Lesson 3 - International Business

Question 1

international Business

Answer 1

The trade of goods, services, technology, capital, and/or knowledge across national borders and at a global or transnational scale.

It involves cross-border transactions of goods and services between two or more countries.

May offer many benefits to individuals, firms, and societies, such as increased economic growth, innovation, diversity, and cultural exchange. However, it also poses many challenges, such as political, legal, cultural, ethical, and environmental differences, trade barriers, currency fluctuations, competition, and risk management.

Question 3

Access to markets

Question 4

Benefits of international business

Answer 4

1. Markets are 200 times larger than those at home, giving access to more potential customers
2. Global Product: standardized item that is offered in the same format in all countries. E.x. soccer ball
3. Cheaper labour: lower cost
4. Increased quality of goods: country may be expert, for example, german cars
5. Increased quantity: can sell more, need to produce more
6. Access to resources:access to natural, human, and capital resources

Question 5

Five P’s of international business

Answer 5

1. Product
2. Proximity
   Neighboring country: easy to trade

Example: 80% of the Canadian population lives within 170 km of the U.S. border

4. Preference
   Based on reputation and specialization

Ex. Swiss watches, Belgium chocolates

5. Promotion
   Technology has made international promotion easier

Marketing, advertising, and attracting customers worldwide