Podcast
Questions and Answers
What does international business refer to?
What does international business refer to?
What are the three major objectives of international business?
What are the three major objectives of international business?
Increasing sales, acquiring resources & knowledge, reducing risk
Why do organizations engage in international business?
Why do organizations engage in international business?
To increase sales, acquire resources & knowledge, and reduce risk
International business involves only local market trades.
International business involves only local market trades.
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Organizations engage in international business to acquire ______ and knowledge.
Organizations engage in international business to acquire ______ and knowledge.
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What is the purpose of tariffs in international trade?
What is the purpose of tariffs in international trade?
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Operating internationally can help reduce risks associated with operating in just one market.
Operating internationally can help reduce risks associated with operating in just one market.
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What is mercantilism in the context of international trade?
What is mercantilism in the context of international trade?
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What does it mean to have a global operation in international business?
What does it mean to have a global operation in international business?
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Study Notes
International Business Definition & Context
- International business encompasses cross-border economic activities.
- It involves trade, investments, and transportation between two or more countries.
- It aims to expand sales, acquire resources, and reduce risk associated with a single market.
Why Companies Engage in International Business
- Increased Sales: Companies seek new markets with higher earning potential.
- Acquiring Resources & Knowledge: Access to cheaper resources, higher-quality goods and services, and innovative ideas.
- Reducing Risk: Diversifying business operations across multiple markets reduces the impact of economic downturns.
Three Major Objectives of International Business
- Increasing Sales: Organizations enter foreign markets to maximize profits.
- Acquiring Resources & Knowledge: International engagement provides access to global resources, talent, and expertise.
- Reducing Risk: Operating globally diversifies business operations and reduces dependence on a single market.
Mercantilism and Barriers to International Trade
- Mercantilism promoted national self-sufficiency by imposing tariffs on imports.
- Tariffs were used to discourage imports and generate government revenue.
- This policy aimed to protect domestic industries and maximize national wealth.
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Description
This quiz explores the definition, context, and objectives of international business. It covers key motivations for companies engaging in cross-border activities such as increasing sales, acquiring resources, and reducing risks. Test your understanding of the global marketplace and its dynamics.
