International Business
Short Answer Questions
1. Differentiate between international trade and international business.
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2. Discuss any three advantages of international business.
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3. What is the major reason underlying trade between nations?
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4. Differentiate between contract manufacturing and setting up wholly owned
production subsidiary abroad.
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5. Why is it necessary for an export firm to go in for pre-shipment inspection?
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6. What is bill of lading? How does it differ from bill of entry?
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7. What is a letter of credit? Why does an exporter need this document?
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8. Discuss the process involved in securing payment for exports.
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Long Answer Questions
1. “International business is more than international trade”. Comment.
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2. What benefits do firms derive by entering into international business?
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3. In what ways is exporting a better way of entering international markets
than setting up wholly owned subsidiaries abroad.
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4. Rekha Garments has received an order to export 2000 men’s trousers to
Swift Imports Ltd., located in Australia. Discuss the procedure that Rekha
Garments would need to go through for executing the export order.
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5. Your firm is planning to import textile machinery from Canada. Describe
the procedure involved in importing.
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6. What is IMF? Discuss its various objectives and functions.
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7. Write a detailed note on features, structure, objectives and functioning of
WTO.
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