Olivar,Marjorie M.

Bsentoumn 3-3

Assignment:
1. Corporation means- large business or company
A corporation is a legally established entity that can enter into contracts, own assets and
incur debt, as well as sue and be sued—all separately from its owner(s). Because it is
defined by law, a corporation can technically exist forever.

2. International Business
refers to any business that operates across international borders. At its most basic, it
includes the sale of goods and services between countries.
3. Trade
buying and selling, or exchanging, goods and/or services between people or countries.
4. International Business and trade
refers to the exchange of goods, services, and capital across national borders. It
involves transactions between businesses located in different countries, often
influenced by factors such as government policies, trade agreements, exchange rates,
and cultural differences.
a. Nature: International business trade involves the exchange of goods, services, and
capital between businesses located in different countries. It is driven by factors such as
globalization, advancements in technology, and the pursuit of economic opportunities
across borders.
b. Purpose: The primary purpose of international business trade is to facilitate the
exchange of goods, services, and capital between nations to satisfy the needs and
wants of consumers globally. It allows businesses to expand their markets, access
resources, and tap into new opportunities for growth and profitability.
c. Benefits:
-Economic Growth: International trade fosters economic growth by enabling countries to
specialize in producing goods and services where they have a comparative advantage,
leading to increased efficiency and productivity.
- Market Expansion: It provides businesses with access to larger markets beyond their
domestic borders, allowing them to reach more customers and generate higher
revenues.
-Resource Utilization: International trade allows countries to access resources, such as
raw materials, technology, and skilled labor, that may be scarce or unavailable
domestically, thereby enhancing productivity and competitiveness.
- Competitive Advantage: Engaging in international trade encourages businesses to
innovate, improve quality, and reduce costs to remain competitive in global markets.
- Cultural Exchange: International trade promotes cultural exchange and understanding
between nations as people from different backgrounds interact through business
transactions.
- Diplomatic Relations: Trade can also serve as a diplomatic tool, fostering cooperation
and collaboration between countries and helping to maintain peaceful international
relations.