International Business Case Study

1558 WordsOct 17, 20177 Pages
1. What is international business? An international business is the exchange of goods and services with business or individuals in different countries all over the world. 2. Explain the 5 benefits that international trade offers to businesses? The 5 benefits that international trade offers to businesses are: Access to the Market - It’s when most business depend on international trade for their economic survival. Most countries usually have a larger international market then domestic market. Sometimes larger markets don’t always convert into big sales. Other times, certain countries companies have trouble adapting their products to several different types of markets because consumers that buy the item or contribute to the service have…show more content…
3. Describe the 5 P’s of international business. The 5 P’s of international business are: Product – Basically, the product of international business is what you are selling to your target audience to buy your item. A resource in a country determines what goods and services it can produce. Price – The price is what you’re going to set for a certain product or service. It can be adjusted to the price of the product or service according to where you are. Proximity - The proximity of international business is if it can be more profitable to sell products or services to consumers in neighbouring or domestic countries. Preference – The preference of international business depends on consumers. Consumers may want to buy foreign goods or services over domestic brands, because of their specialization and reputation. Promotion – According to nowadays, the time technology makes it easier to advertise products and provide services internationally. 4. Explain the 5 barriers to international business. The 5 barriers to international business are: Tariffs- They’re a form of tax on certain types of imports. They are based on a percentage-of-value basis or on some specific basses. This is very important for any government while managing trade with other nations. This is a barrier to trade between certain countries r in geographical areas. Non-tariff barriers - Non-tariff barriers are
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