What defines international business?

International business is defined primarily by its engagement in production or distribution activities that transcend national borders. This global perspective is what differentiates international business from domestic business, which is confined to a single country's economic activities.

When a company operates on an international scale, it navigates various factors, including cultural differences, legal regulations, currency exchanges, and international trade agreements, which shape its operations and strategies in multiple countries. This cross-border aspect allows companies to leverage diverse markets, access new consumer bases, and optimize resources that are not limited by geographical constraints.

The other options do not capture the essence of international business effectively. Conducting business exclusively within one country pertains to domestic business operations. Focusing solely on local market opportunities limits the scope of potential customers and geographic reach that international business aims to exploit. Lastly, regional business expansion, while important, does not encompass the full breadth of international business, which can involve global operations beyond just one specific region.