International Business and Economics

International business consists of trades and transactions at a global level. These include the trade of goods, services, technology, capital and/or knowledge.

It involves cross-border transactions of goods and services between two or more countries. Transactions of economic resources include capital, skills, and people for the purpose of the international production of physical goods and services such as finance, banking, insurance, and construction. International business is also known as globalization. Globalization refers to the international trade between countries, which in turn refers to the tendency of international trade, investments, information technology and outsourced manufacturing to weave the economies of diverse countries together. To conduct business overseas, multinational companies need to separate national markets into one global marketplace. In essence there are two macro factors that underline the trend of greater globalization. The first macro-factor consists of eliminating barriers to make cross-border trade easier, such as the free flow of goods and services, and capital. The second macro-factor is technological change, particularly developments in communication, information processing, and transportation technologies.

"International business" is also defined as the study of the internationalization process of multinational enterprises. A multinational enterprise (MNE) is a company that has a worldwide approach to markets, production and/or operations in several countries. Well-known MNEs include fast-food companies such as: McDonald's (MCD), YUM (YUM), Starbucks Coffee Company (SBUX), Microsoft (MSFT), etc. Other industrial MNEs leaders include vehicle manufacturers such as: Ford Motor Company, and General Motors (GMC). Some consumer-electronics producers such as Samsung, LG and Sony, and energy companies such as Exxon Mobil, and British Petroleum. Multinational enterprises range from any kind of business activity or market, from consumer goods to machinery manufacture; a company can become an international business. Therefore, to conduct business overseas, companies should be aware of all the factors that might affect any business activities, including, but not limited to: difference in legal systems, political systems, economic policy, language, accounting standards, labor standards, living standards, environmental standards, local cultures, corporate cultures, foreign-exchange markets, tariffs, import and export regulations, trade agreements, climate, education. Each of these factors may require changes in how companies operate from one country to the next. Each factor makes a difference and a connection.

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