Question:
How is home trade different from external trade?
Answer:
Internal trade takes place between the geographical boundaries of a nation, whereas international trade takes place between different nations.
- In the trade of any nation, the volume of its internal trade will be more than that of external trade. Internal trade accounts for about 95% of the total volume of the trade of a country, whereas foreign trade accounts for only about 5% of the total volume of the trade of a country.
- Though both internal trade and international trade are based on the principle of specialization or division of labour, regional specialization within a country leads to internal trade or inter-regional trade, whereas country wise specialization leads to international trade.
- In the case of home trade, there is much scope for the operation of forces of demand and supply. But, in the case of foreign trade, there is not much scope for the full operation of the forces of demand and supply.
- The number of documents of trade required for home trade is less than the required for foreign trade.
- Home trade is subject to regulations and laws of only one country, whereas foreign trade is subject to regulations and laws of two or more countries.
- Home trade is, generally, free from restrictions, whereas foreign trade is subject to a number of restrictions.
- The cost of transport in home trade is much less than that in foreign trade.
- The interval between the dispatch of goods by the seller and the receipt of the same by the buyer in home trade is not much.
- Goods are subject to greater risk in foreign trade than in home trade.
- As goods are subject to more risks in foreign trade, in the case of international trader, goods are, generally, insured against the risks.
- Home trade involves the currency of only one country whereas foreign trade involves the currencies of two or more countries.
International Business I
Q 1.
What is the share of India's exports in world exports?
Q 2.
What are the major items that are exported from India?
Q 3.
Explain different forms of Joint Ventures.
Q 4.
Reebok orders for footballs to local manufacturers of Ludhiana and then sells it all over the world. It is an example of what?
Q 5.
List the major countries with whom India trades.
Q 6.
Which mode of international business should be chosen by a small business man and why?
Q 7.
State the important changes being observed in composition of India's external trade since 2007-08.
Q 8.
Discuss any three advantages of international business.
Q 9.
What are the benefits of international trade to firms?
Q 10.
Discuss the scope of international business.
Q 11.
Discuss the merits and demerits of entering into joint ventures.
Q 12.
Discuss as to why nations trade.
Q 13.
India is_largest economy in the world.
Q 14.
When a middleman is involved in handling export procedure, then it is called by what name?
Q 15.
Discuss meaning, merits and demerits of contract manufacturing.
Q 16.
Licensee or franchisee pays a fee to licensor or franchisor. What is it called?
Q 17.
"International trade benefits both the parties involve."Do you agree? Justify your answer:
Q 18.
Why is it said that licensing is an easier way to expand globally?
Q 19.
Name the country whose share is largest in India's exports and imports.
Q 20.
Which service has got dominating share in foreign trade in services?
Q 21.
How is home trade different from external trade?
Q 22.
What is the basic reason behind international trade?
Q 23.
Discuss the major trends in India's foreign trade. Also list the major products that India trades with other countries.
Q 24.
Write a short note on India's foreign investments.
Q 25.
What is the major reason under lying trade between nations?
Q 26.
List major items of India's import.
Q 27.
"Foreign trade is not free from difficulties."Comment.
Q 28.
Discuss meaning, merits and demerits of contract manufacturing.
Q 29.
Give one point of difference between licensing and franchising.
Q 30.
What benefits do firms derive by entering into international business?
Q 31.
Discuss the benefits of international business.
Q 32.
India embarks on the path of globalisation. Comment
Q 33.
Out of international trade and international business which one is wider in scope?
Q 34.
Enumerate limitations of contract manufacturing.
Q 35.
In what ways is exporting a better way of entering into international markets than setting up wholly owned subsidiaries abroad.
Q 36.
"International business is more than international trade". Comment.
Q 37.
Discuss briefly the factors that govern the choice of mode of entry into international business.
Q 38.
"Wholly owned subsidiary is a more investing, more risky and less return giving venture."Do you agree? Substantiate your answer.
Q 39.
Explain different forms of contract manufacturing.
Q 40.
Define international business.
Q 41.
What is invisible trade? Discuss salient aspects of India's trade in services.
Q 42.
Differentiate between international trade and international business.
Q 43.
Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.
Q 44.
Distinguish between licensing and franchising.
Q 45.
What is international business? How is it different from domestic business?
Q 46.
Licensing and franchising are suitable in different situations. Explain how?
