International business and the crisis

Purpose The purpose of this paper is to highlight the effects of the financial crisis on international business. Design/methodology/approach The paper argues that international business is differentiated by line of business and country of operation. Findings The crisis will therefore affect international business according to how exposed such business is to international finance. Alongside the financial implications of the crisis, falling investment will reduce profits and liquidity in all business sectors. Originality/value The most original feature of the paper is an argument that recent developments in international business have been led by financial market inflation, rather than by the autonomous managerial strategies of international businesses.