INTERNATIONAL BUSINESS

I M B A , II SEMESTER, UNIVERSITY OF MADRAS

2016

Dr. T M KUTHUBUDEEN

M B A EPARTMENTMOHAMED SATHAK COLLEGE OF ARTS AND

SCIENCE,CHENNAI-119Dr T M K 1

INTRODUCTION

Definition of International Business

International Business = Business transactions crossing national borders at any stage of the transactionsAccording to Daniels and Radebaugh , “International Business is defined as all business transactions that involve two or more countries”.

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According to Toyne’s International Business involves the exchange of goods and/ or services across or within national boundaries between two or more social actions in different countries for commercial reasons.

International Business is an exchange process involving relationships,inputs and outputs, between social actions located in different countries.

International Business may be influenced by non-commercial (social and political) considerations

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Nature of International Business

1. Involvement of Commercial ActivityImporting and exporting of goods and services, capital, employees and technology, patents ,trade Marks and copy Rights ,Licensing and franchising2. Involvement of Two Countries3.Language Difference4.Many BasesUnequal distribution of natural resources, varied cost of production5.Comparative More Physical Risk6.Surrounded with Political Risk7.Proactive or Reactive8.Government Intervention9.Payment in Foreign Currency10. Different from Domestic Business

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