Question

What is the scope of International business?

Answer 1

International trade involves imports and exports of goods and services. When something that is produced in one country is sold to another country in exchange for money, it is called export. When a country buys something from another country, it is called import. Hence, money flows into the economy in case of exports and flows out of the economy in the case of imports.

Another way in which firms enter foreign markets is by making investments to undertake production of goods and services in a foreign country so that they can serve the foreign customers better. This is called foreign direct investment.