from which it is exported. . Political Exploitation. International business may create economic dependence among the countries which may threaten their political independence.
The MNCs may influence the policy decision of the government to their favour. In due course of time they may dictate terms to administrators of nation by the sheer strength of their money power. For example Britishers came to many countries as mere traders and ultimately colonized those countries and ruled them for centuries. .
Rivalry among the Nations. Acute competition for exports may lead to rivalry among the nations. This may lead to conflict of interest among the countries and end up in wars among them. .
Invasion of Culture. International business may result in invasion of country’s culture. Younger generation is more likely to imitate foreign culture and buy goods and services beyond their means to gain acceptance in the affluent section of society. This will ruin the conventional lifestyle of the society.
Key Terms International business Export Trade Import Trade Specialization Natural resources Entrepot For Future Learning . Scope of international business . Wide range of international business For Own Thinking Take interest in export or import trade Try to become exporter Exercise I. Choose the Correct Answer .
Movement of goods , services, intellectual property, human assets, technology and so on among the countries. (a) International Trade (b) International business (c) Entrepot Trade (d) Internal trade Commerce - - . . PM .
Goods are imported for purpose of re-export to another country is termed . (a) Import Trade (b) Export Trade (c) Entrepot Trade (d) International trade . Movement of goods , services among the countries. (a) International Trade (b) International business (c) Entrepot Trade (d) Internal trade .
Selling of goods from home country to foreign country is called (a) Home Trade (b) Entrepot Trade (c) Foreign Trade (d) Joint Venture Answers .a .c .b .c II. Very Short Answer Questions . What do you mean by International business? .
What is meant by Export Trade? . What is meant by Import Trade? .
What is meant by Entrepot Trade?