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What are the benefits of international trade to firms?

Answer:

Ans.     Given below are benefits of international business for firms:

1. Prospects for higher profits: It creates better prospects for higher profits.

2. Increased capacity utilisation: It leads to better utilisation of capacity.

3. Prospects for growth: It creates better prospects for growth.

4. Way out to intense competition in domestic market: International business acts as an alternate when there is intense competition in domestic market.

5. Improved business vision: When a business firm acts globally, it gives it an improved business vision.