Business broadly refers to transactions ranging in complexity from the exchange of baseball cards between collectors to multinational policies setting protocols for imports and

exports between countries.

Money’s attribute as a store of value also assures that funds received by sellers as payment for goods or services can be used to make purchases of equivalent value in the future.

International trade not only results in increased efficiency but also allows countries to participate in a global economy, encouraging the opportunity of Filipino

Direct Investment (FDI).

A trade deficit represents an inflow of domestic currency to foreign markets. This may also be referred to as a negative balance of trade (BOT).

Trading is an economic activity often referred to as repeated buying and selling of commodities and availing of services for human satisfaction and gratification.

International business is an activity of buying and selling of commodities and manufacturing of goods (services) across national borders and at global and/or international scale.

According to the history of trading, the oldest route was probably from the Malabar coast or Syria up to the Persian Gulf.

In 1492, Christopher Columbus set sail with three ships namely, Nina, Pinta, and Santa Maria.

On June 24, 1497, Cabot spotted land and felt sure he had discovered a very quick route to India.

Samuel de Champlain was the one who wrote about his discovery of the Niagara Falls in Canada.

Cabot discovered and named one of the provinces of Canada which is Quebec.

The infamous triangular trade was participated by Europe, Canada, and Africa.

The first fur products are made from cat's fur.

The first trade didn't occur during the 15th century but instead during 1400's since the first to discover the fur are not the Europeans but only mere fishermen and travelers.

Countries and businesses nowadays are interconnected, they rely on each other on their economic and business transactions or in other words this is what we call "colonialism".

Nations trade because there is uneven distribution or availability of economic resources (land, labor, capital, and entrepreneurial abilities.

Nations trade because consumers have different preferences in terms of prices, quality, brands, and other attributes.

Nations trade to have an efficient production of goods and services which requires combination of the right resources and technologies.

The World Trade Organization was established on January 1994 to in order to facilitate the implementation, administration and operation and further the objectives of this agreement and on the Multinational Trade Agreements.

Regional Integration is the agreement among nations who belongs in the same region or area to reduce or eliminate trade barriers, increase market size aggregate demand for goods and services, and economic activity.

After World War II, advance countries, agreed to lower tariffs to promote free flow of goods through Global Agreement on Trade and Tariff (GATT).

Foreign Direct Investments are investments by foreign firms in establishing or acquiring business to another country.

MNC means Multi-National Corporations.

Economic and political risks can be lessened because risk is spread from different countries.

MNCs has the capacity to be able to produce larger quantities of outputs because they are able to reduce cost, ability to have experts and produce better quality of products.

There is a chance that MNCs can be able to explore and exploit new markets that are not yet tapped or discovered. As a result, they could be able to market their products at a higher price.

International trade provides a better flow of resources (land. labor, capital, entrepreneurial abilities). The excess supply resources could be used by other countries who needed it the most.

Other than economic benefits from international trade, countries also transform their social and cultural practices.

With international trade, slowly, borders are disappearing and different societies are becoming like a one small village.

Huge Foreign Indebtedness is the main reason that discourages businesses in going online.

Exchange Instability is the main reason that discourages businesses in going online.

With the establishment of WHO, entry requirements of domestic countries to MNCs are not followed.

Bribe and kickbacks discourage foreign firms to expand to new territories.

Before establishing a business in a foreign country, it is not a need to make research, market survey and other product improvement because it involves high cost and risk.

Bureaucratic practices of the government could cause delays in acquiring their permits and licenses.

Foreign firms need to maintain a product quality based on the standard of each country they operate in.

Copying the original technology, producing imitative products, discourages foreign firms in expanding their business.

Foreign firms could face problems in the domestic if they are not able to meet their standard.

These tariffs, quotas, and trade barriers are used to protect local firms. These barriers are imposed to countries depending on the countries political and diplomatic relationships.