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3 Reasons Students in Business College Should Understand Integrative Trade

business administration course

Our world today is far more connected than it has been in the past, and this means that new and emerging markets and changing trade patterns are significantly reshaping the global economy. Many companies have begun to invest in and collaborate with overseas businesses, using a process known as integrative trade.

Integrative trade involves the exporting and importing, foreign investment, and sale of services on a global scale, with different stages of production occurring in different locations around the world. Businesses who adopt integrative trade methods can use it to stay competitive, relevant, and successful on the international level.
If you’re interested in getting involved in business and want to know how integrative trade plays a role in today’s global marketplace and your future career, read on to find out more.

Integrative Trade Means Businesses Will Encounter Different Cultural Environments

While it may seem obvious that the rise of a globalized marketplace involves doing more business with international companies, it’s important to remember that these companies come with their own unique cultural differences, work environments, and business philosophies that may be very different from the ones you’re used to.

Chinese business culture, for instance, emphasizes the hierarchy of business management, and discourages lower-level employees from going against their boss’s opinions or decisions. This means that a more opinionated, outspoken Western style wouldn’t work well in that specific environment. A business administration course can teach you the finer points of how cultural differences can affect your integrative trade initiatives, passing on the valuable negotiating skills you can use to navigate international business culture.

diploma in business administrationIntegrative trade can help connect businesses across different cultures

You Can Use Integrative Trade to Develop a Successful Financial Strategy

A financial strategy concerns the specific way you want your business to interact in your particular market, and if you want to operate on an international scale, your integrative trade initiatives determine what goals you set and how you choose to meet them using your financial strategy.

Conducting business on an international level means you must first develop the different parts of your strategy, including a successful international marketing plan, sales strategy, and even transportation logistics. Considering all of these aspects helps you better prepare for the demands of competing in a global marketplace. For example, if your goal is to sell a thousand bananas in France and your business is based in Los Angeles, your financial strategy should incorporate integrative trade to help you find affordable suppliers of your product, research French markets to plan and implement a successful sales strategy and identify the best way to transport your product to your French consumers.

Integrative Trade Helps Students in Business College Get the Competitive Advantage

As students in business college know, companies in today’s marketplace must be constantly innovating and adapting in order to meet the needs and buying preferences of their consumers. The growing incorporation of integrative trade is often also a double-edged sword, because it means you have more opportunities to grow your business, but also more competition for resources and consumers. In order to stay relevant within their market and attract the buying power of consumers away from competitors, your business must have what’s known as the competitive advantage.

business collegeStudents at Oxford College can use their training to succeed in today’s global markets

The competitive advantage involves the conditions that help a company produce a good or service at a lower price. Having this advantage means your business can use the savings they make during production to help generate more product, increasing its market performance.

Integrative trade can give businesses the competitive advantage because it helps them stay ahead of their domestic competitors who may not want to expand into the international market. This means that if you use integrative trade, you can potentially have more access to more consumers, which gives you the ability to expand your business and stay relevant within your market.

Are you interested in taking the next steps towards a rewarding career?

Contact Oxford College for more information about earning your diploma in business administration.

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