International business refers to the exchange of goods, services, technology, capital, and knowledge across national borders. It involves trade, investments, joint ventures, and strategic alliances between countries, companies, or individuals. The objective is to expand markets, increase profitability, and achieve competitive advantage globally. International business is influenced by cultural, political, legal, economic, and technological factors, requiring companies to adapt strategies to diverse environments while managing risks and opportunities in the global marketplace.
🌍 Global Trade Dynamics
- U.S. Tariffs on Pharmaceuticals and Heavy-Duty Trucks
On September 25, 2025, President Donald Trump announced new tariffs set to take effect on October 1. The measures include a 100% tariff on branded medications not yet manufactured domestically, a 25% tariff on heavy-duty trucks, and up to 50% tariffs on various types of furniture. These tariffs aim to protect U.S. manufacturing and national security but have raised concerns about rising consumer prices and potential disruptions in industries reliant on international suppliers.
- EU’s Strategic Trade Expansion in Asia
The European Union is working to finalize trade agreements with the Philippines, Thailand, and Malaysia by 2027, following a recent deal with Indonesia. This initiative is part of the EU’s broader strategy to strengthen economic ties with ASEAN nations, aiming to enhance stability and predictability amid global uncertainties. The agreements are expected to bolster the EU’s presence in Southeast Asia, characterized by a rising middle class and resource-rich markets.
💼 Business Case Studies
- Aluminium Cyclo Enterprises (ACE) – Supply Chain Disruption
In 2024, Aluminium Cyclo Enterprises (ACE) faced challenges due to the European Union’s export rules for ferrous and non-ferrous scrap. The company had to navigate these regulatory changes to maintain its supply chain integrity and continue operations effectively. This case highlights the importance of adaptability and proactive risk management in international business. Harvard Business Review
- Ferrari – Navigating the Luxury Market
Ferrari’s performance in 2025 mirrored trends in the broader luxury goods sector, buoyed by rising global wealth and demand for high-end products. However, during the global recession of 2008-2009, demand had significantly declined. The company’s ability to adapt to changing economic conditions and consumer preferences underscores the significance of strategic foresight in sustaining business success.
- Cummins Inc. – Energy Transition Strategy
Cummins Inc., a global leader in transportation systems, is navigating a complex energy transition guided by its “Destination Zero” strategy. This initiative aims to reduce the company’s carbon footprint and adapt to the evolving energy landscape, reflecting the growing emphasis on sustainability and innovation in the global business arena.
📉 Economic Outlook
- Global Growth Projections
The International Monetary Fund (IMF) projects global growth at 3.0% for 2025 and 3.1% in 2026, an upward revision from previous forecasts. This improvement is attributed to factors such as lower effective tariff rates, better financial conditions, and fiscal expansion in some major jurisdictions. However, growth remains fragile, with risks including trade restrictions and policy uncertainty. IMF
- U.S. International Transactions
In the second quarter of 2025, U.S. exports of services increased by $2.1 billion to $301.6 billion, driven by gains in financial services and charges for the use of intellectual property. Imports of services rose by $2.8 billion to $222.0 billion, reflecting increases in business services and telecommunications. These figures indicate a dynamic and interconnected global economy.
🌐 Geopolitical Tensions and Trade Wars
- U.S.–India Diplomatic and Trade Crisis
In August 2025, U.S.–India relations entered a period of acute tension following a sharp escalation in trade and diplomatic disputes. The Trump administration imposed sweeping tariffs on Indian exports, initially a 25% “reciprocal” tariff, followed by an additional 25% penalty tied to India’s continued imports of Russian oil, bringing the total duty to a staggering 50%. India strongly denounced the measures as “unfair, unjustified and unreasonable,” asserting that its energy policy and supply chains are independent and grounded in its strategic autonomy. The crisis deepened when reports emerged suggesting India had paused major defense procurements from the U.S., though the Indian Defence Ministry swiftly denied these claims as “false and fabricated,” emphasizing that existing acquisition processes remain on track.
- United States–Canada–Mexico Trade War
On February 1, 2025, a trade war between the U.S., Canada, and Mexico began when the U.S. imposed near-universal tariffs on goods from the two countries entering the United States. The order called for 25% tariffs on all imports from Mexico and all imports from Canada except for oil and energy, which would be taxed at 10%. Canada and Mexico responded with retaliatory tariffs, escalating tensions and disrupting trade relations within the region.
🚀 Emerging Frontiers
- Space: A New Frontier for International Business
The exploration of outer space presents unique challenges and opportunities for international business. Characterized by extreme physical conditions, ambiguous property rights, and an institutional vacuum, space disrupts conventional business theories. Companies venturing into this domain must navigate these complexities to capitalize on the potential of space-related industries.