International Business
Madhya Pradesh Board · Class 11 · Business Studies
Quick revision notes for International Business — Madhya Pradesh Board Class 11 Business Studies. Key concepts, formulas, and definitions for last-minute revision.
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Key Topics to Revise
Meaning and Scope of International Business
- International business involves business activities across national frontiers
- It is broader than international trade - includes production, marketing, and other operations in foreign countries
- Components include: trade in goods and services, foreign investments, overseas production, technology transfer
Differences Between Domestic and International Business
- Nationality of buyers and sellers differs in international business
- Multiple stakeholders from different countries involved
- Lower mobility of factors of production across borders
Forms of International Business Operations
- Merchandise exports and imports - trade in tangible goods
- Service exports and imports - trade in intangibles (invisible trade)
- Licensing and franchising - granting rights to use technology/brand
Benefits of International Business
- Benefits to Countries: Foreign exchange earnings, efficient resource use, improved growth prospects, higher living standards
- Benefits to Firms: Higher profits, increased capacity utilization, growth prospects, escape from domestic competition, improved business vision
- Countries can specialize in what they produce best and trade for other needs
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