Mendoza, Cedrick C.

ACTCY31S1

1.) What are the factors accounting for the economic development of advanced nations in international
business?
The primary factor for the economic development is market. A market is a place wherein
goods and services in exchange of money occurs. It also creates buyer-seller relationship. However, it
does more than that such as it also increases employment. Based on the case study, exporting opens new
markets to increase its sales. This effect will result into a higher employment rate since jobs will be more
open because it is expected that there will be a higher need for manpower in an exporting company.

2.) How are imports affected by international business?

If the markets do not get involved with international trading, their economies will be left
behind. The activities in international trading does not only involve exports but imports are also important
since the goal of international business is to eliminate or mitigate rivalry as much as possible and help
each country to develop and also offers a wide range of products for the consumer.

3.) How does international business create a win-win situation to countries involved? Briefly state the
importance of international free trade.
International business can create a win-win situation if mutual dependencies of the
countries are present. Imports and exports play a huge role in creating a win-win situation in international
trading. An import may be an outflow of resource for the specific country but the cost of it will be
benefited by the other country and the same will occur. Therefore, it is a win-win situation.