International business and it's benefits 

What is international business?

Business activities done across national borders is International Business. The International business is the purchasing and selling of the goods, commodities and services outside its national borders. Such trade modes might be owned by the state or privately owned organization.

In which, the organization explores trade opportunities outside its domestic national borders to extend their own particular business activities, for example, manufacturing, mining, construction, agriculture, banking, insurance, health, education, transportation, communication and so on.

Nations that were away from each other, because of their geological separations and financial and social contrasts are now connecting with each other. World Trade Organization established by the administration of various nations is one of the major contributory factors to the expanded connections and the business relationship among the countries.

The national economies are dynamically getting borderless and fused into the world economy as it is clear that the world has today come to be known as a ‘global village’. Numerous more organization are making passage into a worldwide business which presents them with opportunities for development and tremendous benefits.

India was trading with different nations for quite a while, yet it has quickened its progress of incorporating with the world economy and expanding its foreign trade and investment.

Benefits of international business 

International Business is important to both Nation and Business organizations. It offers them various benefits.

Benefits to Nation

1. It encourages a nation to obtain foreign exchange that can be utilized to import merchandise from the global market.

2. It prompts specialization of a country in the production of merchandise which it creates in the best and affordable way.

3. Also, it helps a country in enhancing its development prospects and furthermore make opportunity for employment.

4. International business makes it comfortable for individuals to utilise commodities and services produced in other nations which help in improving their standard of life.

Benefits to Firms

1. It helps in improving profits of the organizations by selling products in the nations where costs are high.

2. It helps the organization in utilizing their surplus resources and increasing profitability of their activities.

3. Also, it helps firms in enhancing their development prospects.

4. International business also goes as one of the methods for accomplishing development in the firms confronting extreme market conditions in the local market.

5. And it enhances business vision as it makes firms more aggressive, and diversified.

Amazing facts about international business 

1. The WTO estimates a 7.2% improvement in international trade in 2021, after seeing a 9.2% decline in 2020. 

2. Globally, imports and exports shrank 14.3% from the first to the second quarter of 2020, the sharpest one-period contraction on record. Merchandise exports from North America contracted 21.8% during that time period. 

3. The United States was the second largest importer and exporter of goods related to combating COVID-19 behind China in the first half of 2020.

4. Worldwide, medical product exports grew 15.4% in the first half of 2020 and COVID-critical products grew 27.3%. Imports and exports of medical goods reached $1.14 trillion. 

4. In 2018 and 2019, the United States imposed tariffs on more than $300 billion in imports from China. In response, China imposed tariffs on $110 billion in American goods and shifted some business away from the United States. 

5. In January 2020, as part of a phase one trade deal, the United States cuts tariffs on certain Chinese imports. China pledged to boost American export purchases by $200 billion above 2017 levels, over a two year period, in return. 

6. Based on 2017 Census Bureau statistics, the target for U.S. exports to China in 2020 was $159.0 billion. The United States exported $93.7 billion to China in 2020, only reaching 59% of the target, despite China’s pledge to spend more. 

7. The United States trade deficit rose from $577 billion to $682 billion in 2020. Within that, U.S. trade in goods with the world reached $3.77 trillion in 2020, a 9% drop from 2019.

8. The United States exported $1.4 trillion worth of goods to the rest of the world in 2020. In 2019, the United States exported $1.7 trillion, and in 2018, the United States exported $1.6 trillion.

9. Canada was the United States’ top export destination in 2020, receiving $255 billion in exports, followed by Mexico and China.