International Business

What is international trade?

• The exchange of goods and services within a country.

• The exchange of money between countries.

• The exchange of cultural practices between countries.

• The exchange of goods and services between countries.

Name two advantages of international trade.

• Higher costs and reduced efficiency

• Increased bureaucracy and paperwork

• Increased efficiency and lower costs, and access to new markets and resources

• Limited access to new markets and resources

What are the different modes of entry into foreign markets?

• mergers, acquisitions, divestitures

• importing, outsourcing, offshoring

• e-commerce, direct marketing, telemarketing

• exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries

Explain the concept of exporting as a mode of foreign market entry.

• Exporting is a mode of foreign market entry that involves setting up a joint venture with a local company in the foreign country.

• Exporting involves selling goods and services produced in one country to customers in another country.

• Exporting is a mode of foreign market entry that involves importing goods and services from other countries.

• Exporting involves selling goods and services produced in one country to customers in the same country.

What is a joint venture and how does it help in entering foreign markets?

• It is a type of dance performed in foreign markets to attract customers

• It is a type of investment in foreign markets that guarantees high returns

• It is a business agreement in which two or more companies collaborate on a specific project or business activity, and it helps in entering foreign markets by sharing resources, risks, and expertise with a local partner.

• It is a form of international trade that involves bartering goods for services

Discuss the concept of licensing as a mode of foreign market entry.

• Licensing allows a company in one country to grant certain rights to a company in another country in exchange for royalties or other compensation.

• Licensing is a method of selling products directly to consumers

• Licensing is a type of driver's permit

• Licensing is a form of currency exchange

What are the risks associated with international trade?

• Technological advancements and innovation

• Potential risks such as currency fluctuations, political instability, trade barriers, and legal issues.

• Language barriers and cultural differences

• Weather conditions and natural disasters

Explain the concept of direct investment in the context of foreign market entry.

• Direct investment involves buying stocks in a foreign company

• Direct investment means exporting goods to a foreign country

• Direct investment refers to providing loans to a foreign government

• Direct investment involves a company from one country making a physical investment in a foreign country, such as building a new factory or acquiring a local company.

What are the cultural challenges faced by businesses in international trade?

• Political stability

• Technological advancements

• Currency exchange rates

• Cultural differences, language barriers, negotiation styles, and ethical practices

Discuss the importance of understanding local laws and regulations when entering foreign markets.

• Understanding local laws and regulations is crucial for entering foreign markets because it helps in complying with legal requirements, avoiding potential legal issues, and adapting business strategies to local norms and practices.

• Ignoring local laws and regulations is not a big deal in foreign markets.

• Local laws and regulations have no impact on business operations in foreign markets.

• It is unnecessary to understand local laws and regulations when entering foreign markets.