What are the Advantages of International Marketing?

Advantages of International Marketing:

(1)  Better standard of living:International marketing provides a better standard of living to people in different countries and raises their welfare. It provides goods which cannot be produced in their country. It helps in large scale production and generates employment opportunities in different countries. It brings income to the people and thereby provides a higher standard of living.

(2)  Quick industrial development:International marketing helps in quick industrial development of developed and developing countries. The developed countries give aid, capital goods and technology to the developing countries. The developing countries supply raw materials and labour to the developed countries. Industrial development gives huge job opportunities to the people.

(3)  Raises the real income and national well-being: In international marketing, every country specializes in the production of that commodity to which it is best suited to produce, export its surplus produce and import those commodities which it can get cheaper from other countries. Thus, the real income and national well being of all the participating countries increases.

(4)  Lower Prices:International marketing decreases the price of goods and services, all over the world, due to specialization. The comparative cost advantage which a country has in a particular product can be shared by the other participating countries.

(5)  Technological development: International marketing through specialization, decreases the prices of goods and services, increases their demand, thereby consumption, which helps in further specialization and technological developments.

(6)  No Monopolistic exploitation: due to international marketing, there is any monopolistic exploitation of consumers by the home producers. Due to the presence of many sellers in international markets, it is difficult to exploit one country by another country.

(7)  Availability of foreign exchange: A country earns foreign exchange due to exports and uses it for paying essential imports. International marketing helps in easy availability of foreign exchange for import of capital goods, modern technology and other essential requirements.

(8)  International co-operation and world peace: Due to traderelations, international marketing brings countries closer, which leads to co-operation among the countries. Developed countries help the developing countries in their developmental activities. Cordial relations are maintained by countries due to interdependence of countries and this brings peace in the world. It bridges the technological gap between countries.

(9)  Build cultural relations:International marketing alters the quality of life of people. It exchanges goods and services among countries and develops closer social and cultural relations between various countries.

(10)  Expansion of tertiary sector:International marketing increases exports, thereby industrial development. Expansion is there in the tertiary sector i.e. transport, insurance,    banking and shipping activities.

(11)  Special benefits during emergency: When natural calamities like floods, earthquakes occur, international marketing gives special benefits. To meet urgent needs, emergency supply of goods is required. This is possible because of large scale imports. Countries give co-operative to countries facing difficulties, by supplying essential goods and services.

(12)    Research and Development: International marketing is very competitive. In order to survive severe international competition, every firm operating at the international level has to undertake continuous research and development. This leads to technology development in developing and backward countries.

(13)    Removal of deficit: International marketing helps in the removal of deficit in the balance of trade and payments of participating countries through exports promotion and import substitution.