Are all commercial transactions that take place between two or more countries?

Australia is a stable, democratic and culturally diverse nation with a highly skilled workforce and one of the strongest performing economies in the world.

Australia in Brief publication

This is the 52nd edition of Australia in Brief, revised and updated in February 2021

1 International Business

2  International business comprises all commercial transactions that take place between two or more regions, countries and nations beyond their political boundaries.  It involve transactions of goods, services, resources between two or more nations and economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc.

3  The exchange of goods and services among individuals and business in multiple countries  A specific entity such as a multinational corporation or international business company that engages in business among multiple countries.

4  Large scale operations : In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale.  Intergration of economies : International business integrates (combines) the economies of many countries. This is because it uses finance from one country, labour from another country, and infrastructure from another country.

5  Dominated by developed countries and MNCs : International business is dominated by developed countries and their multinational corporations. They have highly skilled employees and managers because they give very high salaries and other benefits. Therefore, they produce good quality goods and services at low prices. This helps them to capture and dominate the world market.

6  Keen competition : International business has to face keen (too much) competition in the world market. The competition is between unequal partners i.e. developed and developing countries  Special role of science and technology : International business gives a lot of importance to science and technology. Science and Technology (S & T) help the business to have large-scale production. Developed countries use high technologies. Therefore, they dominate global business

7 Following factors are:-  Technology is expanding, especially in transportation and communications.  Government are removing international business restrictions.  institutions provide services to ease the conduct of international business.  Consumer want to know about foreign goods and services

8  Competition has become more global.  Political relationships have improved among some major economic powers.  Countries cooperate more on transnational issues.

9  Most companies are either international or compete with international companies.  Modes of operation may differ from those used domestically.  The best way of conducting business may differ by country.  An understanding helps you make better career decisions.  An understanding helps you decide what governmental policies to support.

10  Faster growth (business, greater opportunities)  Cheaper imports  New technologies  Increase of foreign competition  Increase consumer income  Increased investment opportunities:

11  Import of harmful goods Foreign trade may lead to import of harmful goods like cigarettes, drugs etc. Which may run the health of the residents of the country. E.g. the people of China suffered greatly through opium imports.

12  It may exhaust resources Internation trade leads to intensive cultivation of land. It also makes a nation poor by giving too much burden over the resources  Over Specialization Over Specialization may be disasterous for a country. A substitute may appear and ruin the economic lives of millions

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