Why companies engage in international business?

Companies engage in international trade to:

1. Reach new markets and increase sales.
2. Increase profit and revenue in order to be a stronger competitor in the domestic market.
3. Increase diversification to offset the seasonality of certain products (eg. no one buys umbrellas in California during the Summer).
4. Increase diversification to offset economic slumps or recessions.
5. Put excess capacity (factories that are not being used) to use.