How the international business is done

There are basically 3 different operating modes for doing international business, namely: 

1. Exports and imports of goods 

Companies can export or import goods or services. Most companies are more involved in export and import than in any other mode of international operation. This is especially true for small enterprises, although they are less involved in exporting than large enterprises (these have a greater ability to participate in other forms of foreign operations, in addition to export and import). Exports consist of sending goods (goods) out of the country; Imports consist of entering goods into the country. For most countries, exports and imports of goods are the main sources of international income and expenditure. 

2. Exports and imports of services 

Exports and imports of services generate international revenues that do not come from products. The company or individual receiving the payment performs an export of services; The company or the individual that pays carries out an import of services. Exports and imports of services take many forms, including: 

 2.1. Tourism and transportation. 
When nationals of one country visit another, they generally consume food and lodging of the latter, these expenses consist of exports of services to the second country and imports to the former. The same happens with the transport of people and goods, when using means from a different country, these processes are being carried out. 

 2.2. Performance of services. 
Some services generate income in the form of fees, for example, Disney, a US company, receives management fees for the management of theme parks in France and Japan. 

 2.3. Use of assets.
When companies allow others to use their assets, such as trademarks, relatives, copyright or contract experience, also known as license agreements or franchises, they receive income called royalties. 

3. Investments

Foreign investment means the possession of property abroad in exchange for a financial return, such as interest and dividends. Foreign investment acquires two forms: direct and portfolio.

 3.1. Direct investment.                                            A direct investment is that which gives the investor a controlling interest in a foreign company. This direct investment is a foreign direct investment (FDI). The control does not have to constitute 100% - and not even 50% -. If a company holds a minority stake and the rest of the property is very dispersed, no other owner can effectively oppose the company. When two or more companies share ownership of an IDE, the operation is a joint venture. When a government joins a company in an IDE, the operation is called a mixed company, which is a type of joint venture. Companies can choose an IDE as a way to access certain resources or reach a market. 

 
 3.2. Portfolio investment.                                  Portfolio investment is an uncontrolled interest of a company or the ownership of a loan to another party. A portfolio investment usually takes one of two forms: stock in a company or loans to a company or country in the form of bonds, certificates or promissory notes that the investor buys. Foreign portfolio investments are important to most companies that have extensive international operations. Companies use them mainly to obtain a short-term financial gain, that is, as a means that allows a company to make more money on their money with relative security. Company treasurers routinely move funds between countries to earn higher yields on short-term investments.