Question

Discuss any three advantages of international business.

Answer 1

The following are the advantages of international business.

(a) Medium for earning foreign exchange: By facilitating the exchange of goods and services in the international market, the international business acts as a medium for acquiring sufficient foreign exchange reserves for nations. This in turn enables them to import goods that may not be available domestically—for example, technology, capital goods, and petroleum products.

(b) Tool for speeding up economic growth: As international business provides a big platform to countries and local producers to cater to the needs of an international consumer base, it helps in promoting their growth prospects. It also helps in increasing employment opportunities for the people living in these countries.

(c) Means of improving living standards: International business facilitates the consumption of goods and services that are produced in other countries. This in turn helps the people living in the importing countries to enjoy a higher standard of living and facilitates the growth and development of the exporting countries.