— Insufficiency of\nDomestic Demand – It is not possible for each product available in the market\nto have an equal and growing demand in the domestic market. Some products are\nnot in demand in the domestic market but have higher demand in the\ninternational market. The firm needs to identify the same and take a decision\nto enter into foreign markets.<\/p>\n\n\n\n
— To Utilize\nCapacity – When the production of a certain product is much higher than the\ndemand in the domestic market, the decision can be made to enter the\ninternational market to utilize the capacity of the production.<\/p>\n\n\n\n
— Legal\nRestrictions – Legal Restrictions are often seen when the international market\nis involved. But some of the Restrictions are also seen in the domestic market\nabout the production and distribution of certain commodities, resulting in\nfinding the ways to distribute the product in the places where they are not\nrestricted.<\/p>\n\n\n\n
— Relative\nProfitability – When a product is exported to the market where it is a\nnecessity, the profit percentage increases in relatively higher rates as\ncompared to the domestic market.<\/p>\n\n\n\n
— Less Business\nRisk – The business can grow in the international market as there is less\nprobability of having the competition in the same market in the international\nplatform. It is not a guarantee that the business will be at its peak at the\nfirst time it enters into the international market, but it will not be at the\nlosses either.<\/p>\n\n\n\n
— Increase\nProductivity – When a business enters into the international market, it is an\nunderstatement that the production will be increased due to many factors\nincluding demand completion and new technological changes to increase production\nat cheaper rates.<\/p>\n\n\n\n
— Social\nResponsibility – Sometimes it becomes a social responsibility to export a\ncertain commodity to the place where that product is not available but the need\nis higher.<\/p>\n\n\n\n
— Technological\nImprovement – When a business enters the international market, it is introduced\nwith new technologies and products which can be adapted by the firm to improve\nit’s production and also to give stiff competition to the successfully\noperating firms in the international markets.<\/p>\n\n\n\n
— Product\nObsolescence – The demand for the product differs in different markets at\ndifferent points of time. When the product becomes obsolete in the domestic\nmarket, it may be in demand in the international market. This can be found out\nby surveys to be conducted by the firm itself.<\/p>\n\n\n\n
Importance from others point of views<\/p>\n\n\n\n
— International\nCollaboration – Many countries collaborate with other countries to exchange\ntheir products and services so that it is beneficial for both the countries.\nInternational collaborations ensure the export of products and services\navailable in large amount in the domestic market in exchange of import of the\nproducts and services which are not available in the domestic market but have\nhigh demands.<\/p>\n\n\n\n
\u00a0\u00a0 — International Business brings various countries closure – When international business occurs, the countries are involved in the same. It ensures good relations between the countries. The interaction between the representatives, in government as well as at local levels, ensures that the cultures and important factors to be kept in mind are discussed. Also, it will help to find the habits and necessities of other countries required while doing the business with them.<\/p>\n\n\n\n
Nikita Singhal BBA 6th semester morning shift Division A TIAS New Delhi.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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