What is International Business?
A person cannot meet all of his requirements using only his available resources. He needs to trade goods and services with other people. In a similar way, a nation may meet all of its needs using its own resources. But, there are some circumstances where it must depend on other nations. This dependence on a single country for any given good is entirely due to the natural resources of that country. The items created in this manner are first consumed domestically in a country and the excess is exported to other countries. In exchange for this sale, the country makes purchases of goods that are not widely available in that country. Hence, supply and demand are in balance. This trade between the two countries is known as international business. In simple terms, international business refers to those business activities that take place beyond the geographical limits of a country. It includes not just international trade in products and services, but also capital, labour, technology, and intellectual property such as patents, trademarks, and copyrights.