The Push and Pull Factors of International Business

The video discusses the increasing engagement of businesses in international trade, focusing on exports and imports. It highlights the incentives for exporting, such as accessing additional markets and increasing revenue, and for importing, like reducing production costs. The video also examines the complexities of international engagement and the factors influencing a business's decision to trade globally, including push and pull factors and economic considerations.

What is one of the main incentives for businesses to engage in exporting their goods and services?

• To access additional markets and increase revenue

• To decrease domestic competition

• To reduce production costs

• To avoid language barriers

Why might a business choose to import raw materials?

• To increase domestic market share

• To reduce production costs by sourcing cheaper inputs

• To avoid international trade regulations

• To increase language proficiency

What is a push factor that might encourage a business to look for opportunities abroad?

• Cultural similarities

• Favorable exchange rates

• Lower production costs in foreign markets

• High domestic market saturation

Which of the following is considered a pull factor for international business engagement?

• Strict domestic regulations

• Economies of scale in foreign markets

• Limited domestic resources

• High domestic taxes

What is an example of an economic factor that can influence international trade?

• Political stability

• Cultural differences

• Language barriers

• Growth rate comparisons between domestic and foreign economies