Q.State the meaning of international business.

This is a short definitional question that only needs the core meaning stated clearly and precisely, without extra elaboration.

International business refers to all commercial activities — including trade in goods and services, cross-border investment, licensing, franchising, joint ventures, and the setting up of production facilities abroad — that are carried out across the boundaries of two or more countries. It is a wider concept than international trade, since it covers not only the buying and selling of goods and services across borders but also every other form of cross-border commercial commitment a firm may make.

Students often write the definition of 'international trade' (buying and selling goods across borders) when asked for 'international business', missing that international business is the wider term covering investment, licensing, franchising, and production abroad as well.