Question

1) Provide a rationale as to why “all business people need to have a basic knowledge of international business”. What are the basic reasons for the recent growth of international business activity?

Answer 1

1.

It is important for the business people to have a basic understanding of the international business, because it will help these people to identify different overseas market for expansion and growth of their business. Further, it will also help these people to prepare themselves from threats coming through the international business to their own domestic market. Besides, international business helps business people to offset the slowdown in one economy with robust growth in another market and economy. Hence, a basic knowledge of the international business readies the business people understand the international business climate and expand, consolidate or protect their own market share.

There are different reasons for the growth of the international business activity. The first reason is the development of free trade areas and economies getting connected via globalization. It has made businesses to reach out to the overseas markets and operate. The second reason is to nullify the slowdown in one economy with growth in another economy. So, loss of business in one economy can be eliminated. The third reason is the business expansion that is facilitated by international business. These reasons make international businesses to grow.