Class 11 Business Studies - TELANGANA
International Business
The chapter 'International Business' in Class 11 Business Studies for Telangana (TSBSE) students explores the nature, scope, and significance of business activities beyond national borders. It explains the driving forces of globalization, the difference between domestic and international business, and the various modes of entry into international markets such as exporting, importing, licensing, franchising, joint ventures, and wholly owned subsidiaries. Students also learn about key international trade institutions, documents used in export-import procedures, and the World Trade Organization (WTO). This chapter is crucial for board exams as it tests both theoretical concepts and practical trade documentation.
Start Learning FreeKey Concepts
International Business
Business activities that involve commercial transactions between two or more countries, crossing national boundaries.
Globalization
The process of integration of the economy of the world through the free flow of goods, services, technology, capital, and labor.
Contract Manufacturing
A mode of entry where a firm enters into a contract with local manufacturers in foreign countries to get products produced as per their specifications.
Joint Venture
A business arrangement in which two or more firms agree to pool their resources for accomplishing a specific task, sharing ownership, control, and profits.
Bill of Lading
A document issued by the shipping company acknowledging the receipt of goods on board and giving an undertaking to deliver them at the port of destination.
World Trade Organization (WTO)
An international organization established in 1995 to promote free trade globally by setting rules for international trade and resolving disputes.
Important Formulas
Board Exam Info
In the Telangana (TSBSE) Class 11 Business Studies board exams, this chapter typically carries around 8 to 12 marks. Questions frequently include Very Short Answer Questions (2 marks), Short Answer Questions (4 marks), and occasionally Long Answer Questions (8 marks) focusing on the modes of entry into international business or the export-import procedure.
Frequently Asked Questions
What is the main difference between domestic and international business?
Domestic business takes place within the boundaries of a single country, using one currency and subject to one set of laws. International business involves transactions across national borders, dealing with multiple currencies, varied legal frameworks, and cultural differences.
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 for goods will be made upon the presentation of prescribed shipping documents.
Why do companies prefer to enter international markets?
Companies expand internationally to seek new markets, increase profits, utilize excess production capacity, access cheaper raw materials and labor, and reduce dependence on a single domestic market.
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