Difference between International Trade and International Business

What is International Trade?

The exchange of goods between different countries of the world is known as International Trade. International trade, comprising exports and imports of goods is an important component of international business. 

What is International Business?

Those business activities that take place beyond the geographical boundaries of a nation are called International Business. It involves movement of goods, services, capital, technology, intellectual property, like patents, trademarks, copyrights, etc. Foreign currencies are used in international businesses. Such types of businesses require heavy documentation and are subject to many formalities. It also involves a high degree of risk but helps a business to earn foreign exchange, utilise resources efficiently, and improve growth prospects and employment potentials. 

Difference between International Trade and International Business

International Trade and International Business are generally used synonymously, but they are not the same. The difference between International Trade and International Business are as follows:

Basis	International Trade	International Business
Meaning	The exchange of goods between different countries of the world is known as International Trade.	Those business activities that take place beyond the geographical boundaries of a nation, but also include movement of capital, personnel, technology and intellectual property, are called International Business.
Goods and Services	It includes only movements of goods.	International business includes goods and services such as international travel and tourism, transportation, communication, banking, warehousing, distribution and advertising.
Currency used	International Currency is used in case of International Trade.	International Currency of more than one country is used.
Scope	International trade has a narrower scope.	International business is broader than international trade and includes international trade.
Effect on Foreign Reserve	It has a direct impact on the foreign reserves of a country.	It also has a direct impact on the foreign reserves of a country.
Risk	It involves comparatively less degree of risk.	It involves a high degree of risk.

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