Question

Well-develop explanation:

1. Explain: What would you do to make it better for USA and China to work together in International Business.

Answer 1

Answer- International business refers to economic transactions taking place between two or more countries or exchange of goods or services actoss the national boundaries. For conduction international business together there must be a lot of team work involved otherwise it won’t work and will eventually lead to a total fiasco. Following are some of the things oke can do for making it better for USA and Chine to do international business together-

• Certain boundaries should be made and taks need to be divided that is who will do what. The country which has cheap labor like china should setup manufacturing units in it’s countries and USA should setup manufacturing units and research centres as it has tremendous skilled workers and also the wage rate is high.

•They must enter into a proper mutual agreement regarding their trade. And goods produced by one country should be sold to other country at a much cheaper price than what it is sold to the rest of the nations.

• Both the nations should make their market as one huge market and their should be some norma telated to entry and exit. This will help them market the products efficiently.

• Since USA and Chine are far away from each other thus there should be proper transport system that ensure that goods are delivered on time and the cost involved should also be considered.

• A feasibility study should be conducted to ensure that the business to be conducted is economically sound and is beneficial to both the countries and not just one.

• Also the currency exchange problems should also be discussed otherwise it wil not be beneficial for one country whose currency becomes weak as compared to the other currency.

• Also the custom work involved at the airport or shipping ports the rules and regulations should be clearly mentioned in the agreement or contract so that it won’t lead to any confusion.