Features of International Business
The following are the features of international business
International business can take place only when transactions occur across different countries
Where countries trade with one another, it has to exchange the goods and services on the basis of foreign currency.
Foreign trade is to be conducted strictly in accordance with the export and import policyofthecountryconcerned. Theconsent of the government is to be mandatorily obtained with reference to export and import of certain goods and services. Thus government intervention is direct in respect of international transactions.
International business imposes huge risks on the parties thereto due to long distances, fluctuation of value of currency, obsolescence, sanctioned, war, etc.,
International business necessitates fulfillment of a lot of formalities. Parties to international business have to execute a number of documents in the matters of conducting International business.
The economic environment of countries involved in international business differs significantly in terms of legal framework, institutional set-up, monetary fiscal and commercial policy, resources availability, production techniques, etc.,