Which option best defines internationalisation?

• A. A reduction in global trade
• B. Increasing activity within the international market by business
• C. Increasing intra-country production
• D. Limiting cross-border investment

Answer: (B)

Expanding a business beyond its home country to operate in international markets is what internationalisation is all about. It means increasing activity outside the domestic market—selling abroad, setting up foreign operations, licensing, forming joint ventures, or other ways to engage with customers and supply chains across borders. The option that says this captures the essence of internationalisation best: it describes growing presence and activities in international markets rather than staying entirely domestic or pulling back from cross-border activity.

Why the other directions don’t fit: a reduction in global trade would shrink cross-border exchange, not expand it; increasing intra-country production stays within one country’s borders and doesn’t involve international engagement; and limiting cross-border investment reduces the firm’s international footprint rather than extending it.