International business refers to business activities that take place across national frontiers. Though many people use the terms international business and international trade synonymously, the former is a much broader term. International business is comprised of both trade and production of goods and services across frontiers.

International trade, comprising exports and imports of goods, has historically been an important component of international business. However, this is only one aspect and does not represent the complete scope of international business.

Of late, the scope of international business has substantially expanded. International trade in services such as international travel and tourism, transportation, communication, banking, warehousing, distribution and advertising has considerably grown. These activities form part of international business beyond just goods trade.

Another important development is the increase in foreign investments and overseas production of goods and services. Companies have started increasingly making investments into foreign countries and undertaking production of goods and services in foreign countries to come closer to foreign customers and serve them more effectively at lower costs.

To conclude, international business includes not only international trade (export and import of goods and services), but also a wide variety of other ways in which firms operate internationally, making it a much broader concept than international trade alone.