International Business is the carrying of business activities beyond national boundaries. It is an extension of domestic business, which includes the transactions of economic resources such as goods, capital and services comprising of technology, skilled labour, transportation etc. It includes not only international trade of goods and services, but also foreign investment.
IB has gained wide popularity, because of the growing rate of multinational enterprises. During the last-three decades, the field of modern International business began to develop. Today, it has become a separate field of study in the management courses.
The Reasons to study IB are -
(i)Almost all of the large enterprises in developed countries are international in character.
(ii)Due to economic liberalisation and globalisation, immense international Business opportunities have been created.
(iii)The manager needs to have knowledge about IB for managing complexities and understanding the various facets of carrying IB.
(iv)Public policy issues are very often related to international trade, investment and finance.
(v)No country, today, can neglect the foreign trade sector, when drawing up its economic policies.
(vi)Perfect and prior knowledge of IB, keeps the young minds prepared to accept jobs in MNCs.
(vii)Competitive environment are typically industry specific and industries today are very often competitive internationally.