How a business may use the trade theories to develop its business strategies

In order for the countries and firms/businesses to have a sustainable competitive advantage, the first thing to consider is the importance of knowing the factor conditions or the local market resources capabilities of the industry to be able to import and export. They must have enough resources and allot factors of productions like skilled labor, investments in education, technology, and infrastructure for more efficiency. On the other hand, having advanced and or highly developed home market demand conditions contributes to the competitiveness of the country and or businesssses. Additionally, the industry must establish great influence as well as trends, and of course, innovation and the development of new products and technologies must be continued. Moreover, to sustain and provide inputs of the industry, building relations as well as strong, efficient support with local suppliers and complementary industries can be greatly beneficial as what it is said: “No man is an Island”. You cannot restrict your business from being stand-alone and do not care for other firms. In the future, there are high possibilities that these connections with other industries can help the business from achieving its goals and market growth. Furthermore, competition motivates companies to increase sales volume by utilizing their resources and increases efficiency. Also, businesses must know who they are dealing with or the local firm characteristics because healthy competition or rivalry between local firms will spur innovation and thus competitiveness. Therefore, businesses may use these trade theories and apply them in order to develop their business strategies and find the right way to remain competitive in the market.