Evolution Of International Business.
                     EVOLUTION OF 
INTERNATIONAL BUSINESS
Introduction
• International business consists of transactions that are formulated and carried out across 
national borders to satisfy the objectives of individuals, companies, and organizations.
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International business
• International business means collective description of commercial transactions that 
occurs between two or more nations beyond the boundaries of the home nation. Very 
often private companies are part of these transactions in order to incur maximum profit. 
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FEATURES OF INTERNATIONAL BUSINESS
Operations in large scale
• First goods are distributed in local market and then they are distributed in to foreign 
market which is termed as exports. All operations such as marketing and productions are 
carried out on massive scale.
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Integration of economics
• Economies of several countries are combined in international business. It happens as 
resources are used from several countries and the production, designing and assembly of 
the product happens in various parts and in different countries.
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Developed countries and MNCs are dominating the 
market
• Developed countries like U.S has the power to regulate the activities. Multinational 
Corporations are significant player; and are considered as the business that has direct 
investment.
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Benefits to participating countries
• Developing countries are benefited with legal assistance and also help to diversify their 
network which enables to avoid exploitation of the resources of those countries.
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Technology
• Technologies are playing vital role international business, globalization takes place due to 
shrinking of distance consequently as it is easy to bring together seller and buyer within a 
second any where around the globe.
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Need of International Business
• Need of employment opportunities.
• Allocation of resources, global level activities shift, allotment of preferential choices to 
global level.
• Requirement of acquisition and mergers for product variety.
• Need of labor. Technology and capital at lower cost.
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Advantages of international Business
• It enables the firm to utilize new market opportunity.
• Utilization of resources like raw material and labor at lower prices.
• Local business has become less vulnerable as international market allows the firm to get 
diversified.
• It also enables foreign direct investment.
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