So I am trying to configure a virtual network and all is working fine but what I cannot seem to understand is that how does the virtualbox eth0 interface can by default ping my usb modem IP? I did traceroute and it shows only two nodes one with the ip of eth0 and other one, my modem. So how does virtualbox achieves this? I tried docs but couldn't find anything related to it or useful! My main purpose for asking this question is I want to configure on my host machine, a virtual interface say eth1 and configure it with a private ip address in such a way that instead of directly talking to my modem the virtual machine talks to eth1 and then eth1 in turn talks to my modem.

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VirtualBox default networking configuration is NAT. It is well explained in this chapter.

It is unclear what you want to achieve with the eth1 interface but you will likely have routing problems if you go that way.

I would suggest bridged networking instead if NAT is not suiting your needs for some reason.

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