International business refers to transaction between parties from different countries. Sometimes business across the borders of different customs areas of the same country is also regarded as import and export, such as business between Hong Kong and Taiwan.
*International business involves more factors and thus is more complicated than domestic business. The following are some major differences between the two.
1). The countries involved often have different legal systems, and one or more parties will have to adjust themselves to operate in compliance with the foreign law.
2). Different counties usually use different currencies and the parties concerned will have to decide which currency to use and do everything necessary as regards conversion etc. Uncertainties and even risks are often involved in the use of a foreign currency.
3).Cultural differences including language, customs, traditions, religion, value, behaviour etc. often constitute challenges and even traps for people engaged in international business.
4). Countries vary in natural and economic conditions and may have different policies towards foreign trade and investment, making international business more complex than domestic business.
*With the development of economic globalisation, few people or companies can completely stay away from international business. Some knowledge in this respect is necessary both for the benefit of enterprises and personal advancement
