The previous chapter deals with internal trade and various types of internal trade in detail. The present chapter presents the basic aspects of international business. It enlightens the students on the difference between internal trade and international business, types of international business, the advantages and disadvantages of international business. Let us first shed light on the meaning and definition of international business. India’s international trade is not of recent origin. The various pieces of literature bear enormous evidence about India’s foreign trade with other countries. Evidences about our international trade are found in the ancient literature of our country particularly in our Sangam Literature. There were regular Trade Routes across the seas to the distant Jawa and Sumatra islands in the east and up to the Arabian Peninsula in the west. But the volume of such trade was insignificant and continued to remain so small all through the middle ages and right up to the advent of the British rule in India. It is only after the establishment of the British rule in India that India’s foreign trade took a definite shape.
International trade has become inevitable after the second world war since no country remains self sufficient in terms of all natural resources available therein. In other words no country is currently functioning independently as a closed system.
Even the socialistic countries like U.S.S.R. China, etc., are now taking concrete steps to capture foreign markets for the product abundantly produced in their countries. International trade has become a part and parcel of our normal economic life of any country.