Ques 2. What do you mean by International Business? Explain the Nature and Characteristics of International Business in brief. (15mks) Ans: Introduction
International Business is the process of focusing on the resources of the globe and objectives of the organisations on global business opportunities and threats. Free Trade occurs when a government does not attempt to influence, through quotas or duties, what its citizens can buy from another country or what they can produce and sell to another country.The Benefits of Trade allow a country to specialize in the manufacture and export of products that can be produced most efficiently in that country.The Pattern of International Trade displays patterns that are are easy to understand (Saudi Arabia/oil or Mexico/labor intensive goods). Others are not so easy to understand (Japan and cars).
Definition of International Business
According to David Ricardo, International Business means:
“The exchange of goods and services among individuals and businesses in multiple countries.” International Business Meaning
International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports. International Business is also known, called or referred as a Global Business or an International Marketing. An international business has many options for doing business, it includes, 1. Exporting goods and services.
2. Giving license to produce goods in the host country.
3. Starting a joint venture with a company.
4. Opening a branch for producing & distributing goods in the host country. 5. Providing managerial services to companies in the host country. Nature of International Business
1. Accurate Information – International business provides accurate information regarding transactions of economic resources, technology used,...
Please join StudyMode to read the full document