How does firms benefit from international trade

For example, when the U. You can also benefit from currency conversion. Let's say you do business in Japan and the Japanese yen is strong against the U. Your company's profits from Japan will be in yen. When you convert the payments in yen against a weak dollar, that means more dollars for your American head office—a welcome boost to your bottom line. This alone could be one of the most valuable advantages of international trade. Another one of the advantages of international trade is that you may be able to leverage export financing.

Small Business Administration may be places to explore for export financing options. One of the advantages of international trade is that you may have an outlet to dispose of surplus goods that you're unable to sell in your home market. Doing business in other countries can boost your company's reputation.

Successes in one country can influence success in other adjacent countries, which can raise your company's profile in your market niche. It can also help increase your company's credibility, both abroad and at home. This is one of the advantages of international trade that may be difficult to quantify and, therefore, easy to ignore. International markets can open up avenues for a new line of service or products. It can also give you an opportunity to specialize in a different area to serve that market.

Being exposed to the realities of the world outside your home base may even spark innovations, upgrades and efficiencies for your products and services. We never know what happens when we open our minds to ideas, feedback and experiences that come from outside the boundaries of our own country.

If you're not sure whether or not you're ready to partake in the advantages of international trade, you might want to check out the resources available for you at The International Trade Administration ITA.

In addition to export education material, the site gives an export readiness assessment. Read more articles on business expansion.

Skip to content. Business Cards. Payment Solutions. International Payments. Business Class. America has a long history of trade agreements with nations all over the world and continues to be a key component of global trade today. The U. Department of Commerce. Manufacturing has the greatest dependence on international trade , in which one in every four manufacturing jobs relies on exports. This has led to a doubling in output over the past 20 years, according to the U.

Furthermore, through the growth of automation and information technologies, the U. In addition, the entertainment industry represents another major exporter, with U. While the top destination for U. Other top destinations for U. The agricultural commodities traded have also shifted in recent years, due to the rise in populations and incomes around the world, as well as diets, becoming more diversified.

The demand for high-value agricultural products, such as meats, dairy products, poultry, live animals, fruits, vegetables, vegetable oils and beverages has increased over historically traded bulk commodities of wheat, rice, grains, cotton, oilseeds and tobacco.

While focusing on boosting U. Imports bring lower prices and a greater diversity of choices to American consumers, including products that would otherwise be unavailable, such as fruits and agricultural items. In addition to the availability of all types of agricultural products, the U. Many U. According to the U. Department of Commerce, these agreements account for nearly half of all American exports. In addition, the U. This is particularly relevant to medium-sized American companies, who represent one-third of U.