What are the main factors driving the shift towards global trade and interdependence among nations?

Technological advancements, improved communication, and infrastructure developments are the main factors driving the shift towards global trade and interdependence among nations.

Fill in the blank: Global trade organizations like ___ and ___ have played a significant role in reducing trade barriers.

The World Trade Organization (WTO) and economic reforms

True or False: The concept of a 'global village' implies that national economies remain isolated from one another.

False. The concept of a 'global village' implies that national economies are merging into a borderless world economy.

Riddle: I connect distant lands and make trade possible, my advancements span the globe, making collaboration feasible. What am I?

Technological advancements in communication and transportation.

Short Answer: How has the integration into a global village affected businesses?

It has made it easier for businesses to operate internationally, offering them vast opportunities for growth and profit.

Fill in the blank: The reduction of trade barriers promotes ___ among countries.

Cooperation

What distinguishes international business from domestic business?

International business involves activities conducted across national boundaries, while domestic business involves transactions within a country's borders.

International business encompasses trade in goods and services, as well as ___ and ___ activities.

Production and foreign investment activities

True or False: International trade consists only of the exchange of goods.

False; international trade also includes services, capital, personnel, technology, and intellectual property.

Fill in the blanks: Companies invest in foreign markets to produce goods and services ___ to international customers, reducing costs and enhancing ___ .

Closer; service

Riddle: I can be tangible or intangible, crossing borders with ease. I bring nations together through exchange. What am I?

International business

What are some examples of services that are now part of international business?

Travel, banking, and advertising

Fill in the blank: The traditional definition of international business primarily focused on ___ and ___ .

Imports; exports

Short Answer: What role does international business play in enhancing service to customers?

It allows companies to produce goods and services closer to customers, which reduces costs and improves service delivery.

Countries engage in international business primarily because they cannot produce everything they need ___ and cost-effectively.

Equally well

The principle that countries specialize in the production of goods they can make most efficiently is called ___ specialization.

Geographical

True or False: Labor-abundant developing countries typically import garments from developed nations.

False; they typically export garments.

Firms participate in international business to buy goods at lower costs abroad and to sell in markets where their products fetch ___ prices.

Higher

Riddle: I am the reason why West Bengal grows jute and Maharashtra produces cotton textiles. What am I?

Geographical specialization

The differences in productivity and production costs among countries are influenced by various ___ factors.

Socio-economic, geographical, and political

Fill in the blank: Countries trade with one another to obtain goods that they do not produce ___ or efficiently.

Well

What motivates both nations and firms to participate in international business beyond just price advantages?

Other benefits such as access to markets, resources, and technology.

What are the key challenges faced by international businesses compared to domestic businesses?

International businesses face complexities due to differing political, social, cultural, and economic environments across countries, making it difficult to apply domestic strategies directly.

Fill in the blanks: The nationality of buyers and sellers in international business is ____, while in domestic business it is _____.

Different countries; the same country