International business refers to international transactions among countries. For example, Foreign direct investment, contract manufacturing, etc. It is a much broader concept than international trade. It involves the movement of goods, capital, personnel, technology, and intellectual property such as patents internationally. The 3 main advanatges of international business are:
a. An international business help a country to earn foreign exchange which can be later used for meeting its import requirements such as technology and capital goods.
b. b. It helps to use the natural resources in the most optimal way and avoid the wastage of resources. It ensures price stability by avoiding any fluctuations in it. It also tries to equalize the Global price.
c. c. It promotes a large scale production because the needs of the consumers are to be met locally as well as internationally. A large scale production also helps to ensure many internal economies which lead to a lower cost of production.
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