Advantages of international business
1. Obtaining Valuable Forex: A country can earn valuable Forex by exporting its goods to other countries.
2. Division of labor: International business leads to the specialization of product production. Therefore, high-quality products that you have the greatest advantage.
3. Optimal use of available resources: International businesses reduce the waste of domestic resources. It helps countries make the best use of their natural resources. Each country produces those products that have the greatest advantage.
4. Improving the standard of living of people: The sale of surplus products from one country to another leads to increased income and savings for people in the first country. This will improve the standard of living of the population of the exporting country.
5. Consumer Benefits: Consumers also benefit from international business. They are free to use a variety of better quality products at a reasonable price. Therefore, consumers in the importing country have a variety of products, which is an advantage.
6. Promotion of industrialization: The exchange of technical knowledge allows developing and developing countries to establish new industries with the help of foreign aid. Therefore, the international business helps the industry develop.
7. International Peace and Harmony: International business eliminates competition between different countries and promotes international peace and harmony. Build interdependence and increase mutual trust and integrity.
8. Cultural Development: International business encourages the exchange of cultures and ideas between more diverse countries. You can adopt a better way of life, clothing, food, and more from another country.
9. Economics of large-scale production: International business leads to large-scale production due to high demand. Every country in the world can benefit from large-scale production.
10. Product price stability: International business reduces large fluctuations in product prices. It leads to stable product prices around the world.
11. Expanding the product market: International business expands the product market around the world. As the scale of the business expands, the profits of the business will increase.
12. Benefits in an emergency: International business allows you to face emergencies. In the event of a natural disaster, we can import goods according to your needs.
13. Creating Employment Opportunities: International companies promote employment opportunities in export-oriented markets. It raises the standard of living of countries dealing with international business.
14. Increasing public income: The government imposes import and export taxes on this transaction. Therefore, the government can make a lot of money from international business.
The disadvantages of international business are as follows.
1. Negative economic impact: One country affects the economy of another through international business. In addition, large-scale exports hinder the industrial development of importing countries. As a result, the economies of importing countries are suffering.
2. Competition with developed countries: Developing countries cannot compete with developed countries. Unless an international business is managed, it impedes the growth and development of developing countries.
3. Competition between nations: Fierce competition and the desire to export more products can create competition between nations. As a result, international peace can be hampered.
4. Colonization: Due to economic and political dependence and industrial recession, importing countries may be colonized.
5. Exploitation: International business leads to exploitation from developing countries to developed countries. Prosperous and dominant nations regulate the economies of poor nations.
6. Legal Issues: The different laws, regulations, and customs procedures that different countries follow to have a direct impact on import and export trade.
7. Unwanted fashion promotion: Cultural values and heritage are not the same in all countries. There are many aspects that may not be suitable for our environment, culture, traditions, etc. This obscenity is often created in the name of cultural exchange.
8. Language Issues: Different languages in different countries create barriers to establishing business relationships between different countries.
9. Dumping policy: Developed countries tend to sell their products to developing countries at prices below production costs. As a result, industries in developing countries have been closed.
10. Complex technical steps: International business is very technical and has complicated procedures. It contains various uses for important documents. Expert service is required to handle complex procedures at various stages.
11. Shortage of commodities in exporting countries: Traders may prefer to sell commodities to other countries instead of their own in order to make more profits. As a result, there is a shortage of products in the country of origin.
12. Negative impact on the domestic industry: International business represents a threat to the survival of early and early industries. Foreign competition and unlimited imports can disrupt our country’s future industry.
These are some of the benefits as well as shortcomings of international business.