Meaning of International Business

Domestic vs. international business

• A business transaction that takes place within the geographical boundaries of one nation is called domestic or national business. It is also known as internal business or home trade.
• Manufacturing and trade carried on beyond the boundaries of one's own country is called international business, also referred to as external business.

Definition

International business can be defined as those business activities that take place across national frontiers. It involves not only the international movement of goods and services, but also of capital, personnel (people), technology and intellectual property such as patents, trademarks, know-how and copyrights.

International business is broader than international trade

• Many people wrongly treat international business as being the same as international trade (exports and imports of goods). This is not correct.
• No doubt, international trade in goods has historically been an important part of international business. But the scope has widened considerably.
• Trade in services — international travel and tourism, transportation, communication, banking, warehousing, distribution and advertising — has grown a great deal. …