What are the four advantage of sale trading business?
Answers
Answered by
4
the Advantages of International Trade
1. It provides a foundation for international growth.
Companies that are involved in exporting can achieve levels of growth that may not be possible if they only focus on their domestic markets. This allows brands and businesses an opportunity to achieve sustained revenues from a diversified portfolio of customers in several markets instead of a limited customer base in a single home market.
2. International trade improves financial performance.
Brands and businesses which assert themselves in foreign trade work can increase their financial performance. This allows them to augment the returns they achieve on their investments into research and development. By rotating the products or services through the global market, the commercial lifespan of each opportunity can be amplified, expanding what existing products and services can provide. This benefit can even be achieved if a domestic market is no longer interested.
3. It spreads out the risk a brand and business must assume.
Organizations can better protect themselves from risk thanks to international trade because of the amount of diversification that can be achieved. Whether it is a financial disaster, like the Great Recession of 2007-2009, or a natural disaster like Hurricane Katrina, a company with an international presence can survive and even maintain profitability without domestic customer support. A home market may be unstable, but international trade can still let the brand and business be stable.
4. International trade encourages market competitiveness.
When a brand and business competes in several markets simultaneously, then it must focus on its competitiveness for it to be able to thrive. By observing a larger range of trends because of their greater level of global market access, brands and businesses can focus on quality, design, and product development improvements so that they can continuously improve and diversify.
5. International exchange rates can be beneficial to a business.
Brands and businesses involved with international trade can further reduce their risk by taking advantage of monetary exchange rates. If a company does most of its trading in US dollars, then trading with Japan to spread the risk of the exchange rate between the yen and the dollar can potentially add to the profits of the company. The same could be said of the euro or the pound to the dollar.
6. Revenue streams have some protection.
Although all risk cannot be eliminated from international trade, a series of contracts, insurance, and financial instrument trading can help to protect the revenue streams a brand and business is able to develop.
7. It can be used as a way to get around high levels of domestic competition.
A domestic market can have several products or services that are like what a new brand and business is trying to offer. Instead of competing for a small sliver of that domestic market, going through international trade can help an organization target similar foreign markets where competition may be much lower. Over time, the experiences gained in the foreign market can help an organization be able to establish a stronger domestic presence as well.
1. It provides a foundation for international growth.
Companies that are involved in exporting can achieve levels of growth that may not be possible if they only focus on their domestic markets. This allows brands and businesses an opportunity to achieve sustained revenues from a diversified portfolio of customers in several markets instead of a limited customer base in a single home market.
2. International trade improves financial performance.
Brands and businesses which assert themselves in foreign trade work can increase their financial performance. This allows them to augment the returns they achieve on their investments into research and development. By rotating the products or services through the global market, the commercial lifespan of each opportunity can be amplified, expanding what existing products and services can provide. This benefit can even be achieved if a domestic market is no longer interested.
3. It spreads out the risk a brand and business must assume.
Organizations can better protect themselves from risk thanks to international trade because of the amount of diversification that can be achieved. Whether it is a financial disaster, like the Great Recession of 2007-2009, or a natural disaster like Hurricane Katrina, a company with an international presence can survive and even maintain profitability without domestic customer support. A home market may be unstable, but international trade can still let the brand and business be stable.
4. International trade encourages market competitiveness.
When a brand and business competes in several markets simultaneously, then it must focus on its competitiveness for it to be able to thrive. By observing a larger range of trends because of their greater level of global market access, brands and businesses can focus on quality, design, and product development improvements so that they can continuously improve and diversify.
5. International exchange rates can be beneficial to a business.
Brands and businesses involved with international trade can further reduce their risk by taking advantage of monetary exchange rates. If a company does most of its trading in US dollars, then trading with Japan to spread the risk of the exchange rate between the yen and the dollar can potentially add to the profits of the company. The same could be said of the euro or the pound to the dollar.
6. Revenue streams have some protection.
Although all risk cannot be eliminated from international trade, a series of contracts, insurance, and financial instrument trading can help to protect the revenue streams a brand and business is able to develop.
7. It can be used as a way to get around high levels of domestic competition.
A domestic market can have several products or services that are like what a new brand and business is trying to offer. Instead of competing for a small sliver of that domestic market, going through international trade can help an organization target similar foreign markets where competition may be much lower. Over time, the experiences gained in the foreign market can help an organization be able to establish a stronger domestic presence as well.
Similar questions