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    Trade and International Business Have Been The Core of Every Economy in The World

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    jeffersonosorio951

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    Trade and International Business Have Been The Core of Every Economy in The World

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    jeffersonosorio951
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    Trade and international business have been the core of every economy in the world

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    4 views1 page

    Trade and International Business Have Been The Core of Every Economy in The World

    Uploaded by

    jeffersonosorio951

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    Trade and international business have been the core of every economy in the world.

    There is no country which level of


    development been achieved without committing a large section of its economy in trade and international business

    International business Refers to business activities among various business entities world-wide that involved the trading of
    goods, services, technology, capital and/or knowledge across international boundaries and borders.

    At the current conditions, international business is primarily guided by the systems of globalization.

    International trade The trading of goods and services commonly known as exports and imports across international borders or
    territories because of differences in need and resources and the cost of production of a product or service

    IMPORTANCE OF INTERNATIONAL BUSINESS AND TRADE

    International Trade

    The importance of international trade for different countries is that it is an important factor in raising living standards, providing
    employment and enabling consumers to enjoy a greater variety of goods.

    International Business

    Takes the job of facilitating export and import; it arranged international loans for countries for growth and development and is
    an influential factor in growth and development.

    BENEFITS OF INTERNATIONAL BUSINESS AND TRADE

    Increased Revenues

    the firm‘s scope of market practically will increase when there is trade with other countries because a firm can sell its products
    world-wide.

    Enhances Competition

    since a firm now sells in other countries must expect that competition is intense and thus is forced to make its operation highly
    efficient and quality.

    Improvement in Product Quality

    since foreign markets are highly competitive firms need to improve quality and be efficient in order to survive and be profitable.

    Low Capital Cost

    capital cost in a highly liberalized market is cheap because of competition

    Better Risk Management

    risk arising from higher cost is minimized due to enormous number of suppliers selling similar materials or merchandize

    Benefiting from Currency Exchange

    when a country is observing free trade, its companies are basically into foreign enabling them to earn more dollars thus making
    the exchange rate of our Peso is more stable

    Access to export financing

    because of intense export activities in the economy, normally, because of the government desire to help export firms with their
    financing needs, the government in most cases open a highly subsidized loans to these firms

    Wider Market for Domestic Product

    a country which is in free trade can create a much bigger size of markets for its firms.

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