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11th Standard English Medium Commerce Subject International Business Creative 2 Mark Questions with Solution Part - II updated Creative Questions

Published on: 13/05/2022

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Creative Questions in class 11 Commerce Subject. It will helps to get more idea about question pattern in every Creative questions with solution.

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Download Tamil Nadu 11th Standard Commerce question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

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Std: 11th Standard - Commerce

chapter: - Creative Questions

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Questions:

Generic 2

5 x 2 = 10

How does domestic and international business differ on the basis of currency used?

What is out sourcing?

What is Joint-Venture?

What is Licensing?

What are the three important divisions of foreign trade?

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Answers Key:

Generic 2

5 x 2 = 10

In domestic business transactions are settled by local currency of a country whereas in international business transactions are settled by foreign currencies.

It connotes a type of international business where a firm enters into a contract with one or few local manufacturers in foreign countries in order to get certain components of goods produced according to its specifications. It is also called as contract manufacturing or outsourcing.

A Joint - Venture is a business agreement wherein parties agree to develop a new entity and asset subscribing to equity shares and thereby exercising control over enterprise, and sharing revenue, expenses, and assets.

Licensing is a contractual agreement wherein one firm grants access to its plants, trade secrets, or technology to another firm in a foreign country, for a fee called royalty.

On the basis of sales and purchase of goods and services, international trade can be divided into three kinds. They are export trade, import trade and entrepot trade.