Overall, there are many benefits to international business expansion and all the above points prove that if you have the capital and the potential to expand, then you should do so because there are many benefits associated with it. 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. Basically, the fixed cost goes down when the manufacturing goes up from the same assets. When South Africa belonged to the primitives and native tribes, there was no business being conducted. ADVERTISEMENTS: The following points highlight the three importance of International business. If your company is the one to reach there on time, it will automatically grow its market share – which is what all companies want. Even if the external business environment is not down, there are other worse things that can happen to the company which increases the importance of International business. International Business Importance # 1. An international business company has many advantages and benefits for the business owner. Due to Competition increasing and market becoming saturated. Naturally, when we are talking of operations and growth, one factor which helps the profitability of the company to a great extent is Economies of scale. So the question which pops up is – What is the importance of international business and what are the benefits of International business? Companies like Mitsubishi, Daikin, Blue Star and others have presence across multiple countries and regions. We have an excellent article on Economies of scale explained with examples. International business is important because it gives domestic companies access to new markets, potentially increasing sales and profitability. This helps the brand generate revenue and also push huge volumes out of their large factories. Functions Of International Business : Global competition has made the businesses to change their way of perspective. Due to the product of the company becoming obsolete in current market but being attractive in a new market (developed vs underdeveloped economy). With your business growing and you increasing your fixed costs, the concept of economies of scale sets in. Required fields are marked *, Copyright © 2020 Marketing91 All Rights Reserved, Importance of International Business – Benefits of International Business, 6 smart Sales techniques for retail sales person, Type of sales organization - Line Sales Organization, What are Sales Leads? This article explains how business degrees that focus on international clients will help become better employees or business owners. Expand your toolbox of skills. Hence, one reason International business is considered important is because of the safety it provides to the company lest an economic downturn happens. Operating internationally can also help a company lower expenses through direct access to cheaper materials and labor. Business activities done across national borders is International Business. Festival of Sacrifice: The Past and Present of the Islamic Holiday of Eid al-Adha. This benefits the company because the company gets a cost advantage over competitors. The world keeps getting smaller. The purchasing power in Dubai is great and you will find showrooms of all top brands present in Dubai markets. Why study International Business Administration? Process of Sales Conversion, Top 8 Barriers to International Trade and their Types, Reverse Auction: Meaning, Types, Steps, Benefits, and Disadvantages, 4 reasons that explain the Importance of Goals to any organization, What are Inventory Management Systems? Importance from Other Points of View. 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. 'In an ever-changing global business and economic environment, studying business from an international perspective is vital for graduates who are ambitious to work across international boundaries and cultures,' explains Dr Robert Webb, associate dean global engagement and recruitment and director of MSc programmes at Stirling Management School. Many times, there is a cost advantage of exporting products to a different country. Companies like Mitsubishi, Daikin, Blue Star and others have presence across multiple countries and regions.This is so that they can mitigate the …

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