Importance of Exchange Rates in International Business
Exchange rates determine how much one currency is worth in relation to another. These values fluctuate constantly in response to market dynamics such as economic performance, geopolitical developments, central bank policies, and investor sentiment. For example, the value of one US dollar might be 144 Japanese yen today, but that same dollar might have been worth 150 yen just a few weeks ago.
These fluctuations may seem small, but they can have serious consequences for businesses making large or frequent international payments. Even a one percent difference in exchange rates can lead to thousands in losses or savings, depending on the size and volume of the transactions.
Currency conversion isn’t just about math; it’s about timing, market access, and financial strategy. For businesses with international operations, having a clear understanding of exchange rates can be the difference between profitability and unnecessary cost.
Retail Exchange Rates vs. Mid-Market Exchange Rates
Most businesses that use traditional banks for foreign currency exchange unknowingly settle for retail rates. These rates include a markup added by the provider to generate profit. In contrast, the mid-market exchange rate is considered the most accurate reflection of a currency’s value at any moment. It’s the midpoint between the buy and sell rates used in the interbank market.
Retail rates often hide margins that range from one to five percent or more. These added costs are rarely disclosed transparently and can become a significant drain on working capital. For example, exchanging £100,000 with a 4.5 percent markup could cost a business £4,500 more than necessary. These are real costs that directly impact a company’s bottom line.
What Is the Mid-Market Exchange Rate?
The mid-market exchange rate—also referred to as the interbank rate, midpoint rate, or mid-rate—is the midpoint between the buying and selling prices of two currencies in the open market. In the foreign exchange market, currencies are traded in massive volumes by banks, financial institutions, and large corporations. These entities deal in bid (buy) and ask (sell) prices.
The bid price represents the maximum price a buyer is willing to pay for a currency, while the ask price represents the minimum amount a seller is willing to accept. The mid-market rate is the average of these two values. For example, if a bank is willing to buy euros at 1.0950 USD and sell them at 1.1050 USD, the mid-market rate would be 1.1000 USD.
This rate is considered the most neutral and fair because it doesn’t include profit margins or transaction fees. It reflects real-time supply and demand and is used by institutions as a benchmark for currency valuation.
The Bid-Ask Spread and Institutional Profit
To understand why banks and traditional providers don’t offer the mid-market rate to customers, it’s necessary to consider the bid-ask spread. This spread is how banks generate revenue from foreign exchange services.
Imagine a traveler exchanging dollars for British pounds. They might be offered an exchange rate of £0.70 per dollar when converting their money abroad. If they try to convert the remaining pounds back into dollars, they might only receive £0.80 per dollar. The difference between these two rates is the spread, and it ensures that the institution makes a profit on both sides of the transaction.
This concept applies to corporate transactions as well. Businesses using traditional banks for international payments are typically subject to wider spreads, especially if they don’t have significant negotiation leverage or access to wholesale FX markets. The wider the spread, the more the business pays in hidden costs.
Market Forces That Influence Currency Value
Exchange rates are not static—they change by the second based on a wide range of factors. Currency values are primarily influenced by supply and demand, which in turn are shaped by economic indicators and market sentiment.
Some key drivers include:
- Interest rates: Higher interest rates attract foreign investors seeking returns, increasing demand for a currency.
- Inflation: Lower inflation rates typically strengthen a currency’s purchasing power.
- Economic performance: Strong GDP growth and low unemployment usually signal economic health, increasing currency demand.
- Political stability: A stable political environment encourages investment, boosting currency strength.
- Central bank policies: Decisions around money supply and rate adjustments directly affect exchange values.
- Global events: Geopolitical tensions, trade agreements, and crises can all cause sharp movements in FX markets.
Understanding these variables is essential for businesses aiming to manage FX risk and optimize their timing for currency conversions.
The Cost of Relying on Retail Exchange Rates
Most companies still use traditional banks and financial providers for their international payment needs. What they don’t realize is how much they’re losing to inflated exchange rates.
Let’s consider an example. A company based in the UK needs to pay a supplier in the US $250,000. The mid-market rate for GBP/USD is 1.3000, but their bank offers a retail rate of 1.2700. The 2.3 percent difference may seem small, but it means the business will need to convert £196,850 instead of £192,308—a loss of £4,542.
When repeated across multiple transactions, this pattern adds up. Businesses may lose tens of thousands annually simply because they’re not accessing the best available rates. These avoidable costs reduce profitability, limit reinvestment potential, and weaken financial resilience.
Can Businesses Access the Mid-Market Rate?
For years, the mid-market exchange rate was only accessible to institutional traders and large financial firms. Retail customers and small businesses had no choice but to use bank-provided rates. But the landscape is shifting.
Technology has made it possible for modern platforms to offer currency exchange services that mirror or match the mid-market rate. These platforms operate with lower overhead, use digital infrastructure, and eliminate traditional banking inefficiencies.
The result is that businesses of any size can now access real-time mid-market rates for international transfers, hedging, and payment settlements. By bypassing outdated financial models, companies can reduce the cost of doing business globally and increase operational transparency.
Benefits of Using the Mid-Market Rate
Transparent Exchange Rates
One of the most immediate advantages of using the mid-market rate is transparency. Unlike marked-up retail rates, the mid-market rate provides a clear and neutral reference. It allows companies to compare what they’re being offered by various providers and make informed decisions based on real data.
This level of transparency builds trust within finance teams and enables more strategic financial planning. It also helps businesses benchmark costs and negotiate more effectively with partners and vendors.
Significant Cost Savings
Every basis point counts when dealing with large sums of money. The savings from using the mid-market rate can be substantial over time. Whether your company sends ten payments a year or a thousand, shaving even one percent off FX costs can represent a major boost to margins.
Consider a firm that makes monthly transfers of $50,000 to an overseas manufacturer. If each transaction is subject to a 2.5 percent markup, the annual cost of currency conversion is $15,000. Eliminating that markup by using the mid-market rate saves the entire amount.
These savings can be reinvested into growth initiatives, staff development, or product innovation.
Better Predictability and Planning
Retail exchange rates are inconsistent and often unpredictable. Banks may adjust their rates multiple times a day, depending on internal pricing models and market movements. This volatility makes it difficult for businesses to forecast costs and manage budgets.
In contrast, the mid-market rate offers a more consistent benchmark. It reflects live market conditions without additional noise from institutional pricing strategies. Finance teams can use it for modeling future costs, setting contract terms, and building payment schedules that align with their FX strategy.
Improved FX Risk Management
Foreign exchange risk can have serious implications for companies operating internationally. Sudden currency swings may impact receivables, increase liabilities, or devalue revenue streams. Businesses that operate on tight margins are particularly vulnerable.
Using the mid-market rate as a benchmark provides a foundation for managing this risk. Companies can monitor currency movements in real time, analyze trends, and time their conversions for optimal results. Additionally, many modern platforms offering mid-market rates also provide tools for hedging, batch payments, and rate alerts.
Enhanced Supplier and Customer Relationships
International business relationships depend on trust, fairness, and clarity. When a company pays suppliers using opaque or unpredictable FX rates, it may strain the relationship and complicate negotiations. Suppliers may increase prices to offset potential losses from poor conversion rates.
Likewise, customers paying in foreign currencies expect a fair deal. Being able to convert funds at a competitive rate ensures accurate pricing, maintains trust, and encourages long-term cooperation.
Fintech Innovation and Access to the Mid-Market Exchange Rate
In the past, access to favorable foreign exchange rates was largely reserved for large financial institutions and multinational corporations. Today, financial technology is changing that. With advancements in digital platforms, automation, and global financial infrastructure, businesses of all sizes can now tap into the same interbank rates once limited to elite market players.
This shift is revolutionizing the way companies handle international payments, reducing costs, increasing efficiency, and enabling smarter currency conversion strategies. By leveraging cutting-edge technology, businesses can now access mid-market exchange rates directly, bypassing traditional banking barriers.
A Changing Landscape in Global Finance
The financial world has evolved rapidly over the last decade. Traditional banking systems, once the only channel for handling foreign currency transactions, are facing competition from nimble, tech-driven platforms. This transformation stems from rising global demand for faster, more affordable, and transparent cross-border financial services.
Many legacy institutions still operate on outdated models, passing along costs and delays to their clients. These models typically involve layers of intermediaries, each adding their own fees and margins. As a result, businesses face inflated exchange rates, hidden fees, and unpredictable processing times.
Fintech disruptors have emerged as a response to these inefficiencies, offering more streamlined and accessible alternatives. These platforms leverage automation, artificial intelligence, and API integrations to provide services that rival or exceed those of traditional financial providers.
Mid-Market Exchange Rate and Its Role in Modern FX
At the heart of these innovations lies the mid-market exchange rate. This rate, also known as the interbank rate or midpoint rate, is the most accurate reflection of a currency pair’s value at a given moment. It represents the average between the buying and selling prices quoted by banks in the open market.
Because it excludes the profit margins that are built into retail exchange rates, the mid-market rate serves as a benchmark for fair and transparent currency conversion. It allows businesses to evaluate provider offers and negotiate better terms, especially when engaging in regular or high-volume cross-border transactions.
The availability of real-time access to this rate is a game changer. It allows businesses to monitor currency fluctuations, optimize the timing of their conversions, and implement strategies to mitigate currency risk.
How Fintech Platforms Deliver Access to Mid-Market Rates
The key to delivering mid-market rates lies in direct market access. Fintech platforms are designed to connect users with live interbank data and real-time liquidity. Unlike banks, which often add hidden margins to their published rates, these platforms aim to pass through the raw mid-market rate with little or no markup.
Aggregating Real-Time Data
One of the primary advantages of technology-driven financial services is their ability to aggregate and analyze live market data from multiple sources. This ensures that the exchange rates provided are as close to real-time as possible, giving users accurate pricing when they need it.
By integrating directly with foreign exchange markets and liquidity providers, these platforms can offer tighter spreads and more competitive rates than traditional channels.
Transparent Pricing Structures
Modern financial solutions focus on cost transparency. Instead of hiding margins within the rate, they often charge a clearly disclosed fee—usually a small percentage or fixed cost—separate from the exchange rate itself. This approach gives users full visibility into the cost of each transaction.
With transparent pricing, businesses can compare providers more easily, assess the true cost of their currency conversions, and make decisions that align with their financial goals.
Automation and Intelligent Routing
Advanced fintech platforms use automation to route transactions through the most efficient channels. This not only speeds up processing times but also reduces costs by minimizing the number of intermediaries involved.
Automation also allows businesses to set rules and conditions for currency conversions. For example, a company may choose to convert a foreign currency only when the rate exceeds a certain threshold, ensuring better returns and reduced FX exposure.
The Evolution of Business Payments
Traditional international payments can be slow, opaque, and expensive. A simple cross-border transfer through a bank might take several business days to settle and incur fees at every stage—correspondent banks, intermediary networks, and recipient institutions.
Fintech platforms simplify this process by creating a more direct route between sender and receiver. Many now offer multi-currency accounts, allowing users to hold and manage different currencies without needing to convert them immediately. This functionality gives businesses greater control over their foreign balances and allows them to convert funds only when the exchange rate is favorable.
These accounts can be integrated into a company’s broader financial infrastructure, streamlining payables and receivables while reducing reliance on banks for foreign transactions.
Benefits of Fintech Access to Mid-Market Rates
Lower Foreign Exchange Costs
By avoiding the retail exchange rate and instead using the mid-market rate, businesses can significantly reduce their foreign exchange costs. Even a small percentage difference in rates can translate into substantial savings when dealing with large transfers.
For instance, a business that sends $500,000 per month overseas could save tens of thousands annually by switching from a traditional provider with a 3% margin to a platform offering the mid-market rate with a small transaction fee. These savings can improve overall margins, enhance competitiveness, and free up funds for reinvestment or operational use.
Faster Settlement Times
Speed is crucial in international business. Traditional payment methods may take several days to complete, delaying supplier payments, customer refunds, or payroll processing. Delays can create cash flow bottlenecks and disrupt operations.
Fintech platforms typically use direct settlement networks and smart routing to reduce transfer times. Many payments are processed within hours or even instantly, depending on the currencies and countries involved. This acceleration of settlement times allows businesses to operate more efficiently and respond quickly to changing market conditions.
Real-Time Currency Monitoring and Alerts
Having access to live mid-market data enables proactive financial decision-making. Businesses can track currency trends, set alerts for specific thresholds, and schedule transactions when rates are most favorable.
This functionality supports strategic planning, helping businesses avoid unfavorable rates and hedge against future volatility. In volatile markets, the ability to react quickly can make a substantial difference in profitability.
Reduced Dependence on Banks
Relying exclusively on banks for international payments limits a company’s flexibility. Banks typically offer limited FX options, higher fees, and slower service compared to fintech alternatives.
By incorporating modern financial platforms into their payment infrastructure, businesses can diversify their risk, gain better pricing, and avoid the inefficiencies of legacy systems. This independence empowers finance teams to execute global strategies with greater agility.
Integration With Business Tools
Modern fintech platforms often provide integration with enterprise resource planning systems, accounting software, and e-commerce tools. These integrations automate workflows and reduce administrative overhead.
For example, a business selling online across multiple countries can automatically reconcile foreign revenues, convert balances to a home currency, and generate compliant invoices—all from a single interface. This kind of automation improves accuracy, speeds up financial reporting, and reduces the need for manual intervention.
Mid-Market Access and Financial Planning
Access to the mid-market exchange rate isn’t just about better pricing; it supports smarter financial planning and global strategy. With more predictable and transparent currency conversion costs, businesses can budget more accurately, price products fairly, and make long-term decisions with confidence.
Contract Negotiations
Businesses often enter into agreements that involve foreign currency payments. Access to accurate exchange rate data allows them to negotiate better terms and minimize the impact of rate fluctuations.
For instance, a service provider based in Europe might agree to charge a client in the US in euros. By locking in a favorable exchange rate or agreeing on periodic reviews based on mid-market data, both parties can protect their financial interests.
Revenue Forecasting
When dealing with international sales, currency movements can affect projected revenue. If a business is earning income in multiple currencies, converting at inflated retail rates can distort actual profitability.
Using the mid-market rate as a forecasting benchmark allows finance teams to assess true revenue potential and prepare for rate-related risks. This clarity helps ensure that pricing strategies remain sustainable and competitive.
Managing Currency Risk
Volatility in the FX market is a constant challenge for businesses with global exposure. Sudden changes in exchange rates can cause cost overruns, margin erosion, or missed profit targets.
Platforms that provide access to mid-market rates often offer additional risk management tools such as forward contracts, rate locks, and automated conversion thresholds. These tools help companies manage exposure and avoid unfavorable swings that could affect financial stability.
Real-World Impact Across Industries
The benefits of fintech-driven FX solutions extend across many sectors:
- E-commerce companies selling in international markets can convert revenue at better rates and reduce repatriation costs.
- Freelance platforms and service marketplaces can pay contractors worldwide using real-time rates, enhancing satisfaction and retention.
- Import/export businesses can stabilize margins by timing payments based on favorable currency movements.
- Educational institutions receiving tuition from abroad can optimize income by reducing FX leakage.
- Travel and hospitality providers can settle overseas vendor payments quickly and affordably, improving operational efficiency.
In each of these cases, the ability to access and utilize the mid-market rate leads to greater financial clarity, stronger cash flow, and better business decisions.
Building a Currency Strategy for Global Success
As businesses expand across borders, managing foreign currencies becomes more than just an operational task—it becomes a strategic function. Every international transaction carries a level of foreign exchange exposure, which can either boost profits or erode them, depending on how well a business manages its currency strategy.
Understanding and implementing a strong currency management framework enables companies to seize market opportunities, mitigate risks, and operate with greater confidence in global markets. We explored the components of an effective currency strategy and how companies can use mid-market exchange rates and financial planning to achieve global success.
Why a Currency Strategy Matters
Many businesses start international operations without a clear foreign exchange plan. In the early stages, currency exposure may seem minor. However, as cross-border activities increase, so do the risks—and the opportunities. Fluctuating exchange rates can impact everything from supplier contracts to revenue recognition.
An unstructured approach often leads to increased costs, missed opportunities, and inconsistent profit margins. A structured currency strategy, by contrast, aligns currency conversion with a business’s financial objectives and growth targets. It ensures that international revenues, expenses, and capital flows are optimized for maximum efficiency.
Key Goals of a Currency Strategy
A well-crafted currency strategy supports several core business objectives. These include:
- Cost optimization for cross-border payments and receipts
- Minimization of foreign exchange risk exposure
- Predictability in forecasting and budgeting
- Flexibility in market timing for currency conversion
- Competitive advantage through pricing stability
The goal is not to eliminate currency risk entirely—this is rarely possible—but to manage it effectively and turn it into a controllable aspect of the financial planning process.
Assessing Your Current Currency Exposure
Before implementing any strategy, it’s important to assess your current level of exposure to foreign currencies. This assessment includes analyzing:
- Revenue sources: What percentage of revenue is generated in foreign currencies?
- Expense obligations: Are there suppliers, contractors, or offices abroad?
- Financial instruments: Do you have loans or investments denominated in foreign currencies?
- Timing differences: Are there gaps between earning foreign currency and converting it?
- Accounting impacts: How do exchange rate fluctuations affect financial reporting?
By mapping all the touchpoints where currency plays a role, finance teams can better understand where volatility poses a threat and where opportunities might exist.
Defining Your Risk Tolerance
Different businesses have different levels of risk tolerance when it comes to exchange rates. For example:
- A small e-commerce business may choose to convert currency daily to avoid holding foreign funds.
- A multinational firm may decide to hedge currency positions over a 6- or 12-month horizon to protect earnings.
- A seasonal exporter may build flexibility into contracts to account for expected fluctuations.
Establishing a clear risk profile helps guide decisions around hedging, conversion frequency, pricing, and contract negotiation. It also helps align currency strategy with broader business objectives such as expansion, margin improvement, and cash flow stability.
Timing and Frequency of Currency Conversion
One of the most impactful components of a currency strategy is timing. Converting foreign funds at the right moment can result in significant savings or earnings gains. Conversely, poor timing can lead to reduced profitability.
Businesses should evaluate their approach to timing based on:
- Market conditions: Are exchange rates currently volatile or stable?
- Operational cycles: Are there specific months when conversions peak?
- Liquidity needs: Does the company need immediate cash or can it afford to wait?
- Rate targets: Are there predefined favorable exchange rates that trigger conversions?
Establishing thresholds and using historical data helps create a structured framework for making these decisions.
Leveraging Real-Time Exchange Rates
Having access to real-time foreign exchange data gives businesses a competitive edge. Monitoring live mid-market rates provides transparency and allows businesses to:
- Identify favorable conversion windows
- Benchmark bank or provider rates against interbank standards
- Avoid panic conversions during volatile periods
- Make rate-informed decisions on invoicing and contract pricing
Real-time monitoring tools can also issue alerts when market conditions meet predefined targets, enabling timely action.
Managing Foreign Currency Receivables
For companies that earn income in foreign currencies, deciding when and how to convert receivables is crucial. Holding foreign funds may be advantageous during periods of favorable rate trends, but it also exposes the company to risk.
A few strategies to consider include:
- Batch conversions: Accumulating receivables and converting in bulk to save on transaction costs
- Scheduled conversions: Setting fixed days each month to convert funds, reducing rate timing pressure
- Threshold-based actions: Converting only when rates meet or exceed predefined benchmarks
- Currency holding accounts: Maintaining balances in local currency until conversion becomes strategic
The right mix depends on a business’s cash flow needs, risk tolerance, and operational complexity.
Optimizing Foreign Currency Payables
Just as with receivables, managing foreign currency payables strategically can drive significant cost savings. Businesses that pay international suppliers or freelancers in local currencies can:
- Lock in exchange rates in advance to secure predictable costs
- Time payments based on rate trends to take advantage of favorable movements
- Negotiate payment terms that include currency risk-sharing with suppliers
- Use multi-currency wallets to hold funds and execute payments when rates are most advantageous
The goal is to balance timing flexibility with supplier expectations and financial discipline.
Hedging and Forward Planning
Hedging is a powerful technique used to mitigate the risk of currency fluctuations. While not suitable for every business, it is especially valuable for companies with large, recurring international obligations.
Types of hedging strategies include:
- Forward contracts: Agreements to buy or sell a currency at a fixed rate at a future date
- Currency options: Contracts that provide the right, but not the obligation, to exchange currency at a specific rate
- Natural hedging: Structuring operations so that income and expenses occur in the same currency
Hedging should be approached carefully, with an understanding of both the costs and benefits. It works best when tied to specific exposures, such as known payables, receivables, or project costs.
Incorporating Currency Strategy into Financial Planning
An effective currency strategy is most impactful when it is integrated into broader financial planning. This includes:
- Budgeting: Using realistic and market-aligned exchange rates for forecasts
- Pricing: Adjusting pricing models to protect margins from FX swings
- Profit and loss management: Segmenting currency impacts from core business results
- Treasury planning: Managing cash reserves across currencies for optimal liquidity
Integrating currency considerations into strategic planning ensures alignment between FX management and overall business performance.
Contract Structuring and Currency Clauses
International contracts are another key area where a strong currency strategy pays dividends. Poorly structured agreements can expose businesses to unexpected losses. To mitigate this, contracts can include:
- Currency denomination clauses: Defining which party bears the FX risk
- Adjustment clauses: Allowing pricing or payment terms to shift based on rate changes
- Conversion provisions: Clarifying when and how currency conversion takes place
- Benchmarking references: Citing the mid-market rate as the basis for conversion
These elements provide clarity and help avoid disputes, especially in long-term agreements or those tied to volatile currencies.
Currency Strategy for Growing Markets
Emerging and fast-growing markets often present unique currency challenges. These markets may have higher volatility, limited currency convertibility, or regulatory restrictions. To succeed in such environments, businesses should:
- Monitor geopolitical and economic trends closely
- Use currency controls and local accounts when necessary
- Seek local partnerships to navigate regulatory landscapes
- Diversify currency exposure to spread risk
Entering high-growth regions can be highly rewarding, but requires a tailored currency strategy that considers local dynamics.
Building Internal Processes for Currency Management
Implementing a currency strategy is not just a finance team function—it requires cross-functional alignment. Internal processes and communication protocols should support:
- Currency conversion approvals and thresholds
- Real-time exchange rate access for procurement and sales
- Reconciliation of foreign balances with accounting and reporting systems
- Ongoing training for teams involved in international transactions
Establishing clear workflows ensures consistency and reduces the likelihood of costly errors.
Tools and Technologies to Support Your Strategy
Technology plays a central role in enabling a robust currency strategy. The right tools can automate processes, enhance visibility, and reduce reliance on manual tasks. Businesses should consider:
- Multi-currency accounts that allow holding, sending, and receiving in local currencies
- Real-time dashboards with exchange rate data and trend analysis
- Automated conversion rules and notifications
- Integration with ERP, accounting, and invoicing systems
- Analytical tools to measure currency exposure and track performance
These tools not only reduce friction but also improve the strategic quality of decision-making.
Currency Strategy as a Competitive Advantage
In today’s global business environment, managing currency well is not just about avoiding losses—it’s about creating an edge. Companies that execute a disciplined and proactive currency strategy are often better positioned to:
- Offer more competitive pricing to international customers
- Expand into new markets with confidence
- Maintain consistent margins despite currency volatility
- Build stronger supplier relationships through stable payments
- Achieve higher profitability through lower FX costs
Whether a business is operating across one border or ten, currency management becomes a lever for growth and resilience.
Conclusion
In the evolving landscape of international commerce, currency exchange is no longer just a back-office function—it’s a core component of strategic business planning. As companies scale globally, understanding the intricacies of foreign exchange and leveraging the mid-market exchange rate can lead to significant financial and operational advantages.
The mid-market rate represents a fair, neutral benchmark, free from hidden markups. Unlike traditional retail rates, which often include high and opaque margins, the mid-market rate provides transparency and accuracy. This empowers businesses to reduce unnecessary costs, increase pricing fairness, and make more informed decisions.
Through this series, we explored how fluctuating exchange rates impact every facet of global operations—from supplier payments to revenue collection, from forecasting to long-term contract negotiations. By embracing the mid-market exchange rate and incorporating it into a broader currency strategy, companies can enhance predictability, improve margins, and drive international growth with confidence.
A well-structured currency strategy also protects the business from exposure to unpredictable rate movements. Whether through careful timing of conversions, use of multi-currency accounts, or alignment of currency inflows and outflows, businesses gain control over one of the most volatile aspects of global trade.
Ultimately, mastering foreign exchange is about more than just saving money. It’s about building resilience, enabling expansion, and positioning the business to compete successfully on a global scale. With access to real-time exchange data and modern financial tools, businesses of all sizes now have the power to harness the full potential of international markets—without being held back by excessive conversion fees or poor rate timing.
Global success requires a deliberate approach to managing currency. By prioritizing mid-market exchange rates and embedding currency strategy into financial planning, companies can transform foreign exchange from a cost center into a source of growth and competitive advantage.
