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Differentiate between international trade and international business.

Answer:

Ans.     Difference between international trade and international business is similar to difference between trade and business.

1. The scope of international business is much wider than international trade. International trade means exports and imports of goods which is an important component of international business but international business includes much more than this.

2. International trade in services like travel and tourism, transportation, communication, banking, warehousing, distribution and advertising is a part of international business.

3. International business also includes foreign direct investments, contract manufacturing, and setting up wholly owned subsidiaries etc. which are not included in international trade.