The process of international business transactions is made up of all the profitable transactions between two or more countries. Governments are changes from international business are led by private companies for profit necessarily exclusively. In addition, it also comprises of a large part of the growing of the business environments in the world. In additional, the company works internationally in order to involve in other business model of local businesses in their country.
Besides, within a few decades, the international business grew very quickly, as in the growth of technology, liberalization of government policies on the cross - border movement of trade resources, official support and ...view middle of the document...
International Trade Advantages
International Trade as the international business had their own advantages. These advantages may take along in the proses trade between two nations. Those advantages are a country may import things which it cannot produce, maximum utilization of resources, benefit to consumer, reduces trade fluctuations, and utilization of surplus produce.
• Import things that cannot be produce
Firstly, International trade allows a country to consume things which either they not able to be produced within its borders or production may cost very high. Therefore, it becomes cost cheaper to import from other countries through foreign trade. This wills give advantages to the country to produce those products that they able to produce within their country natural resources and ability. Furthermore, the country can focus on their expertise in producing products in their country, rather than producing products that they did not able to produce.
• Maximum utilization of the natural resources
Secondly, International trade also helps a country to fully use its resources to the maximum limit. If a country does not take up imports and exports, then its resources remain unexplored. Thus it helps to eliminate the wastage of resources. The natural resources of a country are very valuable. The country must use their resources wisely and full limit, in order to prevent it too becomes wastage.
• Advantages to the consumer
Thirdly, Imports and export process of the different countries provide opportunities and benefits to the consumer to buy and consume those goods which cannot be produced in their own country. They therefore get diversity in choices. With this, customer can have a product that produce from other country. They will be very happy because had the opportunity to buy the product that their own country cannot afford to produce. This will lead to their purchasing power; because of they have many choices.
• Decreases trade fluctuations
By making the size of the market large with large supplies and extensive demand, international trade can reduce trade fluctuations. The prices of goods tend to remain more stable. This will be the good news to the exporter and importer because the trade fluctuation may be reduced, because they did not happy with the fluctuations. This happened because of the demand from the consumer for the export and import product.
• Application of Surplus produce
International trade enables the different countries to sell their surplus products to other countries and earn for the foreign exchange. This is very good towards the exporter and importer because by the international trade, the also can earn the foreign exchange, rather than only selling their product. The surplus product has high demand between the importers and the consumers. So, besides giving the benefits to the consumer, international trade also gives advantages to the importers and exporters.