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International Business is only an extension of and a variation

on domestic business.
ASHHAR AZIZ
WHAT IS BUSINESS?
A business is an economic activity related to continuous buying and
selling of goods and services for satisfying human wants. A business is
an organisation involved in the trade of goods and services or both to the
customers. Todays business carries a complex area of commerce and
industries which includes the activities of both production and
distribution of goods services. To the enterprises business is related with
the decision of WHAT TO PRODUCE? WHEN TO PRODUCE?
WHOM TO PRODUCE? WHERE TO PRODUCE?
In simplest word we can say that the modern times business is very
much complex. Stephenson defines business as, the regular production
or purchase and sale of goods undertaken with the objective of earning
profit and acquiring wealth through the satisfaction of human wants.
WHAT IS INTERNATIONAL BUSINESS?

International business means the buying and selling of the goods and
services across the border. These business activities may be of
government or private enterprises. Here the national border are crossed
by the enterprises to expand their business activities like manufacturing,
mining, construction, agriculture, banking, insurance, health, education,
transportation, communication and so on. A business enterprise who
goes for international business has to take a very wide and long view
before making any decision, it has to refer to social, political, historical,
cultural, geographical, physical, ecological and economic aspects of the
another country where it had to business. International business by its
nature is a primary determinant of international trade, one of the results
of the increasing success of international business ventures is
globalization
International Business is the process of focusing on the resources of
the globe and objectives of the organisations on global business
opportunities and threats. International business is defined as global
trade of goods/services or investment.
DIFFERENCE BETWEEN DOMESTIC AND

INTERNATIONAL BUSINESS:
Trade means exchange of goods and services for the satisfaction of
human wants. The process of exchange includes purchase of goods and
services and their sale. The trade may take place within geographical
boundaries of countries or may be extended to across the border. When
trade is confined to the geographical limits of a country, it is a domestic
or national trade. In national trade both the buyer and the seller are of the
same countries and they enter into trade-agreements subject to the
national laws, practices and customs of trade. But International or
foreign trade refers to the trade between two countries. Purchaser and
seller are citizens of two different countries and are subject to
International or bilateral laws of trade and tariffs. Technically, domestic
trade and international trade are more or less identical and are based on
the same basic principles of trades. There are certain similarities
between domestic and international business in terms of broad objectives
and goals of the company, namely:
Generating revenue.
Corporate image and brand building.
Customer satisfaction and building loyalty as patronage buyers.
Carrying out their operations by respecting and adhering to local
regulations.
Generation of employment opportunities.
Both are subject to a set code of conduct and ethics which includes
corporate governance.
INTERNATIONAL BUSINESS AS AN EXTENSION:

International Business is an extension to domestic business though the
marketing principles are same. But we can see that there is a difference
in customs and cultural factors with the change in the foreign
environment with the prevailing conditions of the market, because of
which the working conditions and management practices changes and
also due to the long distance the transaction time increases. So, in order
to prevent such time taking processes or conditions the MNCs have
perfected the principles, procedures, practices at International level and
also takes the advantages of location economies wherever the cheaper
resources are available.
INTERNATIONAL BUSINESS VARIATION ON

DOMESTIC BUSINESS:
As we know that International business consists of business transactions
between parties from more than one country. For example:
International business (IB) transactions include buying materials in one
country and shipping them to another for processing of assembly,
shipping finished products from one to other retail sale. Building a plant
in another finance operation in another. The parties involved in such
transactions may include private individual, individual companies, group
of companies and government agencies.
And also there are other numbers of factors /reasons which shows the
international business variations on domestic business are:
1. Countries involved may use different currencies forcing atleast one
party to convert its currency into another.
2. The legal system of countries.
3. The cultures of the countries may differ from each party to adjust
its behavior to meet expectations of the market.
4. The availability of the resources differs by the change in foreign
environment.

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International Business is only an extension of and a variation

WHAT IS INTERNATIONAL BUSINESS?

DIFFERENCE BETWEEN DOMESTIC AND

INTERNATIONAL BUSINESS AS AN EXTENSION:

INTERNATIONAL BUSINESS VARIATION ON

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