International Business Studies Quiz

Key Points on International Business Studies

• International Business involves business activities beyond the geographical limit of a country, including the movement of goods, services, capital, technology, and intellectual property.
• The importance of international business includes earning foreign exchange, utilizing resources optimally, achieving objectives, spreading business risks, improving efficiency, expanding and diversifying, and increasing competitive capacity.
• International trade is the purchase and sale of goods and services by companies in different countries, involving the fulfillment of needs and wants of other countries through importing or exporting of goods.
• Reasons for importing include obtaining products only available in foreign countries, providing quality imported goods, accessing specialized or cheaper products, and meeting demand for manufactured goods.
• Exporting goods and services helps businesses expand, but requires careful planning, coordination, and attention to detail.
• Companies are ready to trade internationally when they have management commitment, competitive advantage, strong financial and personnel support, and the capacity to produce products that would appeal to the target market.
• Trade missions are organized by national or provincial governments to explore potential international business opportunities and create networks of buyers, agents, suppliers, and key government contacts.
• Trade shows bring together members of a particular industry to display, demonstrate, and discuss their latest products and services, catering to industry, consumer, or both.
• Exporting goods and services allows firms to tap into new markets, increase sales and revenue streams, and reduce dependence on domestic markets.
• Foreign investment refers to the investment in domestic companies and assets of another country by a foreign investor, seen as a catalyst for economic growth in the future.
• Public-sector investment involves the state investing in particular assets, stimulating private investment in digital communications, electrification, or transportation infrastructure.
• Portfolio investment is ownership of a financial asset with the expectation of earning a return or growing in value over time, and includes family offices, pension funds, sovereign wealth funds, and insurance companies.

Key Points on International Business Studies

• International Business involves business activities beyond the geographical limit of a country, including the movement of goods, services, capital, technology, and intellectual property.
• The importance of international business includes earning foreign exchange, utilizing resources optimally, achieving objectives, spreading business risks, improving efficiency, expanding and diversifying, and increasing competitive capacity.
• International trade is the purchase and sale of goods and services by companies in different countries, involving the fulfillment of needs and wants of other countries through importing or exporting of goods.
• Reasons for importing include obtaining products only available in foreign countries, providing quality imported goods, accessing specialized or cheaper products, and meeting demand for manufactured goods.
• Exporting goods and services helps businesses expand, but requires careful planning, coordination, and attention to detail.
• Companies are ready to trade internationally when they have management commitment, competitive advantage, strong financial and personnel support, and the capacity to produce products that would appeal to the target market.
• Trade missions are organized by national or provincial governments to explore potential international business opportunities and create networks of buyers, agents, suppliers, and key government contacts.
• Trade shows bring together members of a particular industry to display, demonstrate, and discuss their latest products and services, catering to industry, consumer, or both.
• Exporting goods and services allows firms to tap into new markets, increase sales and revenue streams, and reduce dependence on domestic markets.
• Foreign investment refers to the investment in domestic companies and assets of another country by a foreign investor, seen as a catalyst for economic growth in the future.
• Public-sector investment involves the state investing in particular assets, stimulating private investment in digital communications, electrification, or transportation infrastructure.
• Portfolio investment is ownership of a financial asset with the expectation of earning a return or growing in value over time, and includes family offices, pension funds, sovereign wealth funds, and insurance companies.