business studies - international business i

Class 11 - Business Studies

International Business I

MCQ
Q&A
Question:

Discuss briefly the factors that govern the choice of mode of entry into international business.

Answer:

Following factors govern the choice of mode of entry into international business,

  1. Ease of entry: First and foremost factor that determines the choice of mode of entry into international business is ease of entry. A businessman wants to adopt such mode of entry into international business which is easy and less formalities requiring. Exporting, importing, licensing and franchising are better ways from this perspective.
  2. Cost: Second determining factor is cost involved. For example, very less cost is involved in exporting, importing, licensing, franchising and contract manufacturing as compared to joint ventures and setting wholly owned subsidiaries.
  3. Control over production: If the foreign company or producer wants full control over production activities in local country, he will prefer franchising, wholly owned subsidiary or joint venture with majority share holding. If it is not so important, he will prefer exporting, importing, contract manufacturing licensing etc.
  4. Sharing of Technology: If the company has no problem in sharing of technology then it may choose joint venture or franchising. But if it does not want to share its technology and trade secrets, it will prefer wholly owned subsidiary or exporting,
  5. Risk Involved: If a firm is ready to take risk, it may choose wholly owned subsidiary or joint ventures but if it is willing to minimize its loss then it should choose exporting, licensing, franchising or contract manufacturing.


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Questions and Answers


International Business I - Questions
1.

Differentiate between international trade and international business.


Answer
2.

Discuss any three advantages of international business.


Answer
3.

Enumerate limitations of contract manufacturing.


Answer
4.

Distinguish between licensing and franchising.


Answer
5.

List major items of India's import.


Answer
6.

What are the major items that are exported from India?


Answer
7.

List the major countries with whom India trades.


Answer
8.

What is international business? How is it different from domestic business?


Answer
9.

In what ways is exporting a better way of entering into international markets than setting up wholly owned subsidiaries abroad.


Answer
10.

Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.


Answer
11.

What is invisible trade? Discuss salient aspects of India's trade in services.


Answer
12.

India is_largest economy in the world.


Answer
13.

Define international business.


Answer
14.

Explain different forms of Joint Ventures.


Answer
15.

What are the benefits of international trade to firms?


Answer
16.

Write a short note on India's foreign investments.


Answer
17.

Discuss the benefits of international business.


Answer
18.

Licensing and franchising are suitable in different situations. Explain how?


Answer
19.

Discuss meaning, merits and demerits of contract manufacturing.


Answer
20.

State the important changes being observed in composition of India's external trade since 2007-08.


Answer
21.

"Wholly owned subsidiary is a more investing, more risky and less return giving venture."Do you agree? Substantiate your answer.


Answer
22.

"Foreign trade is not free from difficulties."Comment.


Answer
23.

"International trade benefits both the parties involve."Do you agree? Justify your answer:


Answer
24.

Which mode of international business should be chosen by a small business man and why?


Answer
25.

What is the major reason under lying trade between nations?


Answer
26.

Discuss as to why nations trade.


Answer
27.

Why is it said that licensing is an easier way to expand globally?


Answer
28.

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.


Answer
29.

"International business is more than international trade". Comment.


Answer
30.

Discuss briefly the factors that govern the choice of mode of entry into international business.


Answer
31.

Out of international trade and international business which one is wider in scope?


Answer
32.

Give one point of difference between licensing and franchising.


Answer
33.

When a middleman is involved in handling export procedure, then it is called by what name?


Answer
34.

Licensee or franchisee pays a fee to licensor or franchisor. What is it called?


Answer
35.

What is the share of India's exports in world exports?


Answer
36.

Which service has got dominating share in foreign trade in services?


Answer
37.

Discuss the merits and demerits of entering into joint ventures.


Answer
38.

Discuss the scope of international business.


Answer
39.

How is home trade different from external trade?


Answer
40.

What benefits do firms derive by entering into international business?


Answer
41.

Reebok orders for footballs to local manufacturers of Ludhiana and then sells it all over the world. It is an example of what?


Answer
42.

Explain different forms of contract manufacturing.


Answer
43.

India embarks on the path of globalisation. Comment


Answer
44.

What is the basic reason behind international trade?


Answer
45.

Name the country whose share is largest in India's exports and imports.


Answer
46.

Discuss meaning, merits and demerits of contract manufacturing.


Answer
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