International business

International business refers to the trade of goods and service goods, services, technology, capital and/or knowledge across national borders and at a global or transnational scale. It includes all commercial activities that promote the transfer of goods, services and values globally. It may also refer to a commercial entity that operates in different countries.

International business involves cross-border transactions of goods and services between two or more countries. These transactions include economic resources such as capital, skills, and labor, all of which contribute to the international production of physical goods and services like finance, banking, insurance, and construction. International business is also known as globalization.

To conduct business overseas, multinational companies must bridge separate national markets into a single global marketplace. Two macro-scale factors drive the trend towards greater globalization. The first is the elimination of barriers, which makes cross-border trade easier (e.g. enabling the free flow of goods, services, and capital—commonly referred to as "free trade"). The second is technological advancement, particularly in communication, information processing, and transportation technologies.