ADVANTAGES OF INTERNATIONAL BUSINESS:
Though international business are most important for a country’s economy but there are some advantages and disadvantages of international business which are described in detail below Following are the advantages of international business:
Earning valuable foreign currency: A country is able to earn valuable foreign currency by exporting its goods to other countries.
Division of labor: International business leads to specialization in the production of goods. Thus, quality goods for which it has maximum advantage.
Optimum utilization of available resources: International business reduces waste of national resources. It helps each country to make optimum use of its natural resources. Every country produces those goods for which it has maximum advantage.
Increase in the standard of living of people: Sale of surplus production of one country to another country leads to increase in the incomes and savings of the people of the former country. This raises the standard of living of the people of the exporting country.
Benefits to consumers: Consumers are also benefited from international business. A variety of goods of better quality is available to them at reasonable prices. Hence, consumers of importing countries are benefited as they have a good scope of choice of products.
Encouragement to industrialization: Exchange of technological know-how enables underdeveloped and developing countries to establish new industries with the assistance of foreign aid. Thus, international business helps in the development of industry.
International peace and harmony: International business removes rivalry between different countries and promotes international peace and harmony. It creates dependence on each other, improves mutual confidence and good faith.
Cultural development: International business fosters exchange of culture and ideas between countries having greater diversities. A better way of life, dress, food, etc. can be adopted form other countries.
Economies of large-scale production: International business leads to production on a large scale because of extensive demand. All the countries of the world can obtain the advantages of large-scale production.
Stability in prices of products: International business irons out wide fluctuations in the prices of products. It leads to stabilization of prices of products throughout the world.
Widening the market for products: International business widens the market for products all over the world. With the increase in the scale of operation, the profit of the business increases.
Advantageous in emergencies: International business enables us to face emergencies. In case of natural calamity, goods can be imported to meet necessaries.
Creating employment opportunities: International business boosts employment opportunities in an export-oriented market. It raises the standard of living of the countries dealing international business.
Increase in Government revenue: The Government imposes import and export duties for this trade. Thus, Government is able to earn a great deal of revenue from international business.
Effective business education
Improvement in production systems. Elimination of monopolies, etc.
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