Concept, Meaning and Definition of International Business

Concept of International Business

Today business is growing globally and the need for profit is pushing a large number of business firms into world markets beyond their historical and traditional boundaries. A global corporation is gaining an increasing acceptance in the business community compared to corporations operating within the geographical limits of a country. These companies are termed as Multi National Corporations (MNC) or Trans National

Company(TNC). These companies operate on the principle that the world is their field of operations. For example. Shell, Unilever, Nestle, etc., operate on the philosophy of “global corporation”. They cannot be labeled as French or German or Dutch or Swiss company. These companies have no real domestic market. People of many different nationalities are managing and operating thesecorporationsonadaytodaybasis. Their products and services are sold around the world through their operating subsidiaries functioning in various countries.

International business involves transactions across the national boundaries. It  includes  the transfer of goods, services, technology, managerial knowledge and capital to other countries. Although business has been conducted on an international scale for many years, international business has gained more significance only in recent years because of the emergence of multinational corporations in some of the developing countries.

Meaning of International Business

International business denotes all those business activities which take place beyond the  geographical  limits  of  the  country.   It involves not only the international movements of goods and services,  but  also  of  capital  personnel,  technology  and intellectual property like patents, trademarks, know-how and copy rights.

Definition of International Business

Roger Bennet defines, International business involves commercial activities that cross national frontiers

According to John D. Daniels and  Lee H. Radebaugh, International business is all business transactions-private and governmental- that involve two or more countries. Private companies undertake such transactions for profits, governments may or may not do the same in their transactions.