national boundaries, even if Management is located in a single country. At the other end, international business is defined as it is equated only with those big enterprises which have operating units outside their own country. In the middle, there are institutional arrangements that provide for some managerial direction of economic activity taking place abroad but stop short of controlling ownership of the business carrying on the activity, e.g, Joint ventures with locally owned business or with foreign governments. In foreign trade, visible physical goods or commodities move between countries as exports and imports. Exports consist of merchandise that leaves a country. Exporting and importing comprise the most fundamental, and usually the largest, international business activity in most countries. Foreign trade is the exchange of capital, goods, and services across international borders and territories. In Most countries, it represents a significant share of gross domestic product (GDP). Generally, no country is self – sufficient. It has to depend upon other countries for importing goods which are either non-available with it or are available in sufficient quantities. Similarly, It can export goods, which are in excess quantity with it and are in high demand outside. Foreign trades means trading of goods or services between two or more countries. For Example – trading between India and United States of America ( USA ) is called international trade. The goods or services sent by India to the USA shall be export of goods and services From India to the USA and for the USA , these goods or services shall be the import . Therefore, what is coming into the country is an ‘import’ and what is going out of the country is an ‘export’. The international business is a very comprehensive term, which includes many activities that are pursued by different organizations in order to capture a share of the foreign market, but which often goes unnoticed as a common man is unable to make out that they form a part of international business. There are a number of ways, normally called modes of international business, which could be adopted by the enterprises that want to enter an international business.