International business can be defined as all private and government commercial transactions that take place beyond a country’s political border (Peng, 2013). It is the business done between countries or between individuals from different companies. Such commercial transactions include sales, purchases, transportation, and investments, For example, a company in the United States may supply computers to a nation in Africa.
A multinational enterprise is a corporation that produces goods or provides services in at least two countries (Peng, 2013). Their operations reach the people in countries other than their home country but are mostly done within a region. Such corporations may have offices of branches in the different countries within which they operate. For example, a corporation that carries out business within the Americas is a multinational enterprise.
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A global business is defined as a business that takes place all over the world and is done in most or all countries. Such businesses are conducted in all continents and not in a specified region. For example, a company that provides services for profit in Europe, the Americas, Asia, and Africa carries out international business.
Gross Domestic Product
Gross Domestic Product is defined as the total value of all the goods and services in monetary terms provided in a country within a period of one year (Peng, 2013). It is the total sum of value that individuals, firms, and the government add in an economy within a year's period. It determines the economic performance of the country over time, usually, one year.
Purchasing Power Parity
Purchasing power parity is the difference is the quantity of a given product that different currencies can buy (Dornbusch, 1985, Peng, 2013). It is a theory of determining the exchage rates between different currencies. The theory asserts that price levels of commodities in a given different countries determine the countries’ exchange rates.
Dornbusch, R. (1985). Purchasing Power Parity. Retrieved July 1, 2017 from: https://www.hks.harvard.edu/fs/jfrankel/ITF-220/readings/Dornbush-PPP-NBERWP1591.pdf
Peng, M. W. (2013). Global strategy . Cengage learning. Print