ABSTRACTThis may accrue by seeking foreign markets.

ABSTRACTThis paper explores the benefits that a businesses may accrue by seeking foreign markets. International business not only brings about advantages to the business alone but also the economy of its home country. Needless to say, it creates peace and harmony around the globe due to interdependence attained from foreign transactions. Most firms which penetrate global markets are able register higher levels of success as compared to their counterparts who remain transacting in their local market. Instead or remaining in one country firms should explore foreign markets in order to take advantage of opportunities not available in their domestic markets. INTRODUCTIONMost businesses today remain stagnant in terms of revenue and wonder why. However, the answer is simply failure to explore foreign markets. For a firm to prosper and remain in business for the long term it must try its level best to permeate foreign markets, to extend its life span. According to Peng (2013), international business can be defined as a business or firm that engages in international (cross-border) activities. Expanding a company internationally provides numerous opportunities which a beneficial to a company. The objective of international business can be looked at from two angles: the individual firm and the government.DISCUSSIONTo begin with, firms are able to generate higher amounts of sales. New markets go hand in hand with a bigger customer base. When a firm penetrates a new foreign market the number of consumers is larger, and hence purchasing power increases. This new demand creates more sales as compared to that of a single country. Most of the world’s largest companies according to Forbes(2017) derive over half of their sales from foreign markets such as Phillips and Sony, just to name a few. Other than that, once a firm goes global, it is able to enjoy greater economies of scale. In economics, economies of scale are the cost advantages that enterprises obtain due to size JSTOR (1977). The average cost of production is minimized when more units are produced. Therefore when a company grows in size by permeating a foreign market the production units increase and the firm  produces more commodities while incurring  lower costs.Additionally, going global helps to diversify risks. Risk diversification is simply spreading risk out by having numerous businesses in case one of them fails. This strategy helps to protect the firms’ financial position. Opening businesses in foreign markets allows a company to spread the risk of slowing demand in its home country. Thus if the domestic economy gets sluggish the firm is able to pick up the slack from the foreign markets.Accessing foreign markets also aids in extend the products life cycle. The product life cycle describes the stages through which a product goes from the time it was introduced till the time it is ultimately removed from the market. Going global assists in saving a company’s product before it goes into decline. This is due to the fact that foreign markets create new opportunities, especially if the product was low in supply or unavailable in the foreign market. In this manner the newly found market would help in sustain the life of the firm’s product.Business conducted at a global level prompts international investment. This owes to the fact that as a firm penetrates a foreign market the business is able to acquire more investors which in turn leads to a larger pool of capital. Financial backers such as investors help ease the many risks and challenges a business may encounter since they directly provide the financial aid required to help the business overcome financial obstacles.Aside from that, international business creates new market to get rid of surplus stock. As a result of increased efficiency in production firm are able to produce excess goods.This creates the need for new markets. Without international business, a company’s consumer base is limited to the population of the country in which it operates. International business offsets this challenge by expanding the market size. The firm finds and outlet for the surplus instead of letting it go waste.International business paves way for the exploration of foreign market opportunities. Accessing foreign markets enables a firm to take advantage of raw materials, natural resources and labour not available in their home country. The firm may also provide such resources to a foreign market that does not have them at all or the resources are short in supply.When there are many firms competing for the same buyers most fail or are pushed out of business. Diffusing foreign markets opposes this action by acquiring a new set of consumers. This works best when the firm’s products were previously unavailable in the foreign market. This enables the firm to stay in operation for a longer period of time.International business goes a long way in promoting global peace. Most countries from time immemorial have come closer on account of international business. Countries with strong international trade agreements seldom go to war with each other. This is  due to the fact that by simply transacting with another country allies are created who will definitely help in a time of need.An equally significant aspect of international business is that it is an engine for job creation. Additional foreign markets call for more goods  which means that a firm will have to produce more to cater for the increase in demand. Thus a larger labour force is required to satisfy the demand in the foreign country. An increase in the rate of employment positively influences the economy of any country.Similarly, international business creates a platform to earn valuable foreign exchange. Money earned can be used in the creation of new technology and development of infrastructure. Foreign exchange stimulates healthy economic growth and is very important  especially      for developing countries.FACTORS TO CONSIDER BEFORE GOING GLOBALNonetheless, a firm should carefully consider specific factors before jumping onto the international business wagon. A company must be wise in selecting the most appropriate market to penetrate and for the right reasons. The world is a highly diverse place business management should keep this in mind when venturing foreign markets.First off,. MAJOR BARRIERS TO INTERNATIONAL BUSINESS CONCLUSIONTo sum it all up, more effective and efficient businesses are actualized through international business. The perks of going international are numerous and would really go a long way in creating long term success. Apart from that it also impacts the global economy positively. To enjoy the diverse opportunities available all oveR the world more firms should seek foreign markets. REFERENCE LISTMike W. Peng,2013, Global Strategic Management, International Edition.The Quarterly Journal of Economics Vol 91,No 3,( Aug 1977) pp. 385-400