International Business and Trade Overview
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Questions and Answers

Which of the following best describes international trade?

  • A local exchange of goods and services.
  • An extension of production, exchange, and consumption among different countries. (correct)
  • A simple transaction involving one country only.
  • A process limited to exports without imports.

    • What is a common form of complex operations in international business?

  • Joint ventures or realization of joint operations. (correct)
  • Individual entrepreneurial ventures.
  • Only online retailing.
  • Import substitution.

    • Which of the following is NOT included in the elements of international trade?

  • Manufacturing within a single country. (correct)
  • Production.
  • Exchange.
  • Consumption.

    • Direct investments in international trade typically involve which of the following?

    <p>Investment in foreign markets by a company.</p> Signup and view all the answers

    What aspect of international trade is emphasized in duty-free zones?

    <p>Facilitation of trade without import duties.</p> Signup and view all the answers

    What defines aggressive export marketing?

    <p>Developing strategies that create a clear picture of the company’s plans.</p> Signup and view all the answers

    Which term describes exports carried out with the help of intermediaries?

    <p>Indirect export</p> Signup and view all the answers

    What role do representative agents typically fulfill in export activities?

    <p>They negotiate on behalf of the exporting company.</p> Signup and view all the answers

    Which of the following statements about passive export is correct?

    <p>It relies on expected orders from foreign buyers.</p> Signup and view all the answers

    What primary function do foreign distributors perform?

    <p>They take products from exporters and manage aftersales services.</p> Signup and view all the answers

    How can exporters find foreign agents or distributors?

    <p>Through trade associations or chambers of commerce.</p> Signup and view all the answers

    What is a key advantage of direct exporting?

    <p>Control over the logistics and movement of goods.</p> Signup and view all the answers

    Which of the following is NOT a typical source for finding foreign agents?

    <p>Social media influencers</p> Signup and view all the answers

    What is the primary focus of international business?

    <p>Facilitating the transfer of goods and services across borders</p> Signup and view all the answers

    Which of the following is NOT a component of international business?

    <p>Local business expansion</p> Signup and view all the answers

    Which of these professions is likely to be involved in international business?

    <p>A tax accountant specializing in international regulations</p> Signup and view all the answers

    What is one of the activities included in international business?

    <p>Exporting goods to foreign markets</p> Signup and view all the answers

    In the context of international business, what is meant by 'transfer of resources'?

    <p>Moving workforce between countries</p> Signup and view all the answers

    Who among the following authors worked on the publication related to international business?

    <p>Vesna Grozdanovska</p> Signup and view all the answers

    Which of the following is a key characteristic of international business activities?

    <p>Involves interactions between different cultures</p> Signup and view all the answers

    What role does the transfer of technologies play in international business?

    <p>It facilitates innovation and competitive advantage</p> Signup and view all the answers

    Signup and view all the answers

    Study Notes

    International Business and Trade

    • International business encompasses all commercial activities across national borders, such as the transfer of goods, services, resources, people, ideas, and technologies.
    • International business takes various forms, including exporting/importing, licensing, franchising, and establishing manufacturing or sales facilities in foreign markets.
    • International trade is the exchange of goods and services between nations.
    • All countries need goods and services, but each has limited resources, necessitating trade to meet demands.
    • Countries export to utilize surplus creation and import to fulfill unmet demands.

    Globalization of International Business

    • Globalization involves increased global interconnectedness and interdependence in economic, social, technological, cultural, political, and environmental spheres.
    • Globalization is associated with the increased flow of goods and services, capital, labor, and knowledge across borders.
    • Key aspects of economic globalization include:
      • Increase in national income per capita.
      • Increased employment opportunities.
      • Rise in direct investment.
      • Technological advancements due to international research and development.

    International Market Traits

    • International markets vary significantly based on cultural nuances, demographics, consumer preferences, political regulations, and competition levels.
    • Market size, population demographics, demand, purchasing behavior, production costs, and regulatory frameworks influence market competitiveness.
    • Protective measures like tariffs or regulations control market entry of goods and services.

    International Trade Systems

    • International trade regulations and organizations like the WTO help manage and promote global trade exchanges.
    • The WTO oversees trade agreements between countries to facilitate free movement of goods and services globally.
    • International cooperation and trade agreements are crucial for international business activities.
    • National legal frameworks and policies impact trade relations between entities.

    Establishing International Business

    • Exporting, using intermediaries, joint ventures, or direct investment establish international business.
    • Exporting (direct/indirect): The seller sends or sells goods to customers in a foreign country.
    • Direct: The seller engages directly in selling to foreign buyers.
    • Indirect: The seller uses an intermediary (agents/brokers) to sell to foreign buyers.
    • Joint ventures: Two or more sides work together to accomplish goals and make profit.
    • Foreign direct investment (FDI): Investments in another country with the intention of creating operational capability.

    International Trade

    • International trade encompasses the exchange of goods and services between nations.
    • The basic elements of international trade are production, exchange, and consumption.
    • Globalization and interdependence are factors influencing international trade.

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    Description

    This quiz covers key concepts of international business and trade, emphasizing the importance of cross-border commercial activities. It also explores globalization and its impact on economic interconnectedness and resource exchange among nations.

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