True or False: The socio-cultural environment has no impact on the success of international businesses.

False. The socio-cultural environment significantly impacts the success of international businesses, as consumer preferences vary across cultures.

What are the two main categories of the business environment?

Micro environment (internal environment) and Macro environment (external environment).

What is comparative advantage in the context of global trade?

Comparative advantage boosts trade.

• Lower production costs.

• Encourages specialization.

• Increases global efficiency.

Fill in the blank: The major macro-economic factors influencing business include economic growth, interest rates, and ___ exchange rates.

Currency

What impact did the liberalization of trade have on international business?

Liberalization of trade reduced restrictions on cross-border movements, allowing companies to better access international markets and opportunities.

True or False: The technological environment only refers to the production methods and does not include new product development.

False. The technological environment encompasses both new production methods and the development of new products.

What factors contribute to the slow growth of exports in India according to recent surveys?

Factors impact India's export growth.

• Lack of marketing information.

• Inadequate infrastructure facilities.

• Procedural complications hinder exports.

What are the consequences of a mounting trade deficit for a country?

A mounting trade deficit can lead to increased foreign debt, currency depreciation, and potential economic instability.

Fill in the blank: The micro environment of business includes customers, suppliers, and ___ who influence company performance directly.

Competitors

How does international trade foster cooperation among countries?

International trade fosters cooperation.

• Builds mutual relationships.

• Reduces trade barriers.

• Encourages global collaboration.

What are the implications of the growth in emerging markets for international trade?

Growth in emerging markets boosts trade.

• Increased global market size.

• Fosters innovative companies worldwide.

• Enhances competitive dynamics globally.