BENEFITS TO NATIONS(1) Earning of foreign exchange: International business helps a country to earn foreign exchange which it can later use for meeting its imports of capital goods, technology, petroleum products and fertilisers and a host of other consumer products which otherwise might not be available domestically.(2) Improving growth prospects and employment potentials: Producing ssoely for the purpose of domestic consumption severely restricts a country's prospects for growth and employment. Many countries, especially the developing ones, could not execute their plans to produce on a larger scale, and thus create employment for people because their domestic market was not large enough to absorb all that extra production. This helped them not only in improving their growth prospects, but also created opportunities for employment of people living in these countries.BENEFITS TO FIRMS(1) Increased capacity utilisation: Many firms setup production capacities for their products which are in excess of demand in the domestic market. By planning overseas expansion and procuring orders from foreign customers, they can think of making use of their surplus production capacities and also improving the profitability of their operations.(2) Improved business vision: The growth of international business of many countries is essentially a part of their business policies or strategic management. The vision to become international comes from the urge to grow, the need to become more competitive, the need to diversify and to gain strategic advantages of internationalism.