nternational business 

is a term used to collectively describe all commercial

transactions (private and governmental, sales, investments, logistics,and transportation)
that take place between two or more nations. Usually, private companies undertake
such transactions for profit; governments undertake them for profit and
for political reasons.[1] It refers to all those business activities which involves cross
border transactions of goods, services, resources between two or more nations.
Transaction of economic resources include capital, skills, people etc. for international
production of physical goods and services such as finance, banking, insurance,
construction etc.[2]

A multinational enterprise (MNE) is a company that has a worldwide approach to

markets and production or one with operations in more than a country. An MNE is often
called multinational corporation (MNC) or transnational company (TNC). Well known
MNCs include fast food companies such as McDonald's and Yum Brands, vehicle
manufacturers such as General Motors, Ford Motor Company andToyota, consumer
electronics companies like Samsung, LG and Sony, and energy companies such
as ExxonMobil, Shell and BP. Most of the largest corporations operate in multiple
national markets.

Areas of study within this topic include differences in legal systems, political

systems, economic policy, language, accounting standards, labor standards, living
standards, environmental standards,local culture, corporate culture, foreign exchange
market, tariffs, import and export regulations, trade agreements, climate, education and
many more topics. Each of these factors requires significant changes in how individual
business units operate from one country to the next.
The conduct of international operations depends on companies' objectives and the
means with which they carry them out. The operations affect and are affected by the
physical and societal factors and the competitive environment.

Operations

 Objectives: sales expansion, resource acquisition, risk minimization
Means

 Modes: importing and exporting, tourism and transportation, licensing and franchi
sing, turnkey operations, management contracts, direct investment and portfolio
investments.
 Functions: marketing, global manufacturing and supply chain
management, accounting, finance, human resources
 Overlaying alternatives: choice of countries, organization and control
mechanisms
Physical and societal factors

 Political policies and legal practices
 Cultural factors
 Economic forces
 Geographical influences
Competitive factors

 Major advantage in price, marketing, innovation, or other factors.

 Number and comparative capabilities of competitors
 Competitive differences by country
There has been growth in globalization in recent decades due to the following eight
factors:

 Technology is expanding, especially in transportation and communications.

 Governments are removing international business restrictions.
 Institutions provide services to ease the conduct of international business.
 Consumers know about and want foreign goods and services.
 Competition has become more global.
 Political relationships have improved among some major economic powers.
 Countries cooperate more on transnational issues.
 Cross-national cooperation and agreements.
Studying international business is important because:

 Most companies are either international or compete with international companies.

 Modes of operation may differ from those used domestically.
 The best way of conducting business may differ by country.
 An understanding helps you make better career decisions.
 An understanding helps you decide what governmental policies to support.
Managers in international business must understand social science disciplines and how
they affect all functional business fields.