question_answer 12)

Discuss any three advantages of international business.

Answer:

For Nations Three advantages of international business to the nations are (i) International business helps a country to earn foreign exchange which it can later use for meeting its imports of capital goods, technology, petroleum products, etc. (ii) International trade allows a country to produce what a country can produce more efficiently, and trade the surplus production so generated with other countries to procure what they can produce more efficiently. (iii) International business helps the countries in improving their growth prospects and creates employment opportunities. For Firms Three advantages of international business to the firms are (i) International business can be more profitable than the domestic business as business firms can earn more profits by selling their products in countries where prices are high. (ii) International business leads to fuller utilization of production capacity as a result these firms get benefits of large economies of scale and reduction in the cost of production. (iii) Companies get strategic and technical advantages by going international.