International Business and Trade

Abstract

International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national borders. International business occurs in many different forms, the movement of goods from one country to another (exporting, importing, trade), contractual agreements that allow foreign firms to use products, services, and processes from other nations (licensing, franchising), the formation and operations of sales, manufacturing, research and development, and distribution facilities in foreign markets.

International trade is the exchange of capital, goods, and services across international borders or territories. It is the exchange of goods and services among nations of the world. All countries need goods and services to satisfy their people. Production of goods and services requires resources. Every country has limited resources; therefore a country solely cannot produce all the goods and services that it requires. Required goods which cannot be produced or the amount is insuficient as required, need to be provided from other countries. Similarly, countries sell their products to others also when the production of goods comes in surplus quantities than demanded in the country.