course hero: potential benefits from international trade can include what

What are the advantages of international trade?

Jul 06, 2016 · Potential benefits from international trade can include which of the following? (Choose 2) Legal Time Communication Diversification Growth Competition When involved with international trade, a corporation must deal with a range of potential problems, including different __________. products services interest rates legal systems customs

What are the advantages of international trade for MNCs?

Jun 06, 2014 · dramatically - by using an international strategy to establish stronger positions in markets outside their domestic market. Larger international markets offer higher potential returns and thus pose less risk for the firm choosing to invest in those markets. Economies of Scale and Learning Firms able to standardize the processes used to produce, sell, distribute, and service …

How can India benefit from external trade with Japan?

Mar 04, 2022 · International trade can benefit a country by increasing its wealth and creating jobs. Q2 Increased economic growth Increased employment Increased competition Increased variety of goods and services Increased innovation Increased economic efficiency Reduced prices Q3.

What are the advantages and disadvantages of international business?

The additional economic benefits that are projected because of a trade secret, for example, cost reduction and greater sales, fall under the category of investment returns. Such benefits should contribute to a return of capital and return on capital that helps in compensation for the risk as well as the time value of money 16 . II.

What are the advantages of international trade?

One of the advantages of international trade is that it provides an outlet to dispose of surplus goods that are unable to sell in the domestic market. Air France now mostly depends on the demand for air travel of the customers from countries other than France.

How does international trade help countries?

International trade promotes efficiency in production as countries will try to adopt better methods of production such as better technical know-how, use of efficient modern machinery. To able to gain a larger share in the market, the production cost should be low and quality should be high.

Why is external trade important?

It also helps in environmental protection. It also provides countries with a better marketing advantage. External trade resources are used efficiently and all the countries get benefitted of specialization. For example, Japan may produce electronic goods more efficiently than India and India may produce agricultural goods more efficiently ...

What is international business?

International business helps a country to earn foreign exchange which can be used to import capital goods, technology, petroleum products, fertilizers, etc. India is a major exporter of IT services all over the world. The foreign exchange obtained is used for importing capital goods, technology, petroleum products, fertilizers, etc.

How does external trade affect employment?

External trade results in an increase in production and due to increased production the demand for labour increases which creates employment opportunities. International business helps in generating more employment through the establishment of newer industries to cater to the demands of various countries. Similarly, export-oriented industries provide employment opportunities such as forwarding agents, clearing agents, etc. This helps countries to bring down their unemployment rates.

Why is international business important?

Increased revenues. One of the top advantages of international business is that it increases the number of potential clients. Each country added to the client opens up a new pathway to business growth and increased revenues. Generally international business is more profitable than domestic business.

What are the benefits of external trade?

Companies involved in external trade increase their production capacity. With an increase in production capacity, these firms can get benefits of large production or economies of scale and reduce the cost of production.