World Market Place is full of […] The importance are: 1. country) of the world. 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. 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. Get … With your business growing and you increasing your fixed costs, the concept of economies of scale sets in. Such trade modes might be … After reading your post I got lots of information about international business companies which I have no idea before. Many times, there is a cost advantage of exporting products to a different country. Importance, Types & Uses, What is a Sales Contract? Is the Coronavirus Crisis Increasing America's Drug Overdoses? However, with globalization, we can see the growth and development of Ghana and Nigeria as well as other African cities. With Internet globalization of the world marketplace, companies are competing with businesses from around the world whether they want to or not. Also, a measure of the strength of the US economy is based on the quantity of business exports and imports to and from the international marketplace, making international business extremely important to the quality of life in this country according to the U.S. Department of State. International business as a subject has become a complete discipline in itself. 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. 1. Institute of Business Administration, University of Dhaka. 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. This helps the brand generate revenue and also push huge volumes out of their large factories. Basically, the fixed cost goes down when the manufacturing goes up from the same assets. The purchasing power in Dubai is great and you will find showrooms of all top brands present in Dubai markets. Your email address will not be published. This article explains how business degrees that focus on international clients will help become better employees or business owners. One reason for large companies to look towards international business is to utilize the excess production capacity of their manufacturing plants. Really nice thanks , cause it’s my department and it’s really useful information. This is so that they can mitigate the effects of a slow economy in their home country. You will study global challenges companies face, looking at international boundaries, trade, global economics and how to negotiate with diverse cultures. All of these companies were founded in America, but have since expanded to other areas of the world. A company could be losing its domestic market share and it could find solace in a new international market. The importance of International business lies in the fact that you get a new market to enter and to expand in. The process and degree of globalisation have made it essential for one and all to study international business. '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. An international business company has many advantages and benefits for the business owner. You can follow me on Facebook. When a business is reliant on just the home market, it is really wide open to failure should this market decline. 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. Everyone wants to expand their market share and to sell more and more products. If your company is the one to reach there on time, it will automatically grow its market share – which is what all companies want. One of my friends had taken an asset protection service from “Abaco Ltd” but I got to know some new points from your article and how it works. We have an excellent article on Economies of scale explained with examples. The benefits of International business are huge to Chinese companies because their cost of production is very low. Why Is International Business Important? No matter what was your position in the old market, the new market is a new playing field for any company. These are the important facts every business owner should know. Introduction to International Business. Importance and Types, What is Sales Compensation? The growth of these cities and the flourishing commerce is another proof of the importance of International business. When you have such production potential, utilizing that potential is important. It also improves its own scale of operations. Know Why International Business Is Important. This benefits the company because the company gets a cost advantage over competitors. With local markets being saturated, many companies think of expansion via international business. Some examples of well-known global businesses include Google, Apple, and eBay. Global business is a term used to describe both international trade and the act of a company doing business in more than one area (i.e. Expand your toolbox of skills. National Economy: 1. Times have changed, but the primary role of business has remained the same: to provide people with … 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? International business has many advantages and benefits for a Production or manufacturing company. Business activities done across national borders is International Business. The world keeps getting smaller. Elements, Importance and Advantages, What is Sales cadence? globalEDGE is a gateway to specialized international business research knowledge on countries, cross-border business transactions, and cross-cultural management. International business is important as it gives businesses greater scope to sell the goods or services they produce. Operating internationally can also help a company lower expenses through direct access to cheaper materials and labor. As demand rises in new markets, the growth in demand automatically attracts new companies. Operating internationally can also help a company lower expenses through direct access to cheaper materials and labor.

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