Advantages of International Operations

1. Gain new customers for their products
2. Can absorb excess capacity, reduce unit costs and spread risks over a wider number of markets
3. establish low cost production facilities in locations close to raw materials and cheap labour.
4. Less competition compare to domestic markets.
5. reduced tariffs, lower taxes and favorable political treatment.
6. Joint venture; learn new technology, culture and business practices, make contacts with potential customers, suppliers, creditors and distributors in foreign countries.
7. Large scale production, better efficiency and lower price offerings.
8. Enhance prestige translate into improves negotiating power among creditors, suppliers, distributors and important groups.