Discuss any three advantages of international business.
International business offers several advantages to both nations and business firms:
Earning of foreign exchange is a major advantage for countries. International business helps a country earn foreign exchange which can be used for meeting imports of capital goods, technology, petroleum products, fertilisers, pharmaceutical products and other consumer goods that may not be available domestically.
Prospects for higher profits benefit business firms significantly. When domestic prices are lower, firms can earn more profits by selling their products in countries where prices are high. This makes international business more profitable than domestic business in many cases.
Increased standard of living is another key advantage. Through international trade, people are able to consume goods and services produced in other countries, which otherwise would not have been possible, thereby enabling them to enjoy a higher standard of living.
Explanation
The answer covers three distinct advantages from the textbook context: (1) Earning foreign exchange for nations, (2) Higher profit prospects for firms, and (3) Increased standard of living for people. Each point is supported with relevant details from the context. The answer follows the word limit and formatting requirements for a 3-mark short answer question.