International business may be defined simply as business transactions that take place across national borders. Any business transaction between parties from more than one country is a part of international business. The buying and selling of goods, product or services across the national boundaries of a country are known as international business.
International trade is the exchange of goods and services between countries. This type of trade gives rise to a world economy, in which prices, supply and demand are affected by global events.
Different between International Trade and International Business –
International Business:
- Definition: International business is all commercial transaction private and government between two or more countries.
- Modes used: The modes used for international business are importing, exporting, tourism and transportation, licensing, franchising, turnkey operation, management contracts, direct and portfolio investment.
- Objectives: The major objectives of international business includes sales expansion, resource acquisition and risk minimization.
- Functions: International business involves global manufacturing and supply chain, management and other managerial functions.
- Transactions: International business includes all commercial transactions, private and governmental, between two or more countries. These transactions include sales, investments and transportation.
International business refers consists of a business transaction between parties from more than one country
International Trade:
- Definition: International trade is the transaction of goods and services between two or more countries.
- Modes used: The modes used for international trade is exporting and importing.
- Objectives: The major objectives of international trade involve sales expansion.
- Functions: International trade excludes global manufacturing functions and involves other managerial function.
- Transactions: International trade refers to the exchange of goods and services between two or more countries or their nationals.
Simply, International Trade refers to the exchange of products and services from one country to another.
