State the reasons to have international business?
State the reasons to have international business?
• Countries cannot produce all the products equally well or cheaply . This is because of the unequal distribution of natural resources among them or differences in their productivity levels.
• Labour productivity and production costs differ among nations due to various socio-economic, geographical and political reasons.
• Principle of territorial division of labour is applicable at the international level too. Most developing countries which are labour abundant, for instance, specialise in producing and exporting garments.
• Firms to engage in international business to import what is available at lower prices in other countries, and export goods to other countries where they can fetch better prices for their products.
• Countries cannot produce all the products equally well or cheaply . This is because of the unequal distribution of natural resources among them or differences in their productivity levels.
• Labour productivity and production costs differ among nations due to various socio-economic, geographical and political reasons.
• Principle of territorial division of labour is applicable at the international level too. Most developing countries which are labour abundant, for instance, specialise in producing and exporting garments.
• Firms to engage in international business to import what is available at lower prices in other countries, and export goods to other countries where they can fetch better prices for their products.
