International business encompasses all commercial activities that take place to promote the transfer of goods, services, resources, people, ideas and technologies across national borders. International business takes many different forms and refers to the movement of goods from one country to another (export, import, trade), contractual agreements that allow foreign companies to use products, services and processes from other countries (licensing, franchising), the formation and operations of sales, production, research and development and distribution facilities in foreign markets. International trade is the exchange of capital, goods and services across international borders or territories. It is the exchange of goods and services among the peoples of the world. All countries need goods and services to satisfy their people. The production of goods and services requires resources. Each country has limited resources; therefore the state alone cannot produce all the goods and services it needs. Necessary goods that cannot be produced or the quantity is insufficient as needed, need to be provided from other countries. Similarly, countries sell their products to others when the production of goods comes in surplus quantities in demand in the country.