Question

International business is a broad and potentially complex field of study and practice. There are many different definitions and concepts that are critical to this field, and this activity will emphasize several of the most critical ones that are used throughout the text. Understanding these terms and concepts will help students, managers and policy makers to better understand what international business is, how it differs from domestic business? why it is becoming increasingly important? and how international business has evolved throughout history?

Answer 1

Explanation:

International business can be defined as the expansion of the activities of a certain company, such as its goods and services, technologies, resources, ideas and other variables beyond national borders.

Internationalizing business activities is increasingly common in a globalized economic society, where companies seek to expand to locations that present opportunities to gain market and facilities for the implementation of the company. Many countries have favorable conditions to encourage the entry of foreign companies, such as red tape, government agreements, cheap labor, tax cuts, etc.

One factor that contributed to the internationalization strategy becoming a common practice by large companies was technological innovations, which made it possible to shorten logistical distances by means of efficient and faster means of transport, and another example was also the creation of the internet, which streamlined communication by making processes faster and easier.