DALUBHASAAN NG LUNGSOD NG LUCENA

(formerly City College of Lucena)

Isabang, Lucena City
Tel. No. and Fax No. (042) 797 – 1671

INTERNATIONAL BUSINESS AND TRADE

NAME: GIAN GEORGETTE H. SALCEDO DATE: 11/22/21____________________

COURSE: BSAIS-2B Instructor: MARJORIE C. JALBUENA

Critical Thinking and Concept Applications

1. "The study of international business is fine if you are going to work in a large multinational
enterprise, but it has no relevance for individuals who are going to work in small firms."
Evaluate this statement.

For me it is very important to study in many aspect to it because we all should know it. Cause of a lot of

advancement and larger our own product to be known to the other business in the other country. That we

should know their strategies and ways to their own business, how they compete to the business world. So it

is very advantage to the individuals who are going to work in small firms.

2. How have changes in technology contributed to the globalization of markets and production?
Would the globalization of production and markets have been possible without these technological changes?

Advanced technologies lower the cost of transportation and communication between countries, making

global distribution of raw materials and other inputs easier. Technology platform promotes globalization

since the company that owns the product can profit from international markets with little competition into

their own. It’s a yes to me, because without it, it would be have a slow process to make, promote and import

our own products to other nations and we don’t have good communications to them. So technological

changes is very important to us to be more convenient and faster process in the base in the globalization of

production and markets.

3. "Ultimately, the study of international business is best explained in the different trade theories. Enumerate and
differentiate each from one another..

Mercantilism is an economic theory that states that if the government controls a country’s economic growth by
increasing exports and limiting imports, the nation's economy will increase.

Absolute advantage is a term used in economics to describe a company superior manufacturing capabilities. It relates to
the capacity to manufacture a particular commodity or service at a cheaper cost and more efficiently than a competitor.

Comparative Advantage Theory that also suggested that nations can gain from international commerce by concentrating
in the manufacture of commodities for something they have a lower possibility cost of production, although if they doesn't
have an immense advantage in any single good.
Modern or Firm-Based Trade Theories Additional services and product variables, such as brand image and customer
devotion, innovation, and excellence, are incorporated into firm-based theories in order to better comprehend world trade.

Country Similarity Theory The assumption that aspects of national characteristics are more eager to trade. Rate of
technology, borrowing rates, and environmental assets are examples of these attributes. The country similarity theory
implies that economic operators who share common characteristics will want the same kind of things.

Product Life Cycle Theory According to the notion, all of the parts and labor connected with a product come from the
place where it was invented early in its life cycle. Production gradually moves away from the point of origin after the
product is adopted and used in global markets. In some cases, the product is converted into an item that is imported by the
country of origin.

Porter’s National Competitive Advantage Theory The ability of a country's industry to innovate and upgrade
determines its competitiveness. Because of the pressure and difficulty, businesses acquire an advantage over the world's
greatest competitors. Strong domestic competitors, aggressive home-based suppliers, and demanding local customers help
them succeed.