The term international business refers to commercial activities performed to promote the transfer of technologies, goods, services, resources, people, and ideas across national boundaries. International business occurs under many different formats, from the movement of goods from one country to another (exporting and trade); to contractual agreements giving firms in foreign nations legal permission to use products, services, and processes from other nations (franchising, licensing, subcontracting production); to companies setting up sales, manufacturing, research and development, and distribution facilities in foreign markets. International business consists of all commercial transactions, -including sales, investments, and transportation- that take place between two or more countries. Private companies undertake such transactions for profit; governments may undertake them either for profit or political reasons.

International business by its nature is a primary determinant of international trade, one of the results on the increasing success of international business ventures is globalization. Trade helps to prevent conflict. International business essentially is about trade, and when people trade they are in contact with one another.

The study of international business helps students understand how and why technologies, goods, services, and ideas cross national borders, and what factors affect their acceptance (or rejection) in foreign markets. The flows of goods, services, technologies, resources, people, and ideas among markets have major effects on countries and their governments, companies, and individuals. Another key reason as to why study international business management would be that international businesses comprise a large and growing portion of the total businesses in the world today. Nowadays global events and competitions affect almost all companies, large and small, because most sell output to and secure supplies from foreign countries. Many companies also compete against products and services from abroad. It is therefore important for managers’ regardless of their industry or company size to need to see their activities from an international perspective.