Field of International Business

International Business is all commercial transactions -private and governmental- between two or more countries. Private companies undertake such transactions for profit; governments may or may not do the same in their transactions. These transactions include sales, investments and transportation.


Why should you study international business? A simple answer is that international business comprises a large and growing portion of the world’s total business. Today global events and competition affect almost all companies  -large or small- because most sell output to and secure supplies from foreign countries. Many companies also compete against products and services that come from abroad.


The conditions within a company’s external environment (the conditions outside a company as opposed to its internal ones) affect the way business functions such as marketing are carried out. These conditions are physical, societal and competitive. When a company operates internationally, it adds foreign conditions to its domestic ones making its external environment more diverse.


Even if you never have direct international business responsibilities, you may find it useful to understand some of its complexities. Companies international operations and governmental regulation of international business affect company profits, employment security and wages, consumer prices and national security. A better understanding of international business may help you to make more informed decisions, such as where you want to work and what governmental policies you want to support.