What is International Business?

Summary

International business involves trade of goods, services, or capital across borders and has grown significantly with globalization. It demands diverse skills, including understanding different cultures and laws. Examples include outsourcing, multinational companies, and digital services like teaching English online. The internet has greatly expanded international opportunities.

Takeaways

• 🌐 International business involves selling goods, services, or capital across international borders.
• 📈 Also known as globalization, international business has significantly increased over the past 50 years.
• 🌍 Every country imports a variety of goods, services, technology, capital, employees, and intellectual property.
• 🧳 It may require traveling or living in another country and understanding diverse business practices, laws, economies, and cultures.
• 🏢 Companies that outsource to agencies abroad for cost efficiency are involved in international business.
• 🔄 According to e-finance management, international business includes cross-border transactions of value, such as goods, services, technology, capital, and knowledge.
• 🌉 Multinational companies, with operations in more than one country, are key players in international business.
• 💹 The international marketplace is more competitive but offers greater growth potential for companies.
• 🌟 The internet has dramatically expanded international business opportunities.
• 💼 Examples include English language teachers who can teach and get paid online through various platforms.

Q & A

What is international business?

International business refers to any type of trade of goods, services, or capital between countries, across international borders.

How has international business evolved over the past 50 years?

International business, also known as globalization, has increased significantly over the past 50 years with virtually every country in the world engaging in imports of goods, services, technology, capital, employees, and intellectual property.

What additional skills are required for international business compared to traditional domestic business?

International business may require more than traditional domestic business skills, including understanding diverse business practices, laws, economies, and cultures, as well as potentially traveling or living in another country.

Can you provide an example of a company involved in international business?

A company that outsources its customer service to an agency abroad where labor costs are lower is involved in international business.

What is the definition of international business according to e-finance management?

According to e-finance management, international business is a cross-border transaction between individuals, businesses, or government entities involving anything that has value such as physical goods, services, technology, capital, and knowledge.

What is a multinational company and how is it related to international business?

A multinational company, also known as a multinational corporation or transnational corporation, has business staff and premises in more than one country and is involved in international business.

How does the international marketplace differ from the domestic market in terms of competition?

The international marketplace is much more competitive than the domestic market, but it also offers significantly greater growth potential for companies that become involved in international business.

How has the internet expanded international business opportunities?

The advent of the internet has dramatically expanded international business opportunities, allowing for example, an English language teacher to teach students in other countries via Skype, Zoom, or Google Meet and be paid through PayPal, Square, or Venmo.

What are some of the challenges faced by businesses operating internationally?

Businesses operating internationally face challenges such as understanding and adapting to diverse business practices, laws, and cultures, as well as dealing with different economic conditions and potential language barriers.

How does international business contribute to the global economy?

International business contributes to the global economy by facilitating trade, promoting economic growth, creating jobs, and fostering innovation through the exchange of goods, services, technology, and knowledge across borders.

What are some of the benefits for a company to engage in international business?

Engaging in international business can provide a company with access to new markets, lower production costs, increased revenue, and the opportunity to leverage resources and capabilities from different countries.