These entities engage in commerce that transcends national borders, offering products and services to consumers and businesses located across the world. This can range from a small business exporting handcrafted goods to a multinational corporation operating manufacturing facilities and retail outlets in numerous countries. An example would be a company based in the United States that sells its software subscriptions to customers in Europe, Asia, and South America.
Engaging in international trade can significantly expand a company’s potential market reach, leading to increased revenue and diversification of customer base. It also provides opportunities to leverage different economic conditions, access specialized resources or expertise, and build brand recognition on a global scale. Historically, the growth of these operations has been facilitated by advancements in transportation, communication technologies, and the reduction of trade barriers.
