TOPIC 1 WHAT IS INTERNATIONAL BUSINESS?

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Several factors other than free trade or globalisation could have been the
cause. Totalitarian governments and destructive economic policies which
provide little protection for property rights and war such as in the countries
of Africa have failed to improve the economic level of their citizens. The
rapid rate of population growth further complicates the issue.

Another factor is the large debt burdens held by the poor countries. The
servicing of these debts result in very little left for these countries to spend
on building important infrastructures, such as roads, power generation
plants, education and health care. Large scale debt-relief programmes could
provide these poor countries with the opportunity to restructure their
economies and invest wisely in public projects that facilitate economic
growth and free trade and investment.

ACTIVITY 1.2
Based on your opinion, how can Malaysia obtain the benefits of
globalisation?

Assess your understanding by answering the following questions.

EXERCISE 1.1
1. The two areas of technology which have helped contribute to the
tremendous growth of international business are in ____________.
A. research and manufacturing
B. communications and transportation
C. agriculture and manufacturing
D. production and processes

2. When a firm designs a product in one country, produces it in

another country and exports the product to other countries, this is
known as the globalisation of:
A. Management
B. Marketing
C. Production
D. Finance

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