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International business signifies the business activities performed across national boundaries and there are primarily five fundamental activities involved. It is also referring to cross-border transactions between different businesses, individuals, and also governmental entities.
Importing is all about bringing products and services into a country from another country, whereas exporting is all about marketing different products and services in a different country. Both import and export are the fundamental activities of international business and most businesses adopt such aspects while intending to expand their business in foreign countries.
Licensing is another way for expanding the business abroad, in this, the licensor allows other entities to use its brand name, patent, technology, and copyright for a fixed period.
Franchising is related to licensing where the parent company offers the rights to another business using the parent company’s name and products & services. It is the understanding between the franchisor and franchisee. The primary difference between franchising and licensing is the stricter rules involved with the former.
A strategic partnership is the collaboration of two or more businesses of different countries with an intention of mutual benefits. On the other hand, a joint venture is a calculated agreement where the business partners across the world institute a company for producing goods and services.
FDI is all about the physical investment of the businesses in terms of establishing different facilities abroad and working similarly to other domestic businesses. The primary objective of FDI is to get benefitted by availing minimal labor costs and tax exemptions.
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