Class 11 Business Studies - KERALA
International Business
The chapter 'International Business' introduces Class 11 students to the scope, nature, and importance of business activities beyond national boundaries. It explores why nations engage in international 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 will also learn about important support services, documents used in export-import transactions, and major international institutions like the WTO and World Bank. This chapter is vital for Kerala SCERT board exams as it features regularly in short-answer, essay-type, and case-study questions.
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 according to its specifications.
Joint Venture
A business arrangement in which two or more firms agree to pool their resources and expertise to accomplish a specific task or enter a foreign market.
Bill of Lading
A document issued by a shipping company acknowledging the receipt of goods for shipment and serving as a contract of carriage.
Letter of Credit
A guarantee issued by the importer's bank promising to pay the exporter the specified amount upon presentation of shipping documents.
Important Formulas
Board Exam Info
In the Kerala (SCERT) Class 11 Business Studies examination, this chapter typically carries around 8 to 12 marks. Questions frequently include direct distinctions between domestic and international business, explanations of entry modes like joint ventures and franchising, and procedures/documents involved in export-import trade.
Frequently Asked Questions
What is the main difference between domestic business and international business?
Why do companies prefer to enter international markets?
Companies go global to seek growth opportunities, achieve economies of scale, overcome intense competition in the domestic market, utilize surplus capacity, and improve the quality of their products to meet global standards.
What is a Bill of Lading and who issues it?
A Bill of Lading is an official document issued by the shipping company (or its agent) that acts as a receipt of goods, a document of title, and a contract of carriage for transporting goods internationally.
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