Class 11 Business Studies - CBSE
International Business
The chapter 'International Business' in CBSE Class 11 Business Studies explores the nature, importance, and scope of business activities beyond national borders. It explains why countries engage in global trade, the difference between domestic and international business, and the various modes of entry into international markets such as exporting, franchising, joint ventures, and wholly owned subsidiaries. Students also learn about key support institutions, World Bank, IMF, and WTO that facilitate global trade. This chapter is vital for board exams as it tests analytical understanding of globalization, bringing steady 4 to 6-mark questions in the final exams.
Start Learning FreeKey Concepts
International Business
Business activities that involve cross-border transactions of goods, services, capital, and resources between two or more nations.
Contract Manufacturing
A mode of entry where a firm enters into a contract with local manufacturers in foreign countries to produce goods as per its specifications.
Joint Ventures
A business arrangement where two or more firms agree to pool their resources and expertise to achieve a specific business objective globally.
World Trade Organization (WTO)
A global international organization dealing with the rules of trade between nations, established to promote free and predictable international trade.
Bill of Lading
A document issued by a shipping company acknowledging the receipt of goods for shipment and serving as a contract of carriage.
Important Formulas
Board Exam Info
In the CBSE Class 11 Business Studies exam, this chapter typically carries around 5 to 8 marks. Questions generally include distinguishing between domestic and international business, explaining modes of entry into global markets, or detailing documents used in export-import procedures.
Frequently Asked Questions
What is the main difference between domestic and international business?
Domestic business takes place within a country's borders using a single currency and national laws, whereas international business involves cross-border transactions across multiple countries, currencies, and legal systems.
What is a Letter of Credit (LoC)?
A Letter of Credit is a guarantee issued by the importer's bank to the exporter's bank stating that the payment will be made upon the fulfillment of export terms and submission of required documents.
Why do companies prefer to enter international markets?
Companies expand globally to seek higher profits, utilize excess production capacity, overcome saturation in domestic markets, acquire better technology, and reduce overall operational costs.
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