Class 11 Business Studies - PUNJAB
International Business
The chapter 'International Business' in Class 11 Business Studies (PSEB) explores how companies conduct trade and commercial activities beyond national borders. It highlights the driving forces behind globalization, the distinction between domestic and international business, and the benefits and challenges of entering global markets. Students will learn about important modes of entry into international business like exporting, franchising, and joint ventures, alongside major international trade institutions such as the WTO, IMF, and World Bank. This chapter is vital for board exams as it tests both theoretical concepts and practical understanding of modern trade mechanisms.
Start Learning FreeKey Concepts
International Business
Business activities that take place across national boundaries, involving the commercial exchange of goods, services, and capital between two or more countries.
Outsourcing
A business practice where a company hires external service providers (often in other countries) to perform tasks that could be done in-house, such as IT support or customer care.
Joint Venture
A business arrangement in which two or more firms agree to pool their resources for accomplishing a specific task, sharing risks, control, and profits.
World Trade Organization (WTO)
An international organization established to promote global free trade, settle trade disputes between member nations, and implement trade agreements.
Letter of Credit
A payment guarantee issued by a bank on behalf of the importer, ensuring that the exporter will receive payment upon timely submission of shipping documents.
Important Formulas
Board Exam Info
In the Punjab School Education Board (PSEB) Class 11 Business Studies examinations, this chapter typically carries around 6 to 8 marks. Questions usually include objective-type questions, short-answer questions on modes of entry or WTO functions, and long-answer questions detailing the export-import procedure.
Frequently Asked Questions
What is the main difference between domestic business and international business?
Domestic business takes place within the boundaries of a single country, using the same currency and facing uniform laws. International business involves multiple countries, diverse currencies, varying legal systems, and higher cultural and political risks.
What are the primary documents required for importing goods?
Key documents include the Import License, Indent (purchase order), Letter of Credit, Bill of Lading, Certificate of Origin, and Commercial Invoice.
Why do companies prefer to enter international markets?
Companies expand globally to seek higher profits, utilize excess production capacity, access cheaper raw materials or labor, bypass domestic trade barriers, and diversify business risks.
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