Manufacturing and trading beyond the geographical boundaries of a country are known as international business. New modes of communication and development of faster and more efficient means of transportation have brought nations closer to one another as a result of which trade between them can take place. International business includes all activities that are implemented to improve and support the transfer of services, goods, ideas, people, resources, and technologies across the country's boundaries.
The international business study relates to understanding the results and consequences that are engaged with international trade, governments, companies, countries, domestic and foreign markets. It refers to the exchange of goods and services that functions between the countries. This chapter covers the most significant concepts – meaning of international business, the reason for international trade, international business vs domestic business, the scope of international business. Here topic's explanation makes us understand the meaning of Merchandise exports and imports, service exports and imports, licencing and franchising, foreign investments, tourism and transportation, business services, benefits of international business – benefits to nations, benefits to firms, modes of entry into international business, exporting and importing, contract manufacturing – merits and demerits, joint ventures, wholly-owned subsidiaries, India's involvement in world business – India's foreign trade in goods, India's trade in services.