In: Economics
Discuss the importance of international business to small companies.
Market expansion
Everyone wants to expand their market share and to sell more and more products. The importance of International business lies in the fact that you get a new market to enter and to expand in. No matter what was your position in the old market, the new market is a new playing field for any company. Internation business also create demand in the market in which local firms can also have benesits .
Increases competition for small companies
As internation business enters the market , it make small companies to have a competition with these international firms which lead to expansion of small companies and rethinking for there strategies to have a competetion with these international firms .
Diversification
Many businesses expand internationally to diversify their assets, an action that can protect a company’s bottom line against unforeseen events. For instance, companies with international operations can offset negative growth in one market by operating successfully in another. Small Companies also can utilize international markets to introduce unique products and services, which can help maintain a positive revenue stream.