Discuss any three advantages of international business.

Solution

The advantages of international business are as follows :

1. The first important advantage of international business is that all countries cannot produce equally well or cheaply all they need because of unequal distribution of natural resources among them or differences in their productivity level. Hence, due to international business, it becames possible that a country being in a better position to produce better quality products can export these products to other countries and can import these products which it can not advantageously make. This gives them cost and quality advantage.

2. International business helps a country to earn foreign exchange which it can later use for meeting its import of different goods and services.

3. International business can be more profitable as compared to domestic business. Business firms can earn more profits by selling those products in other countries at relatively higher prices in which they have comparative advantage over other.

Some More Questions From International Business - I Chapter

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International Business - I

Discuss any three advantages of international business.

Some More Questions From International Business - I Chapter

_________ provides information to customer.

__________ activities are those activities under which goods and services are sold.

The activities which help in smooth flow of trade are know as __________.

__________ industry makes use of products which are extracted and produced by primary sector as their raw material and produce finished products.

Define “global village”.

Give meaning of International Business.

Give the types of mode of entry into International Business.

Give meaning of merchandise export and import.

Give meaning of service exports and imports.

Give meaning of direct exporting.

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