1.2 WHY STUDY INTERNATIONAL BUSINESS?

Question 1

Importance of IB (Why study IB)

Answer 1

1. Facilitator of the Global Economy and Interconnectedness.
2. Contributor to National Economic Well-Being
3. A Competitive Advantage for the firm
4. A Competitive Advantage for you
5. An Opportunity to Support Sustainability and Corporate Citizenship

Question 2

Main players in IB

Answer 2

1. Focal firm
2. Distribution channel intermediary
3. Facilitator
4. Government

Question 3

Why do firm internationalize?
(Reasons for IB)

Answer 3

1. Seek opportunities for growth through market diversification
2. Earn higher margins and profits
3. Gain new ideas about products, services, and business methods
4. Serve key customers better that have relocated abroad
5. Gain access to lower-cost or better-value factors of production
6. Invest in a potentially rewarding relationship with a foreign partner.
7. Develop economies of scale in sourcing, production, marketing and R&D