The Business: Design & Innovation-International Trade, Globalisation & Sustainability

 The upcoming semester we will take a dive into the world of International Trade. Currently international expansion is a hot topic. Apart from the effects of the Covid-19 crisis, international trade volumes show a steep growth since the early 1990’s. Only very few countries, e.g. North Korea, aren’t connected to the international trade flows. There are several reasons why companies decide to expand their business beyond the borders of the domestic market. Large multinationals acting on the commodity market can only grow by entering new markets. Small companies on the other hand, like start-up companies, need to serve multiple markets in order to benefit from economies of scale in the manufacturing process of their products. Most companies are part of a Supply Chain and lots of companies sell their products all over the world. International trade is tempting because it can boost your sales. However, there are also risks involved. Before a company starts trading internationally, it is essential to have insights in the market potential and the risks of entering new markets.