Comparing Business Types

What is the primary focus of domestic business?

• Managing global supply chains.

• Focusing solely on online sales.

• Conducting commercial activities within a specific country.

• Conducting international trade activities.

How does international business differ in terms of market reach?

• International business limits its reach to a single country.

• International business only focuses on local markets.

• International business primarily targets online customers only.

• International business has a broader market reach, accessing multiple countries and diverse customer bases.

What are some common challenges faced in international business?

• High employee turnover

• Increased domestic sales

• Simplified supply chain management

• Common challenges in international business include cultural differences, legal compliance, currency fluctuations, political instability, and logistical complexities.

In what ways do cultural differences impact international business?

• Cultural differences solely influence product pricing.

• Cultural differences have no impact on employee productivity.

• Cultural differences affect communication, negotiation, decision-making, and attitudes towards hierarchy in international business.

• Cultural differences only affect marketing strategies.

What legal considerations are more complex in international business?

• No regulations on international trade

• Uniform contract laws across all countries

• Complex legal considerations in international business include contract law differences, trade regulations, intellectual property rights, labor laws, and dispute resolution.

• Standardized labor laws worldwide

How does currency fluctuation affect international business operations?

• Currency fluctuations only affect domestic businesses.

• Currency fluctuations have no impact on international trade agreements.

• Currency fluctuations are solely determined by government policies.

• Currency fluctuations affect pricing, profit margins, competitiveness, and operational costs in international business.

What are the advantages of operating a domestic business?

• Advantages of operating a domestic business include lower transportation costs, easier compliance with local laws, better understanding of the local market, and stronger customer relationships.

• Higher international tariffs

• Limited access to global resources

• Increased competition from foreign markets

How do supply chain logistics differ between domestic and international business?

• Domestic logistics involve more international regulations than international logistics.

• Domestic logistics require more documentation than international logistics.

• Domestic logistics are simpler and involve fewer regulations, while international logistics are more complex with longer distances and multiple regulatory requirements.

• International logistics are always cheaper than domestic logistics.

What role does technology play in facilitating international business?

• Technology only increases costs in international business.

• Technology plays a crucial role in enabling communication, streamlining operations, and enhancing market access in international business.

• Technology is primarily used for local business operations.

• Technology has no impact on communication in global markets.

Why is understanding local regulations important for international businesses?

• It is important for compliance, avoiding penalties, and adapting to local market conditions.

• To increase profit margins without restrictions.

• To standardize operations across all countries.

• To eliminate competition in the local market.