Following are the benefits the firms derive by entering into

international business-
 Generating higher profits- International business opens a bigger
market for the product. If the product’s domestic prices are
low, the firm can make more profits by targeting foreign
countries where the price might be high. Increase in consumers
will lead to increase in gains.
 Decreased competition- The product or service offered by the
company may face competition in their native country but they
might have less competition. Competition can be a really big
factor in product not gaining consumers.
 Growth of company- Saturation of product in domestic market
could be a really difficult situation for business firms. They
could grow by entering into a new market. Most multinational
companies follow this today. First, they establish themselves in
a developed country then enter the market of a developing
country.
 Increases product lifespan/Risk Management- Focusing only on
the domestic market may increase the risk from the downturns
in the economy, political factors and other risk factors. Because
the value of currency varies it could affect the other operations
of the company.
 Disposal of surplus goods- In case there is a surplus of product
in domestic market the firm can dispose the goods in
international market. Surplus can cause a lot of trouble for
company selling products with expiration duration. Increase in
production on a large scale leads to economy of scale, which
reduces production cost and improves profit margin.
 Less cost of human resource- Companies can establish their
manufacturing unit in the market where human resource is
cheap and therefore it is a step forward.
 Enhanced reputation- International trade can influence success
in adjacent countries, which will raise profits in your market. It
also increase the company’s credibility, both abroad and at
home.
 Greater access to talent- Another advantages of taking business
international is to get access to potential employees with
unique skills and mindsets. They may find hard to find such
potential hires, this can give edge over the rest of the
competition.
 Availability of raw material- Enter a new market could provide
them easy access to cheap raw material thereby, further
reducing production cost. This will also reduce the cost of
transportation as the product can be sold in the same country.
 Exposure to foreign investment opportunities- When a
company goes global they get to learn about more business
investments which can be extremely valuable for firm. Investing
in such startups could diversify the portfolio of the firm.