In today’s global world, there is a strong need for business professionals who understand how the world works together.
Whether it’s managing the flow of goods between countries or helping a company grow in a new part of the world, international trade and international business are both important fields.
While they are closely related, they are not the same. Each offers unique opportunities and career paths.
In this article, we’ll explain the key differences between international trade and international business to help you choose the right degree for your future.
What Is International Business?
Studying International Business helps you build the skills needed to manage business across countries. It focuses on activities that happen outside a single country’s borders.
For example, if a media agency from Singapore opens an office in Shanghai, China, and starts running ads there, that’s international business. To succeed, they need to understand how business works in different cultures and environments.
Working in international business means you need the right skills and knowledge to succeed in a global and competitive world. You’ll learn how to use tools in marketing, finance, accounting, and management to understand how business works across countries.
Career Opportunities in International Business
As a graduate in international business, you’ll be equipped with the business-savvy skills to find employment across a spectrum of industries, especially in multinational companies that transcend borders.
Graduates will be able to find relevant careers in financial services, retail management, manufacturing, management consultancy, and technology.
These positions include:
- Business management analyst
- Research analyst
- Marketing analyst
- Financial trader
- Supply chain manager
What Is International Trade?
Career Opportunities in International Trade
Graduates of the International Trade programme are equipped to critically engage with the complexities of globalisation and its impact on societies, economies, and the environment. This interdisciplinary foundation opens up career paths in international policy and development agencies, trade and regulatory affairs, global non-governmental organisations (NGOS), and sustainability consulting.
Roles may include the following:
- Policy analyst
- Trade compliance officer
- Research associate
- Positions in consulting firms
- Positions in international development
All of these jobs require a deep understanding of global systems and responsible decision-making in an interconnected world.
Differences Between International Trade and International Business
Although both international trade and business seem exciting, they are quite distinct. Choosing one over the other could set you on completely different career paths.
International Business
International business is a more all-encompassing concept. It encompasses all monetary transactions that cross borders. Since it extends beyond mere importing and exporting activities, there’s a wide range of knowledge to master. The goal of international business is to manage and operate a company and its operations effectively in overseas markets. This involves acquiring resources, minimising risks, and expanding the business.
To achieve this, you’ll study core subjects such as consumer behaviour, international economics, financial decision-making, strategic management, and organisational behaviour. These studies will equip you with the essential skills to assist, manage, and grow a business across borders.
International Trade
In contrast, international trade focuses on the complex aspects of the growth of multinationals and foreign direct investments, international trade, and the internationalisation of capital and financial markets.
This means you’ll delve into the details of coordinating international trade, as well as financial analysis, international business, marketing or operations, and supply chain.
Consequently, you’ll study global trade-related subjects including macroeconomics, microeconomics, business geography, statistics for analytics, and strategic management. By doing so, you’ll expose yourself to a wide range of perspectives on the global economy and develop important skills in policy and data analysis at various geographic scales.
Why Pursue A Degree In International Business Or International Trade
Pursuing a degree in international business or trade offers numerous advantages, as detailed below：
1. Competitive Edge
- Standing out: In a highly competitive job market, a degree in international business or trade helps you stand out from the crowd when vying for positions in big companies or overseas opportunities.
2. Skills and Perspective Required by Employers
- Multifaceted skills: Multinational companies and trading firms need professionals who are not only good with numbers but also have an international perspective and know how to drive business internationally.
3. Career Development
- Global career: You can develop an exciting career that spans across the globe. This includes the ability to build an international career and interact with global counterparts, enhancing your international business and trade perspective.
- Networking and adaptability: With faculty and community support from a top-ranked university, you’ll be able to network across the industry easily, contribute to conversations, and seamlessly integrate into new environments. In a fast-paced industry, this ability to hit the ground running with minimal guidance is highly valued.
4. Degree Benefits
- Long-lasting and rewarding: A degree in either field offers a career with longevity, challenge, and good demand. It gives you an extra edge over the competition compared to others in the competitive business environment.
- In-depth understanding: You’ll gain a keen understanding of international business commercial aspects, global macro-economic trends, and how to manage international counterparties best.
5. Career Aspirations Alignment
- Ideal for global business roles: If you envision working in a big corporation, conducting large cross-border trade, or building an overseas company branch, pursuing a degree in international business or trade is the right career move.
Embark On Your International Business & Trading Career With SIM
Should you wish to progress and embark upon an exciting career in international business or international trade?
1. Degree Offerings at SIM
SIM offers two relevant degree programmes: Bachelor of Science (Honours) International Business from the University of Birmingham and Bachelor of Arts (International Trade) from the University at Buffalo. These are designed in consultation with employers and industry groups.
2. SIM’s Standing and Lecturers
As Singapore’s leading private education institution, SIM’s lecturers have both professional and academic competence, ensuring a high-quality learning experience.
3. Industry Potential
The international business and trade industry is evergreen, offering potential for a fulfilling career in various exciting roles.
4. University of Birmingham’s Reputation
The University of Birmingham, which offers the International Business course, is among the world’s top 100 universities, ranked 21st in the UK, and a member of the Russell Group.
5. University at Buffalo’s Standing
The University at Buffalo, offering the International Trade course, is a member of the AAU, dedicated to high-level research and academic excellence.
Learn more about the University at Buffalo’s Bachelor of Arts (International Trade).
Read More: Introducing CareerSense: Your Guide to Career Success After Graduation
FAQs
1. What is most important in international business?
The most important factor in international business is understanding cultural differences in managing business operations. Successful companies adapt their communication, marketing, operations, goods, and services to match local behaviours and expectations. Building strong relationships, following international laws, and managing currency risks are also key to operating effectively across global markets.
2. Why is international trade important?
International trade is important because it allows countries to access goods, services, and resources they don’t produce efficiently. It supports economic growth, creates jobs, and offers consumers more choices at competitive prices. Trade also strengthens global partnerships and encourages innovation through competition and shared knowledge.
3. What are the 3 types of international trade?
The three types of international trade are import, export, and re-export trade. Import is bringing goods into a country. Export is selling domestic goods to other countries. Entrepôt trade involves importing goods and re-exporting them after processing or repackaging, often used by trading hubs like Singapore or Dubai.
