Students who are looking for answers to the questions listed in Chapter 11 of NCERT Class 11 Business Studies textbook can access them on Extramarks. India’s leading online learning platform, Extramarks, offers NCERT Solutions for Class 11 Business Studies Chapter 11 that are prepared by subject matter experts. The answers are written in a simple and easy to comprehend language. Students can use these solutions as last-minute study material or to revise Chapter 11.
Class 11 NCERT Solutions Business Studies – Chapter 11
Access NCERT Solutions for Class 11 Business Studies Chapter 11 – International Business
NCERT Solutions for Class 11 Business Studies- Chapter 11- International Business
Chapter 11 International Business introduces students to the differences between international trade and business, their advantages, export and import business, how to secure export payments, and many more related topics.
There are questions given at the end of the chapter in NCERT textbook to help students gauge their understanding of the concepts studied. NCERT Solutions for Class 11 Business Studies Chapter 11 help students in finding the right answers to these questions.
Significance of Class 11 Chapter 11
Chapter 11 of Class 11 Business Studies focuses on International Business and various significant aspects associated with the trade. The chapter explains the opportunities and necessities of International Business and how one can start a business globally. The chapter is of vital importance from the examination perspective as well as to enhance the knowledge of students about international business.
International Business
International Business is the trading system between two or more nations. In this trading system, the goods are traded between two or more countries and monetary transactions are involved. The trading is done in the currency of the country that is importing the goods. There are legal procedures and restrictions involved in international business.
There are three types of international business:
Need for International Business
There are many reasons why international business is a need in today’s world.
- Not all countries can produce the items they require at a cheaper cost.
- Every country is not equally enriched with natural resources.
- The amount and quantity of labour, capital, and raw material vary in different countries.
- All countries are different in terms of socio-economic, political, and demographic scenarios.
Scopes and Benefits
International business carries ample scope and benefits in –
- Exportation and importation of services and materials.
- Franchise and licence
- Foreign investments like portfolio investments and direct investments
Modes of Entering
There are several ways to enter the world of international business with each having its own advantages and disadvantages. Let us have a look at the various mediums of entering into International Trade.
- Contract manufacturing
- Joint business ventures
- Creating owned subsidies
- Licencing and franchising
India has reached new heights in international trade with the help of a New Economic Policy of globalisation and liberalisation. The foreign currency exchange in GDP has seen a massive hike. Along with these, export and import businesses also have experienced lucrative changes. The percentage of exports has increased remarkably.
Solved Examples
- Which mode of entry amongst the options given below has a higher risk involved?
- Licensing
- Franchising
- Joint venture
- Contract manufacturing
Ans. Contract manufacturing
- Which country amongst the options given below is not a major trading partner of India?
- USA
- UK
- Germany
- New Zealand
Ans. New Zealand