International: Overview, definition, and example
What is international?
"International" refers to anything that involves two or more countries. In a business context, it typically describes transactions, agreements, or operations that cross national borders. For example, when a company from one country does business with or provides goods and services to customers in another country, this is considered international business. International agreements may involve trade, mergers, partnerships, or even contracts between companies from different countries.
The term "international" helps distinguish activities that go beyond local or national boundaries and involve global reach or cooperation between countries.
Why is international important?
The term "international" is important because businesses today are increasingly operating on a global scale. Expanding into international markets allows companies to reach more customers, access new resources, and diversify their operations. However, international business also comes with challenges, such as differences in laws, regulations, languages, and cultures. Understanding the term "international" in this context is crucial for navigating cross-border operations and agreements successfully.
For companies expanding or doing business internationally, having a clear understanding of international laws and practices ensures that operations are legally compliant and that the business can thrive globally.
Understanding international through an example
Imagine a company based in the United States that sells products to customers in Europe and Asia. This company is conducting international business because it is selling and shipping goods across different countries. The company might need to deal with international shipping laws, tariffs, and currency exchange rates.
Another example could be a multinational corporation that has branches in several countries, such as a French company operating in Canada and Brazil. This company must comply with the legal and business regulations of all the countries it operates in, making its operations inherently international.
An example of an international clause
Here’s how an international clause might look in a contract:
“The parties agree that any disputes arising under this Agreement shall be governed by international arbitration rules and will be settled in accordance with the laws of [insert country], with the venue for arbitration located in [insert city, country].”
Conclusion
The term "international" refers to any activity, agreement, or operation that involves two or more countries. It is especially important in business because many companies are expanding globally, reaching new markets, and working across borders. By understanding international laws, practices, and the associated challenges, businesses can successfully navigate the complexities of operating globally and ensure that their international dealings are smooth and legally compliant.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.