U1 Reasons for Recent Growth

Question 1

What are some developments in communication technology that have contributed to the growth of international business?

Answer 1

• Technology such as email, conference calls, and video conferencing.
• Companies like Estée Lauder using the internet to communicate with customers.
• Building customer databases through website visits.
• Limitations include time zone differences and scheduling challenges.

Question 2

What is the significance of time zones in conducting international business?

Answer 2

• There are 24 time zones in the world, measured relative to Greenwich, England.
• Time zones help coordinate business activities across different regions.
• Before time zones, each city had its own local time, causing confusion.
• Sir Sanford Fleming invented time zones in 1878.

Question 3

How have developments in transportation impacted international trade?

Answer 3

• increased international trade.
• Refrigerated containers on trucks, trains, and ships enable the transport of perishable goods.
• Canada’s transportation system includes ship, rail, airplane, truck, and pipeline modes.

Question 4

What is the significance of freer borders in international business?

Answer 4

• Fewer barriers to moving goods, services, and resources across borders attract businesses.
• Trade agreements between countries reduce customs duties and other trade barriers.
• The World Trade Organization (WTO) facilitates international trade negotiations, disputes, and policy monitoring.
• Cooperation with other international organizations helps promote smoother cross-border transactions.

Question 5

How does business confidence contribute to international trade?

Answer 5

• Reduced risks, costs, and time associated with international trade enhance business confidence.
• Agreements with institutions like banks, postal services, and insurance companies provide better credit, currency conversion, and insurance services.
• Increasing internet security and reliable courier services improve communication and deliveries.
• Enhanced confidence allows companies to search worldwide for new ideas, products, and manufacturing processes.

Question 6

How has increased global competition impacted international business?

Answer 6

Introduction of new products and emergence of new companies create competition