Janelle Caye S.

Morales
1MM1 NON ABM
INTERNATIONAL BUSINESS AND TRADE
1. Define domestic business, international business and global dependency.
- Production, distribution, acquisition of goods and services and other business activities take place
within a country’s borders. These business activities that takes place within a country is called
domestic business. If you purchase goods that are made and services that are offered in your
country, you are said to be participating in a domestic business.

- If you buy from a local store some goods made from other countries, you are involved in a global
economy. Business activities that needed to create, ship, and sell goods and services across national
borders is called international business. Other terms of international business include international
trade, global business, and foreign trade.

- Global Dependency refers to the Mutual dependence between two countries at a global level, with
one country depending on another country for trading of goods and services, and creating global
interdependence.
2. How does domestic business differ from international business?
- Domestic business refers to economic activities that take place entirely within a nation's borders.
Economic transactions that take place outside of a nation's borders are referred to as international
business.
3. How are you affected by international business?
- International trade also includes innovative opportunities to overseas markets and intensifies rivalry in
domestic ones. Companies are pushed to innovate and use resources more effectively by global
competition. International trade exposes consumers to a wide range of products and services.
4. What factors affect a country’s decision to trade goods and services with another
country?
-The choice of a company to trade overseas is influenced by exchange rates, competitiveness, increasing
globalization, tariffs and trade barriers, transportation costs, languages, cultures, and different trade
agreements. The price of one currency in relation to another is known as the exchange rate.
5. Define imports, exports, and trade barriers.
- Products bought from businesses in other countries are called imports.
-Products that are sold in other countries are called exports.
-Trade barriers are restrictions that reduce free trade among countries.
6. What cultural factors affect international business activities?
- Culture, etiquette, religion, language, consumer preferences, educational attainment, social
conventions and traditions, and attitudes toward imported goods and services are the main
sociocultural aspects that have a considerable impact on international enterprises.
7. Name the factors that influence a country’s economic conditions.
- A country's economic conditions are influenced by numerous macroeconomic and microeconomic
factors, including monetary and fiscal policy, the state of the global economy, unemployment levels,
productivity, exchange rates, inflation and many others.
8. How could geography create international business opportunities?
- Geography is more than names on a map. Knowledge of geography will help you
understand how the climate and terrain of a country can affect transportation, housing, and
other business activities. The climate, terrain, seaports, and natural resources of a country influence
business activities. Very hot weather limits the types of crops that can be grown. It also restricts the
types of businesses that can operate in that climate. A hot, sunny climate is critical for growing tropical
fruit, but not suitable for a ski resort. Mountainous terrain offers opportunities for mining but limits the
amount of land available for crops. A country with many rivers or seaports is able to easily ship products
for foreign trade. Countries with few natural resources must depend on imports.
9. What responsibilities do you believe people have as citizens in our global economy?
- Responsibility for advocating for the implementation of international agreements, conventions,
treaties related to global issues: Global citizens have the responsibility to advocate for having their
countries ratify and implement the global agreements, conventions, and treaties that they have signed.
As a consumer and worker involved in international business, you have an obligation to act
responsibly like following ethical business practices. The decisions you make are likely to have an impact
locally and around the world.
10. What actions might a country take to encourage other countries to buy its goods and
services?
- Through building strong relationships with foreign businesses through trade, investment, and
awareness of the local culture, as well as by establishing offices there.