Let us make an in-depth study of International business:-

1. Advantages of International business 2. Disadvantages of International business.

Advantages of International Business:

The advantages of international business are as follows:

1. A Country can Consume those Goods which it cannot Produce:


Commodities produced in India can be found in England and vice-versa. This helps England to enjoy those goods which he cannot produce in his country.

2. The Productive Resources of the World are Utilised to the Best Advantage of the Country:

Every country expects highest return from its resources and this lead to fall in price and better goods for consumption.

3. Heavy Price Fluctuations are Controlled:


If the price of any commodity goes up, the goods can be imported from abroad and its price can be brought down.

4. Shortages in Times of Famine and Scarcity can be met from Imports from Other Countries:

Surplus produce can be sent out to needy countries. Food scarcity in India and Europe in often met by surplus food-grains from the U.S.A.

5. Countries Economically Backward but Rich in Resources may Develop their Industries:


Indian people are opening industries with the idea of sending produced goods to foreign countries.

6. International Business Promotes Peace and Friendship:

No country however big it may be can claim to be self-sufficient. It will have to depend on other country for something. Free international business is essential for goodwill, peace and to meet any requirements of the nation.

Dis-Advantages of International Business:

The dis-advantages of international business are as follows:

1. The Worst Part of Foreign or International Business is the Destruction of Cottage and Home Industries:

Indian industries need protection. If there will be no protection from the side of the government, Indian industries cannot prosper.

2. Dependence on Foreign Business Creates Difficulties in Times of Need:

In the past, India had to face great trouble and difficulty in getting ordinary and simple articles like medicine and tools during need or during the war.

3. The Extreme Specialization which makes a Country Depend on One or Two Industries is Bad:


Because if at any time the industry suffers the economic life of the people would be endangered.

4. Countries which Sell Raw Materials and Buy Manufactured Goods in Return are always Loser and cannot Improve the Country Economy:

The standard of living of the people cannot improve. International business under such conditions leads more to discontent and unrest than to peace and goodwill.

5. International Business may Completely Exhaust a Country’s Natural Resources like Coal and Oil which are Irreplaceable:


These goods are exported just for the sake of earning money and profit. But the country will have to suffer in the long run when their source will be dried up completely.

6. Imports of Harmful Drugs and Luxuries Goods ruin the Health of the Nation:

For this people blame international business which is not correct.

7. International Business Rivalry Leads to Friction and War:


Example of this kind it the last two world war. Commercial competition often brings strain relations between countries. Thus, it can be said that International Business is not unmixed blessing. But to measure advantages always outweigh the dis-advantages. At any rate, it is better if it is helpful in improving the economy of the country.