I N T E R N AT I O N A L T R A D E A N D

PRACTICES

International
trade
business
Synopsis:

International Business:

 Meaning

 Definition

 Types of international business activities

Meaning:

 International trade business refer to the exchange of goods

and services between two parties of different countries.

International business may be understood as those business

transactions involves crossing of national boundaries.

 International business encompasses are commercial

activities that take transfer a goods, services, resources,

people, ideas, and technologies across national boundaries.

  The economics system of exchanging goods and services,

conducted between individuals and business in multiple

countries.

 A specific entity, such as a multinational corporation or

international business company that engages in business

among multiple countries.

Examples:

Apple, Coca-Cola,…
Definition:

 All commercial transaction including sales, investment,

and transportation that take place between two or more

countries.

 International business or marketing is defined as the

performance of business activities designed to plan, price,

promote, and direct the flow of a company’s goods and

services to consumers or users in more than one nation for

a profit. These marketing concept, processes, and

principles are universally applicable all over all world.

Ty p e s o f i n t e r n a t i o n a l b u s i n e s s a c t i v i t i e s

Turn key
Turn-key
project
project

Export-
Export – Foreign
Foreign
Import
Import Types of
Types of
direct
Direct
trade business investment
Trade business Investment

Franchising Management
Management
Franchising contracts
Contract
Types of international business activities:

 Turn-key project

 Export-Import trade

 Foreign direct investment

 Franchising

 Management contracts
Turn-key project:

 It is a contract under which a firm agree to fully

design, contract and equip of a manufacturing/
business/services facility and turn the project over to
the purchases when it is ready for operation.
 It refers to somethings that is ready for immediate
use, generally used in the sale or supply of goods or
services.
Export Import trade:

 The total imports, exports and balance of foreign

trade are presented as summaries of goods and
services. Exporting refers to the selling of goods
and services from the home country to a foreign
nation. Whereas, importing refers to the purchase of
foreign products and bringing them into one’s home
Foreign direct investment:
 Foreign direct investment (FDI) is When a
company takes controlling ownership in a
business entry in another country. With FDI
foreign companies are directly involved with day-
to-day operations in the other country. This means
they aren’t just beinging money with them but also
knowledge, skills, and technology.
Franchising:

 Franchising is a business relationship between

two entities where in one party allows another to
sell its products and intellectual property.

Example:
Dominos, KFC, Pizza Hut, Subway, Burger king.
 Management
contract

Management contract:

 A management contract is a contractual

arrangement for the management of a part or
whole of a public enterprise by the private sectors.

Example:
a specialized port terminal for container handling at a port or
a utility.
Importance of business:

 Increased social economic welfare

 It opens new opportunities

 It gives new technologies

 Optimum utilization of resources

 Provides quality products

 It helps in earning foreign exchanges

 High living standards