Question

Write short notes of the following.

International Business.

Answer 1

International business refers to trade in goods and services along with the exchange of capital, technology, skills and patents across national boundaries. It includes all the trade and manufacturing activities that take place beyond national borders. International business consists of:
i. Trade in tangible commodities
ii. Trade in intangible commodities
iii. Allowing a foreign company to produce and sell goods using the logos and trademarks of the domestic company, in return for a fee (licensing and franchising)
iv. Making investments outside a country with the objective of earning returns (foreign investment)