Question

Discuss the importance of international business to small companies.

Answer 1

Small company is often struggle to get market share and bitter customer that will give better price. In the international market wide variety of customer that can have potential buyer of a product of a small company. If a small company is managed to provide a unique product to the international customer it is highly beneficial for a small company to go into export market and earn better profit. Rather doing up conventional business in the home country small company can learn through export and foreign c ustomer provide better feedback which can take chance of being big company by getting foreign finance. In case of there is low demand in the home country small business depend upon international business to expand its production and operation which will be better to survive in the economy. Small business often ignored in the domestic market due to low quality product therefore they can learn from foreign experience through entering into foreign business. International business provide better opportunity for restructure the company e enhance technological capacity updated production quality and so on.