What are the benefits of foreign trade
Answers
Answer:
Benefits of foreign trade are:
(i) With the opening of trade, goods travel from one market to another.
(ii) Choice of goods in markets rises.
(iii) Prices of similar goods in two markets tend to become equal.
(iv) Producers in the two countries now closely compete against each other even though they are separated by thousands of miles.
Answer:
Benefits ofB doing foreign trade
Explanation:
1. Increased profits
One of the most significant benefits of international trade is the possibility to expand your client base. Each country you add to your list can provide a new avenue for revenue development and expansion.
2. Reduction in competition
In the United States, your product and services may face stiff rivalry, but in other nations, you may face less competition.
3. Increased product longevity
Certain products' sales might fall in the United States as people quit buying them or upgrade to better versions.
4. More straightforward cash flow management
One of the unspoken benefits of overseas trading may be getting paid in advance.
When dealing internationally, it may be standard practise to request payment in advance, whereas managing cash flow while waiting to get paid at home may require more creativity. Expanding your firm internationally could help you better manage your cash flow.
5. More effective risk management
Market diversity is one of the major benefits of international trade. Concentrating solely on the home market may put you at greater risk from economic downturns, political events, environmental calamities, and other risk factors. You may be able to offset potential hazards in your primary market by being less reliant on a single market.