Global business is the buying and selling of goods and services among different countries. A domestic business conducts business in only one country. A multinational corporation (MNC) has ownership in operations in two or more countries.

The foreign company is commonly referred to as a foreign subsidiary or affiliate; in essence, a subsidiary is a company owned and controlled by another company, making up a combined company, called the holding or parent company. There is also a transnational company, a type of MNC that eliminates artificial geographical barriers without having a real single national headquarters.

Foreign trade is about conducting business with other countries, so managers need to understand trade barriers. Overall, foreign trade benefits business and countries, but it does create losers as well as winners, and it can also hurt. An embargo is a total ban on the importing of a product from one or more countries. This protects domestic companies and employees, as it stops foreign products from entering the home country.

Quota sets a limit on the number or volume of a product that can be imported or exported during a set period. Subsidies include government grants, loans, and tax breaks given to domestic companies. A tariff is a direct tax on imports to make them more expensive. This tends to increase the price of exports, making them above or closer to the price of domestic products.