30 Questions
What is the key characteristic of global companies in terms of marketing?
They use the same coordinated image/brand in all markets.
How do transnational companies differ from global companies in terms of decision-making?
Transnational companies give decision-making powers to individual foreign markets.
What key factors do global companies emphasize in their strategy?
Volume, cost management, and efficiency.
What is the main driver for the evolution of international business after the post-1990s period?
Greater fillip to international business.
How does the term 'international business' differ from 'international trade'?
International business includes activities beyond trade, such as investment and management.
From which term did the concept of 'international business' emerge?
Export marketing.
What are some of the particular problems and opportunities that emerge in international business?
Foreign legal systems, foreign exchange markets, cultural differences, and different rates of inflation
What is the distinguishing feature of international business compared to domestic business?
International firms operate in highly uncertain environments with ambiguous rules subject to rapid change.
Why do companies engage in international business?
To expand sales and acquire resources.
What is the relationship between increased sales and higher profits in international business?
Higher sales in international business lead to higher profits due to economies of scale.
How do manufacturers and distributors benefit from engaging in international business?
They can acquire foreign capital, technologies, and information that can be used at home to reduce costs.
What are some of the motives for a company's expansion into international business?
Increased sales and acquisition of resources.
What is the main focus of International Business?
The main focus is on purchasing and selling goods, commodities, and services outside national borders.
What are some examples of sectors involved in International Business?
Examples include manufacturing, mining, construction, agriculture, banking, insurance, health, education, transportation, and communication.
Why do private companies often participate in International Business?
Private companies participate to maximize profit.
What are the different options available for conducting business in International Business?
Options include exporting goods, providing manufacturing licenses in host countries, and forming joint ventures.
How has International Business contributed to global interconnectedness?
It has formed networks of global links that bring nations, institutions, and financial markets together.
What is the overall impact of technological advancements on International Business?
Technological advancements have made the world smaller, enabling faster business transactions.
What are some benefits of international business for nations?
Encourages a nation to obtain foreign exchange, prompts specialization in production, enhances development prospects, creates employment opportunities.
How does international business benefit firms?
Improves profits by selling in high-cost nations, utilizes surplus resources, increases profitability.
What major contributory factor has expanded connections and business relationships among countries?
World Trade Organization established by various nations' administrations.
How does international business help in improving the standard of life for individuals?
By making it comfortable for individuals to utilize commodities and services produced in other nations.
Why is the utilization of resources done wisely in international business?
To meet demand without wastage.
What is one way in which international business helps a country enhance its development prospects?
By creating employment opportunities.
What is one language-related challenge faced by international marketers?
Different meanings of the same words or terms in different countries
How can differences in marketing infrastructure impact international marketing?
Availability and nature of marketing facilities vary widely between countries
What is a significant problem faced by international marketers in relation to trade?
Trade restrictions, particularly import controls
How does distance impact the costs in international marketing?
High transport costs and longer delivery times
Why is it important for international marketers to understand differences in trade practices?
Trade practices and customs may differ between countries
Where can the content related to international business be found?
International Business by Rai Technology University Campus
Study Notes
International Business
- International business involves purchasing and selling goods, commodities, and services outside national borders.
- It can be owned by state or privately owned organizations, exploring trade opportunities outside domestic borders to extend business activities.
- International business includes commercial transactions between two or more nations, involving movement of goods, skills, resources, and services.
Characteristics of International Business
- Involves trade beyond national borders.
- Includes multiple options, such as exporting goods and services, providing licenses, and opening joint ventures.
- Global companies invest and operate in many countries, marketing products through a coordinated image/brand.
- Emphasis on volume, cost management, and efficiency.
Evolution of International Business
- Business across borders has existed since ancient times, initially limited to international trade.
- Post-World War II period saw an expansion of national companies into international or multinational companies.
- The term "international business" emerged from "international marketing" in the 1990s.
Nature of International Business
- Focuses on problems and opportunities arising from operating in multiple countries.
- Examples: Foreign legal systems, foreign exchange markets, cultural differences, and different rates of inflation.
Goals and Influences of International Business
- Companies engage in international business to expand sales, acquire resources, and increase profits.
- Challenges include differences in language, marketing infrastructure, trade restrictions, high costs of distance, and differences in trade practices.
Benefits of International Business
- Benefits to Nation: Encourages foreign exchange, promotes specialization, enhances development prospects, and creates employment opportunities.
- Benefits to Firms: Improves profits, utilizes surplus resources, and increases profitability.
Globalization and International Business
- Globalization has brought nations, institutions, financial markets, and living standards together through technological advancements.
- The World Trade Organization has contributed to expanded connections and business relationships among countries.
Learn about the purchasing and selling of goods and services outside national borders, exploring trade opportunities and extending business activities internationally.
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