Business Studies

International Business I

Question:

What benefits do firms derive by entering into international business?

Answer:

The trade between two or more nations is termed as foreign trade or international trade. It involves exchange of goods and services between the trades of two countries. Foreign trade consists of import trade, export trade and entrepot trade. In the early stages of human civilization, production was confined as per consumption. Human wants were limited. Nowadays, human wants are increasing and as such no man was considered to be self-dependent. Like this no country can live in isolation and claimed the status to be self-sufficient. Because of this reason countries have trade relationships with each other. The primary objective of foreign trade is to increase foreign trade and increase the standard of living of its people. There is an increasing demand for foreign trade because of the following reasons:

  1. The natural resources are unevenly distributed.
  2. The presence of specialisation and division of labour.
  3. Different countries have difference in economic growth rate.
  4. The presence of the theory of comparative cost.
    The following are some of the advantages of foreign trade:
  1. Optimum use of Resources: Foreign trade helps in the optimum use of natural resources and avoids wastages of resources.
  2. Stable Price: It ensures the presence of stable price by avoiding wide fluctuations in prices. It tries to equalise the world price.
  3. Availability of all types of goods: It enables a country to import those goods which it cannot produce.
  4. Increased Standard of living: It ensures more production to meet the demand of the people of different countries. By increased production, it becomes possible to increase income and the standard of living of its people. It also increases the standard of living by increasing more employment opportunities.
  5. Large Scale production: It ensures large production because the production is carried on to meet the demand of its people as well as world market. Large scale production also ensures a great deal of internal economies which reduces the cost of production.
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International Business I

Q 1.

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

Q 2.

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

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.

What are the major items that are exported from India?

Q 6.

Discuss as to why nations trade.

Q 7.

Discuss the scope of international business.

Q 8.

What are the benefits of international trade to firms?

Q 9.

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

Q 10.

List the major countries with whom India trades.

Q 11.

India is_largest economy in the world.

Q 12.

Discuss the merits and demerits of entering into joint ventures.

Q 13.

Discuss meaning, merits and demerits of contract manufacturing.

Q 14.

Discuss any three advantages of international business.

Q 15.

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

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.

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

Q 19.

What is the basic reason behind international trade?

Q 20.

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

Q 21.

List major items of India's import.

Q 22.

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

Q 23.

Write a short note on India's foreign investments.

Q 24.

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

Q 25.

Give one point of difference between licensing and franchising.

Q 26.

How is home trade different from external trade?

Q 27.

What is the major reason under lying trade between nations?

Q 28.

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

Q 29.

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

Q 30.

Discuss meaning, merits and demerits of contract manufacturing.

Q 31.

India embarks on the path of globalisation. Comment

Q 32.

Enumerate limitations of contract manufacturing.

Q 33.

Discuss the benefits of international business.

Q 34.

What benefits do firms derive by entering into international business?

Q 35.

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

Q 36.

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

Q 37.

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

Q 38.

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

Q 39.

Explain different forms of contract manufacturing.

Q 40.

Define international business.

Q 41.

Differentiate between international trade and international business.

Q 42.

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

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?