Business Notes Chapter 4.docx - Chapter 4 What is International Business A domestic transaction is the selling of an item produced in the same country

Business Notes Chapter 4.docx - Chapter 4 What is...

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Chapter 4 What is International Business A domestic transaction is the selling of an item produced in the same country. An international transaction is the selling of items produced in other countries. These items contribute to the global economy. Benefits for Business -Access to markets -Cheaper labour -Increased quality of goods -Increased quantity of goods -Access to resources Access to Markets By trading abroad, Canadian businesses can gain access to markets that are 200 times larger than those at home. Customers in other parts of the world have different needs and wants. Businesses must make adaptions to their products and services to be successful in other countries. A global product is a standardized item that is offered in the same form in all countries. Cheaper Labour Lower prices, as the result of cheaper labour in other countries is the number on reason why consumers buy items made in different parts of the world. Increase Quality of Goods International business can help producers improve their quality of the products that they sell. Increase Quantity of Goods As long as a product has international appeal, so does the potential for increased sales. Access to Resources Connections to international markets provide businesses with increased access to the three types of economic resources: natural, human and capital. The Five P’s of International Business All countries benefit when businesses produce specialized goods and services that appeal to consumers. International business provides increased markets for businesses and offer them broader choice of products, services and prices for its consumers Product A country’s resources determine what goods and services it provides
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Price The cost of producing goods and services varies from country to country. Sometimes
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