INTERNATIONAL BUSINESS MANAGAMENT EXPECTED QUESTIONS

1. Define (What is) International Business.

International business is a term used to collectively describe all commercial

transactions (private and governmental, sales, investments, logistics, and
transportation) that take place between two or more nations.

According to Daniels & Radebaugh, “International business is defined as all

business transactions that involve two or more countries”.

2. Write short note on Transnational Company.

A Multinational Enterprise (MNE) is a company that has a worldwide

approach to markets and production or one with operations in more than a
country.

An MNE is often called Multinational Corporation (MNC) or transnational

company (TCN).

Well known MNCs include fast food companies such as McDonald's and Yum
Brands, vehicle manufacturers such as General Motors, Ford Motor Company
and Toyota, consumer electronics companies like Samsung, LG and Sony, and
energy companies such as Exxon Mobil, Shell and BP.

3. Write short on different approaches towards International business

APPROACHES TO INTERNATIONAL BUSINESS

It takes the form of an EPRG schema (Ethnocentrism, Polycentrism,

Regiocentrism, Geocentrism)

4. What is international trade?

International trade, economic transactions that are made between

countries. Among the items commonly traded are consumer goods,
such as television sets and clothing; capital goods, such as
machinery; and raw materials and food.

5. Give few advantages & disadvantages of international business

6. Distinguish between international business and domestic business
7. What does the term internationalizing business mean?

8. Write down the factors determining international business.

9. What is International business environment?

10. What is globalization?

11. Differentiate between political & economic environment in International

Business.

12. What is meant by Global Competitiveness?

13. Write down some of the major regional trade blocks across the world

14. Write down some of the roles played by WTO/GATT

15. Mention the challenges being faced by global business

PART B

1. Discuss the factors that cause globalization of business.

2. Discuss International Environment

3. Explain the determinants of country attractiveness
4. Discuss the differences between GATT and WTO.
5. Enumerate the various theories of International trade & investments.
Describe any two theories of International Trade.
PART C
1. Explain the steps needed to upgrade domestic business into international

business.
Expanding a business is a daunting step for any business owner or entrepreneur – but
the decision is even more complex and risky when you’re planning on expanding your
business internationally whether you’re only going into a single country, a region, or
multiple countries. Unless you have extensive international expansion experience, you
probably have lots of questions and don’t know where to start with your planning. We
created this post as a first step as you consider your international expansion by listing
and briefly describing factors you must consider.
So many challenges arise when you expand your business internationally and the more
thoroughly prepared you are, the greater your chances of success. Without this
thorough planning and organization, your business might lose hundreds of thousands of
dollars in an instant and damage your brand to the point where future expansion plans
are even riskier.

As part of your preparation, there are several things you must consider before making a
decision about expanding your business internationally. To help guide you in the right
direction, here are 4 factors every business must consider before beginning an
international expansion:

1. Culture

The cultural difference can determine whether the business is successful or not. If
the product or service doesn't add value or meet the desires of the local markets,
there's no need to go sailing! It is vital to have an intimate understanding about
who lives in the community and what they value. Consider the following:

Knowing how to conduct business among the "local" markets is extremely

important. Do not underestimate the effects of cultural differences. You must be
willing to invest significant time and energy in order to pursue an overseas
venture. Seek first to understand the culture.

2. Legal and regulatory barriers

Conducting business in foreign markets is achievable if the business is flexible

enough to work within the local laws and regulation guidelines. Review aspects
such as:

When reviewing legal and regulatory commitments, it is highly advised that you
seek experienced legal counsel for overseas business practices to identify hazards
that may cause barriers for your business. Don't skimp on the cost of using
overseas expert legal counsel, it can save you in the long run.
3. Foreign government consideration

The stability of the local government and its authority are very important when
reviewing overseas business options. Aspects to consider are:

 Currency exchange rates

 Access to needed resources and materials

 Communication and transportation options

 Government assistance programs for businesses

 Access to affordable capital

 Protection policies for businesses

 Immigration and employment Laws

Government stability holds the key to contract integrity, employee security and rights,
trademark and intellectual property and many other facets in conducting business.
Make sure to seek "local" expertise over the political and business factors before
entertaining any overseas expansion.

4. Business case
It is essential that the business case responds to the challenges, adversity and
rewards of expanding overseas. Some strategies to consider are:
 Perform a market study to understand the market's personality, economic feasibility, market
trends, financial cost patterns and market forecasts

 Do a financial feasibility study to determine if the move makes financial sense

 Intellectual property and trademark protection, and making sure the governmental
authorities in that location recognize and protect the businesses proprietary needs

 Partnership and liaison relationship development – seek guidance and opportunity by

engaging in a "local" partnership with an existing client or supplier
2. Elucidate the various factors influencing country attractiveness and its
influence on international business in detail.

3. Elucidate the various challenges for global business in detail.