Slides
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Part 1: why firms and nations do business across borders, and how a firm can enter a foreign market.
In this lesson you will
International business means business activities, such as trade, manufacturing and investment, carried on across the boundaries of countries.
| Term | Meaning |
|---|---|
| International business | Business activities carried on across national boundaries: trade, manufacturing abroad and investment |
| International trade | Exchange of goods and services between countries; one part of international business |
| Internal trade | Buying and selling inside the boundaries of one country |
| Cause | Idea | Imagined illustration |
|---|---|---|
| Unequal natural resources | A country lacks what another has in plenty | Kolmark has iron ore but little farmland |
| Differences in productivity and cost | Workers and factories differ in output and cost | A Tesoria worker grows more tea than a Kolmark worker |
| Specialisation | Each country concentrates on what it makes best and trades for the rest | Tesoria grows tea; Kolmark weaves cloth |
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