1.

1 International business is a business that is engaged in economic activities or transactions across the
national borders while Domestic businesses are those business that their transactions are within the
geographical boundaries of the country.

1.2 International business deals with multiple currencies because it is interconnected with other
countries while domestic business just deal with single currency.

1.3 International business has many restrictions when it comes to government regulations and policy
while domestic business has fewer restrictions on implementing their businesses in the country.

2.1 Firms internationalize to seek opportunities for growth through market diversification. Through
internationalization, product and services that are not offered by their home country, are being
proposed by other country. Internationalization also provides products and services that reached
maturity on their home country. Best example for that is Facebook. Facebook started in their home
country and look at it now, through internationalization its market grow. Facebook is already around the
world and by this it helps increase revenues to the companies.

2.2 Firms internationalize to gain new ideas about products, services and business methods. We all
know that international markets has a tough competitors and also has a high demand in various needs.
Through internationalization, firms will be expose to those foreign environment and adopt new ideas for
products, services and business methods in order to acquire efficiency and effectiveness in catering the
customers needs. Best example for this is the Just in time technique of Toyota in Japan. By acquiring this
knowledge, firms from the other countries applied the technique in their own manufacturing firms to
lessen the cost of manufacturing and ofcourse to help increase the sales.

2.3 Firms internationalize to serve key customers better that have relocated abroad. Some customers
moved to abroad due to some reasons and so firms cannot serve them now. Through
internationalization, we bring the firms on the other countries to better serve the potentials customers
or clients that have relocated abroad. Best example for this is, McDonalds. We all know that McDonalds
is a foreign company that serves different kind of burgers and meals. McDonalds bring the firm and its
different burgers and meals to serve those American clients that moved to Philippines. To sum it up,
firms do internationalization to enhance its competitive advantage around the globe and ofcourse find
growth and profit opportunities.

3.1 For me, it is very necessary to study international business because it facilitates the global economy
and interconnectedness. In this time, international business have experienced fast growth on developing
economies. Hence, they are experiencing liberalization, privitalization, and industrialization which fuel
the global economic transformation.

3.2 Studying international business contributes to economic prosperity. It helps countries to use their
resources efficiently and provides interconnectedness among world economy. International business
also creates job opportunities among the people on the country. According to the book, it is estimated
that every 1 billion increase in exports creates more that 20,000 new jobs.
3.3 Studying international business is a competitive advantage for the firm. Sustaining competitive
advantage in a global economy is not that easy because firms must be readily participate in cross border
business and acquire the necessary skills, knowledge and competence but this all goes with risk.
Moreover, expanding the business to international market offers countless opportunities to grow and
sustain profits.
1.1 One reason why some firms are forced into globalization of markets it is because trade barriers are
declining. It is easier for some firms to internationalize their products and services abroad because there
are less barriers than before upon trading in fact some of the countries offers trade free or no tariff at all
to be paid.

1.2 Another reason is that it allows companies to outsource value-chain activities to those favorable
locations abroad. Getting those raw materials, parts, components and services abroad can minimize
their cost because those locations has a low cost of labour and abundant of sources.

1.3 Lastly, there is a rapid change in communication and transportation technologies that is why firms
are forced into globalization of markets. Businesses can now communicate around the world just
through the use of technologies and our transportation has improved a lot. It only takes few days to
import goods around the world.

2.1 Alibaba- It is considered as born global firm because after 3 years of operation in 2002, Alibaba inter-
industry wholesale site exceeded one million registered users and found its financial balance.

2.2 Spotify- It is considered as born global firm because there is a global on demand for music streaming
services that would allow users the freedom to browse through a catalog of music, licensed through
multiple record labels, and create even share music playlists with other users.

2.3 Skype- It is considered as born global firm because there are millions of users logged in on Skype.
And it also received significant funding from some of the largest venture-capital firms in the world.
Skype is used to communicate to other people around the world through the use of Internet with a
voice over internet protocol.

3.1 Consumers enjoys lower prices of products and services due to high competition on the market.

3.2 Consumers also enjoys a greater choice because there are lots of products in the market that can be
chosen or there is an increase in trade.

3.3 Consumers also enjoys more efficient production of products. Though this, there will be no
shortages of products in the market. And all the wants and need are being suffice.