A few pros for international business are flexibility for products. This means that if products that you have don't sell enough or you don't make enough profit from the product, through the international trading system your products can actually be really useful to other countries where they don't have those goods/services. You also have less competition, most of the markets rise up because there isn't too much competition whereas in a local business markets there is lot's of competition. Throughout international business you can also gain knowledge and new skills about other markets and trading systems around the world. By gaining new knowledge about other business markets throughout the world, you can improve your own market and have it rise above other markets, making more profit and sales. If a country does not have a product that your country has, your market would automatically expand. For example some countries do not have lumber and that is one of Canada's major exports. Throughout international business you create many new jobs for locals and business owners. A few cons of international business is that your may be dependent on other countries for products. Over half of the world countries relies on food sources from each other, we get green beans from Kenya, Avocados from Mexico,etc. This requires money to be put into extra costs such as transportation via airplane, train, boat, etc. You can also have a loss of cultural identity, an example being McDonald's. It is an American fast food restaurant which is now placed all around the world in tons of countries. Some countries do not want their cultural identity lost and would not want to have McDonald's in their country. They would not want to adapt a new culture or modern living. Throughout the international market business you also have a higher risk of financial problems, meaning it takes up a lot of time to collect all of the payments for domestic sales and what not.
Tuesday, February 25, 2014
International Business- Pros/Cons
International business is the trade of good's and services between two or more countries and several regions.
A few pros for international business are flexibility for products. This means that if products that you have don't sell enough or you don't make enough profit from the product, through the international trading system your products can actually be really useful to other countries where they don't have those goods/services. You also have less competition, most of the markets rise up because there isn't too much competition whereas in a local business markets there is lot's of competition. Throughout international business you can also gain knowledge and new skills about other markets and trading systems around the world. By gaining new knowledge about other business markets throughout the world, you can improve your own market and have it rise above other markets, making more profit and sales. If a country does not have a product that your country has, your market would automatically expand. For example some countries do not have lumber and that is one of Canada's major exports. Throughout international business you create many new jobs for locals and business owners. A few cons of international business is that your may be dependent on other countries for products. Over half of the world countries relies on food sources from each other, we get green beans from Kenya, Avocados from Mexico,etc. This requires money to be put into extra costs such as transportation via airplane, train, boat, etc. You can also have a loss of cultural identity, an example being McDonald's. It is an American fast food restaurant which is now placed all around the world in tons of countries. Some countries do not want their cultural identity lost and would not want to have McDonald's in their country. They would not want to adapt a new culture or modern living. Throughout the international market business you also have a higher risk of financial problems, meaning it takes up a lot of time to collect all of the payments for domestic sales and what not.
A few pros for international business are flexibility for products. This means that if products that you have don't sell enough or you don't make enough profit from the product, through the international trading system your products can actually be really useful to other countries where they don't have those goods/services. You also have less competition, most of the markets rise up because there isn't too much competition whereas in a local business markets there is lot's of competition. Throughout international business you can also gain knowledge and new skills about other markets and trading systems around the world. By gaining new knowledge about other business markets throughout the world, you can improve your own market and have it rise above other markets, making more profit and sales. If a country does not have a product that your country has, your market would automatically expand. For example some countries do not have lumber and that is one of Canada's major exports. Throughout international business you create many new jobs for locals and business owners. A few cons of international business is that your may be dependent on other countries for products. Over half of the world countries relies on food sources from each other, we get green beans from Kenya, Avocados from Mexico,etc. This requires money to be put into extra costs such as transportation via airplane, train, boat, etc. You can also have a loss of cultural identity, an example being McDonald's. It is an American fast food restaurant which is now placed all around the world in tons of countries. Some countries do not want their cultural identity lost and would not want to have McDonald's in their country. They would not want to adapt a new culture or modern living. Throughout the international market business you also have a higher risk of financial problems, meaning it takes up a lot of time to collect all of the payments for domestic sales and what not.
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