Overseas business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas, and technologies across national boundaries. Overseas business occurs in many different formats, that includes the movement of goods from country to another (exporting, importing, trade). It also includes contractual agreements that allow foreign firms to use products, services, and processes from other nations (licensing, franchising). The formation and operations of sales, manufacturing, research, and development, and distribution facilities in foreign markets also constitute it.
Participation in the overseas business allows countries to take advantage of their comparative advantage. The concept of comparative advantage means that a nation has an advantage over other nations in terms of access to affordable land, resources, labour, and capital. It also allows countries to take advantage of specialised expertise and abundant factors of production to deliver goods and services to the international marketplace. This has the benefit of increasing the variety of goods and services available in the marketplace. International business also increases competition in domestic markets and introduces new opportunities to foreign markets. The global competition encourages companies to become more innovative and efficient in their use of resources.
Marta Ruiz-Falco was a fourth-year international student from Madrid. She completed her first two years of college at the Catholic Institute of Business Administration, Northeastern’s partner school in the BSIB-Spain program, and is a candidate for a degree in International Business from both institutions. He noted that his dream job is to become a small-business owner and offered this reminder to anyone looking to break into the industry. “We may all come from different backgrounds,” he said, “but we’re all striving to accomplish the same goals.” Therefore, overseas business not only gives us business advantages but also avails us to grab a lot more opportunities for self-development.