country. Thus international business prevents violent fluctuations of prices of various commodities and helps maintain prices of various commodities at stable level in each and every country. . Prospects for Higher Profit.
International business helps the firms which produce goods in excess to sell them at relatively higher price to various countries in the international market. This enables them to earn higher profit. . Capacity Utilisation.
International business enables the firms across the country to sell their goods and services on a large scale in the international market. As a result their machinery and equipments are used to their full capacity. In short very prospect of selling goods in international market besides selling the goods in home market keeps the machineries, tools, equipment, and factory fully engaged all through the year. .
International Peace. International business makes countries across the world become inter-dependent while these countries are independent in their functioning. This facilitates the exchange of culture, ideas and mutual understanding. It develops and strengthens cultural and social relations among the people of different countries.
All these collectively contribute to maintain international peace. Disadvantages .Economic Dependence. International trade is more likely to make the country too much dependent on imports from foreign countries. The former may not take any efforts to produce goods and services indigenously to substitute imported goods and thus becoming self sufficient.
As a result the importing country may become economically Commerce - - . . PM slave to exporting country and end up becoming colony of the exporting country. .
Inhibition of Growth of Home Industries. International business may discourage the growth of indigenous industry. Unrestricted imports and severe competition from foreign companies may ruin the home industries altogether. .
Import of Harmful Goods. International business may lead to import of luxurious goods, spurious goods, dangerous goods, etc. It may harm the well-being of people. .
Misuse of Natural Resources. Excessive export of scarce natural resources to various countries across the world may lead to faster depletion of the resources in the exporting countries. This in turn may bring about ecological disaster in the country