Answer:
International business occurs primarily through two ways: trade and foreign direct investment (FDI).
Trade is the exchange of goods and services between countries. It involves the movement of goods and services across international borders, either through exports (goods or services produced in one country and sold to another) or imports (goods or services produced in another country and bought by the importing country). International trade can take place through a variety of channels, including trade agreements, tariffs, quotas, and non-tariff barriers.
Foreign direct investment (FDI), on the other hand, involves a company from one country making a physical investment in another country, such as building factories or acquiring assets. FDI can take various forms, including mergers and acquisitions, joint ventures, and greenfield investments. FDI typically requires a significant capital outlay and a long-term commitment to the host country.
Both trade and FDI contribute to the growth of international business by facilitating the movement of goods, services, and capital across borders. They also create opportunities for companies to expand their markets, diversify their operations, and tap into new sources of raw materials, labor, and expertise. However, they also come with risks and challenges, such as political instability, regulatory barriers, and cultural differences that can affect the success of international business transactions.