1. Geographical Specialization : Countries across the world differ significantly in terms of natural resources, capital equipment, manpower, technology and land and so on.
2. Optimum use of Natural Resources : International business operates on a simple principle that a country which can produce more efficiently and trade the surplus production with other countries has to procure what it cannot produce more efficiently.
3. Economic Development : International business helps the developing countries greatly in achieving rapid economic development by importing machinery, equipment, technology, talent, and so on.
4. Generation of Employment : International business generates employment opportunities by assisting the expansion and growth of agricultural and industrial activities.
5. Higher Standard of Living : On account of international business, the citizens of the country can buy more varieties of goods and services which cannot be produced cost effectively within the home country.
6. Price Equilisation : International business helps to stabilize the prices of various commodities which are fluctuating on a daily basis in the world market.
7. 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.
8. Capacity Utilisation : International business enables the firms across the country to sell their goods and services on a large scale in the international market.
9. International Peace : International business makes countries across the world become interdependent while these countries are independent in their functioning.
