12  TOPIC 1 WHAT IS INTERNATIONAL BUSINESS?

3. Firms that do not participate in international business will more likely

be:
A. Forced to go out of business.
B. Too small to export their goods successfully.
C. Better positioned for unlimited domestic expansion.
D. Affected by the economic but not political developments that is
occurring in the global markets.

4. Although there are many benefits to globalisation, there is a general

agreement that increased international trade and investment will
result in higher prices for goods and services.
A. True
B. False

5. Government deregulation means the increase in barriers imposed by

foreign country governments to encourage trade and investment.
A. True
B. False

6. Is the isolation of specific countries from the international markets

possible? Why or why not?

7. In what way has the increase in competition contributed to the

growth of international business?

1.2 INTERNATIONAL BUSINESS ACTIVITIES

Although international business activity was first carried out in the form of
exporting and importing, business today can be divided into the following three
broader categories.

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