Below are given some activities relating to business. Some of them are correct and some are wrong. Which of them are wrong and which are right ?

A.

Business involves only sale and purchase of goods. It does not play any role in the national integrity.

B.

Business does not bring about any improvement in the standard of living of people.

C.

Industrial research may bring the development of new products.

D.

Business does not allow to import goods from foreign countries.

E.

Business helps in reducing poverty by providing opportunity for employment.

F.

It improve the image of a country by exhibiting/sale of product in international fairs and exhibitions.

1. Easiest way of getting entry into international market.

2. It is less complex.

3. It requires less investment.

4. Exposure to risk is nil.

Demerits of exporting and importing :

1. It involves additional cost in the form of packaging, transportation and insurance costs.

2. Exporting is not a feasible option when import restrictions exist in a foreign country.

3. The export firms do not have much contact with the foreign market.

1. In this the Licensor or does not make any investment in other country.

2. Licensor does not suffer any losses.

3. Lower risks of government takeovers.

4. Licensee has greater market knowledge being a local person.

5. Other firms cannot copy the patents or trademark given to licensee/franchisee.

Disadvantages of Licensing/franchising :

1. Licensee may start his personal business for an identical product under a slightly different brand name.

2. Trade secrets can be leaked out to others in the foreign markets.

3. Conflicts may take place between licensor/franchisor or licensee/franchisee.