Ch 5International Business — Class 12 Commerce, concept-first.

Economies across the world are going through a deep change in the way they make and sell goods and services.

Domestic vs. international business

The fundamental reason

Conducting and managing international business is more complex than doing domestic business. Because political, social, cultural and economic environments vary across countries, firms find it hard to…

International business is much broader than international trade. It includes not just the export and import of goods and services, but a variety of other ways in which firms operate internationally.

Despite its greater complexity and risk, international business matters to both nations and firms, offering several benefits.

The word "mode" simply means the manner or way of doing something. So the phrase "modes of entry into international business" refers to the various ways in which a company can enter international busi…

Meaning

Meaning

Licensing

Meaning

Meaning

A major difference between domestic and international operations is the greater complexity of the latter. Exporting and importing goods is not as straightforward as buying and selling at home.

The number of steps and their sequence can vary from one deal to another, but a typical export transaction involves the following steps.

Import trade is the purchase of goods from a foreign country. The procedure varies from country to country depending on import and customs policies and other statutory requirements.

- International business — Business activities carried on across national frontiers, including trade, foreign investment and overseas production of goods and services.

- International business — International business refers to business activities carried on across national frontiers.