Everyone wants to expand their market share and to sell more and more products. The importance of International business lies in the fact that you get a new market to enter and to expand in. No matter what was your position in the old market, the new market is a new playing field for any company.
2) Non-availability of product in new market
unique product - 2
A major advantage the company can have is that the product it produces is not available in the international market which the company is targeting. The firm, therefore, has a “production advantage” which it can use to maximum benefit. As a result, it is one of the benefits of the International business that the firm can establish a monopoly or a duopoly in the target market, thereby generating a lot of revenue.
3) Cost advantage
Many times, there is a cost advantage of exporting products to a different country. This cost advantage is apparent in the way China is operating in today’s business environment. The benefits of International business are huge to Chinese companies because their cost of production is very low. One of the major contributors is their low Labour cost due to which Chinese equipments are able to match any rates in the International market.
-Expand and diversify: International business can expand and diversify its activities. This is because it earns very high profits. It also gets financial help from the government.
-Increase competitive capacity: International business produces high-quality goods at low cost.
-Earn foreign exchange: International business exports its goods and services all over the world. This helps to earn valuable foreign exchange. This foreign exchange is used to pay for imports. Foreign exchange helps to make the business more profitable and to strengthen the economy of its country.
Answers & Comments
Answer:1) Market expansion
Everyone wants to expand their market share and to sell more and more products. The importance of International business lies in the fact that you get a new market to enter and to expand in. No matter what was your position in the old market, the new market is a new playing field for any company.
2) Non-availability of product in new market
unique product - 2
A major advantage the company can have is that the product it produces is not available in the international market which the company is targeting. The firm, therefore, has a “production advantage” which it can use to maximum benefit. As a result, it is one of the benefits of the International business that the firm can establish a monopoly or a duopoly in the target market, thereby generating a lot of revenue.
3) Cost advantage
Many times, there is a cost advantage of exporting products to a different country. This cost advantage is apparent in the way China is operating in today’s business environment. The benefits of International business are huge to Chinese companies because their cost of production is very low. One of the major contributors is their low Labour cost due to which Chinese equipments are able to match any rates in the International market.
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Answer:
-Expand and diversify
-Increase competitive capacity
-Earn foreign exchange
Explanation:
-Expand and diversify: International business can expand and diversify its activities. This is because it earns very high profits. It also gets financial help from the government.
-Increase competitive capacity: International business produces high-quality goods at low cost.
-Earn foreign exchange: International business exports its goods and services all over the world. This helps to earn valuable foreign exchange. This foreign exchange is used to pay for imports. Foreign exchange helps to make the business more profitable and to strengthen the economy of its country.