Benefits of International Business

  Benefits to countries

• Foreign Exchange: It assists a country in earning foreign exchange, which may then be utilized to buy capital goods, technology, and other products from foreign countries.
• More Efficient Resource Utilization: It is based on the comparative cost advantage theory. It entails producing what your country can produce more efficiently and trading the surplus production with other countries to purchase what they can produce more efficiently. In this way, countries can make better use of their resources.
• Growth Possibilities and Job Opportunities: Countries can enhance their manufacturing capacity to supply commodities to other countries through external trade. If external trade holds, the production will rise, increasing the GDP level of the country, resulting in economic growth. With more production, the demand for more labor also rises. Therefore, the international business also creates job opportunities. 
• Improved Standard of Living: International business allows individuals to consume goods and services from other countries. Consumption of a variety of goods and services improves the standard of living of the people. 

 Benefits to firms

• Profit Opportunities: When compared to local business, international business is more profitable. When domestic prices are lower, businesses can make more money by selling their products in other countries.
• Increased Resource Utilization: Many enterprises anticipate international growth and get orders from foreign clients to set up production capabilities for their products that are more in demand in the local market. It enables them to better utilize their excess resources. 
• Growth Prospects: When demand falls or the domestic market reaches saturation point, business enterprises become irritated. By expanding internationally, such businesses can increase their growth potential significantly.
• Decrease Competition: When domestic competition is fierce, internationalization appears to be the only option to achieve success and required growth. Many businesses are motivated to expand into overseas markets because of the fierce competition in the domestic markets.
• Improved Business Vision: Many firms’ existence and goodwill depend on their ability to expand their worldwide business. The desire to expand and diversify, as well as to take advantage of the strategic advantages of internationalization, is expressed in the desire to become more international.           

International business refers to those business activities that take place beyond the geographical boundaries of a country. It involves not only the international movements of goods and services but also capital, technology, IP like patents, trademarks, copyright, etc.  
For example, India selling agricultural products to foreign countries is an international business. Advancements in technology and better communication facilities have increased international business with great success in various countries. International business provides a wide market range to organizations and gives them an opportunity to satisfy the needs of customers all over the world.