Question

Explain any two natures of International Business.​

Answer 1

Answer:

Explain the nature of International Business. The saliant features of International Business are as follows : (i) Exchange of Goods : It involves purchase of goods and sale of goods. Purchase of goods, from a foreign country is known as import trade and sale of goods to another country is known as 'export trade'.

Answer 2

Answer:

1. Exchange of Goods : It involves purchase of goods and sale of goods. Purchase of goods, from a foreign country is known as import trade and sale of goods to another country is known as ‘export trade’. But when the goods are imported from a country with the objective of exporting them to some other country is known as ‘entrepot trade’.
2. Involvement of two countries : International trade is carried on mostly in large quantities both on government to government account and on private account involving individuals and business houses.
3. Foreign Currency : Payment for imported goods is made in foreign currency. Similarly, payment for export of goods is received in foreign currency. In India conversion of money is regulated by RBI.