Reason for International Business

• Uneven Distribution of Natural Resources: Due to unequal distribution of natural resources, all countries cannot produce goods at a low cost. As a consequence, it has an impact on their productivity levels. Therefore, the countries with less quantity of a natural resource either purchase the resource or the actual product itself from the countries with an abundance of these. For example, crude oil is exported from the USA as it is found in abundance there. 
• Availability of Productivity Factors: The numerous production variables, like labor, capital, and raw materials, that are required to produce and distribute diverse commodities and services are found in different quantities in different countries. It gives rise to buying and selling of productivity factors among the countries. For example, due to unemployment in India, foreign countries can employ labor at chap rates from India. 
• Specialization: Some countries specialize in producing goods and services for which they have advantages such as education, favorable climatic circumstances, and so on. It results in the business between different countries for the purchase and sale of specialized products. For example, the Indian market specializes in handcraft products which increases its exports to other countries. 
• Cost Advantages: Production costs vary according to geographical, political, and socioeconomic situations in different countries. Some countries are in a better position to manufacture certain commodities at a lower cost than others. Firms participate in international trade to purchase products that are cheaper in other countries and to sell things that they can supply at a lower cost. For example, China sells various goods at a low price to different countries all over the world because of the cost advantage. 

International business refers to those business activities that take place beyond the geographical boundaries of a country. It involves not only the international movements of goods and services but also capital, technology, IP like patents, trademarks, copyright, etc.  
For example, India selling agricultural products to foreign countries is an international business. Advancements in technology and better communication facilities have increased international business with great success in various countries. International business provides a wide market range to organizations and gives them an opportunity to satisfy the needs of customers all over the world.