Introduction to international business
| English | Chinese | Pinyin |
|---|---|---|
| international business/ˌɪntəˈnæʃənl ˈbɪznəs/ | 国际商务 | guó jì shāng wù |
| imports/ɪmˈpɔːts/ | 进口 | jìn kǒu |
| exports/ˈekspɔːts/ | 出口 | chū kǒu |
| comparative advantage/kəmˈpærətɪv ədˈvæntɪdʒ/ | 比较优势 | bǐ jiào yōu shì |
| exporting/ekˈspɔːtɪŋ/ | 出口 | chū kǒu |
| joint venture/dʒɔɪnt ˈventʃə/ | 合资企业 | hé zī qǐ yè |
Crossing a border changes the decision
- International business 国际商务 involves buying, selling, investing, or operating across national borders.
- A firm may enter another country to reach new customers, find suppliers, access skills, or spread risk across markets.
- A larger market is not automatically a better market. The firm must understand demand, rules, costs, and local competitors.
A map can show a border; it cannot complete the customs form.
Trade links specialisation
- Imports 进口 are goods or services bought from another country. Exports 出口 are goods or services sold to another country.
- Comparative advantage 比较优势 means a country or business can produce something at a lower opportunity cost than another. It encourages specialisation and trade.
- Trade can offer more choice and lower costs, but it can also expose a firm to transport delays and overseas supplier risks.
Match the trade term to its meaning.
The direction is from the viewpoint of the home business or country.
Comparative advantage concerns lower opportunity cost, not simply producing the most units.
It explains why specialisation and exchange can benefit trading partners.
Choose an entry route
- An exporting 出口 strategy sells from the home market into another market. It can be a lower-commitment way to test demand.
- A joint venture 合资企业 is an arrangement where organisations share a new project or business. A local partner may bring knowledge and contacts.
- A foreign subsidiary gives more control, but normally needs more money, knowledge, and commitment.
Which route can test overseas demand with lower commitment?
Exporting can provide evidence before a larger investment.
A bicycle-accessory business receives online orders from another country. It begins by exporting a small range, tests delivery time and returns, then considers a local partner only after it has evidence of regular demand.
The route matches the uncertainty: first learn cheaply, then commit more if the market proves real.
Before entering a foreign market, what should the firm understand? Choose all that apply.
International expansion changes the information a firm needs.
Write one English sentence explaining why the bicycle-accessory business should export first.
Example: “Exporting a small range lets the firm test regular overseas demand before paying for a local operation.”
Market opportunity → entry route → reason. “The firm exports first because it can test overseas demand without paying to build a full local operation” is a complete judgement.
Do not assume a product successful at home will succeed unchanged abroad. Price, language, law, culture, and distribution can all alter the offer.