In a world where boundaries between countries can, at times, seem insignificant, international business is the driving force behind this sense of interconnectedness. When at least two nations, countries, or regions participate in business transactions, whether in the governmental or private sectors, it is said to be an example of international business. Governments often engage in international business transactions for either profit or political purposes; private sector international business transactions are almost exclusively done for profit. These transactions can involve goods or services; the resources involved can be information, people, or capital.
When companies have vested interests in numerous countries, they are said to be a multinational enterprise; these brands are often recognized around the globe and have become a ubiquitous part of our shared culture. International business does not only impact the financial activities of the public and private sector. Instead, international business has repercussions in the political, sociological, legal, economic, cultural, and educational sectors, among others. When two or more countries interact, cultural transactions can take place through the movement of a product to another region, linguistic changes can emerge from new words and terms being added to a regional lexicon, and quality of life can be markedly changed for the positive or the negative based on the interactions of these various corporate entities.