UNIT 10: INTERNATIONAL BUSINESS
Question for details
1 What is the definition of international business?
- International business relates to any situation where the production or distribution of goods or services crosses country borders.
- International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational level.
2.What is the theory of absolute advantage? (Học thuyết về lợi thế tuyệt đối)
The theory of absolute advantage says/ states/ indicates/ suggests/ that in a free market, countries produce whatever they can most efficiently grow or manufacture, or what is of the greatest advantage to them.
3.What is the theory of comparative advantage?
The theory of comparative advantage suggests that an exporting country does not have to be the most efficient producer of the product; it only has to be more efficient than the country which imports the product.
4.What is one of special programs of the government to encourage exports?
The G. can have programs to encourage exports such as
- programs that provide marketing information
- programs that establish trade missions
- programs that subsidize exports
- programs that provide tax benefits or incentives.
5.What is a trade mission?
A trade mission is a government organized group of government officials and businesspeople who travel to another country to promote trade between the two.
6.What is dumping?
Dumping means selling products by a company in a foreign market at a lower price than that in the domestic market / than it charges in the domestic market, or even lower than the production costs.
7.What is ad valorem tariff ? / specific tariff?
8.What does “CIF”/ “FOB” stand for? Their definitions?
9.What is tariff? What is the purpose of imposing tariffs on imports?
10.What is “quota”? What is the purpose of imposing quotas on imports?
Topic question
- What are advantages and disadvantages of world trade for importing nations?
advantages | Disadvantages |
| Local producers |
World trade has brought both ad and dis … for importing nations. Firstly, consumers of the importing countries can choose to buy either imports or domestic goods (domestically produced goods). And the increased competition between domestic goods and imports causes prices become lower. Secondly, imposing tariffs on imports creates revenue for the government.
However, importing goods creates challenges to local producers. They have to face to more competition from foreign competitors to remain/ keep their market share/ remain their position in the market.