There is a wide range of choice and opportunity in trade. How you utilize these business opportunities will largely determine the success and growth of your business. One huge area of trade that many companies fail to embrace, however, is that of international trade. International trade offers a wide range of opportunities from cheap manufacture to significantly increased product demand. Companies that fail to tap into these opportunities mainly do so because it is simply an unknown field and they do not know how to proceed. This article explains why and how you should utilize international trade opportunities.
International trade can provide two key opportunities that can enable you to greatly increase the profits in your business. These opportunities are the access to cheaper manufacture and a wider audience:
Engaging Cheaper Manufacture
In developed countries, manufacture is very expensive because labour is expensive. In many developing nations, however, labour and thus production costs are far lower. There are also further cost reductions that can be derived from sourcing materials from the same region instead of shipping them over great distances to be utilized. Engaging cheaper overseas manufacturing costs can enable you to lower prices and increase profit margins per item too. This helps you to sell more and make more profit from each sale.
Reaching a Wider Audience
Trading internationally can also be considered the other way around as an export opportunity. The United Kingdom may have more than 60 million people, but the world is comprised of an estimated 7 billion people. If you can tap into just 0.1% of this international market then your overall trade figures, turnover and profit will accelerate dramatically. Trading internationally requires an understanding of business cultures and you will likely also need to make changes to the way you trade, but it is such a huge market that the potential of this opportunity is enormous.
How Can I Embrace International Trade Opportunities?
Trading internationally is much the same as trading nationally, but there are special considerations to make and new rules that you will need to learn. In an international forum, you will need to be aware of cultural differences that affect business and you will need to be ready to expand:
Understanding Your Customer
Understanding your customer is difficult enough on a national level, but this is made much more difficult when you are embracing international trade and dealing with multiple disparate business cultures and etiquettes. Utilizing existing institutions like the Institute of Diplomacy and Business can help you to understand the international differences that you will face when trading overseas. This is vitally important for any international business because understanding your customer is the first crucial step in marketing correctly and offering a service that is desired. Understanding international business partners is equally as important because you will rely on them to provide a service that may be run very differently to manufacture at home.
Expanding Your Business
If you are looking to open your trade internationally, then you will of course be looking to expand. Expanding too slowly can cause significant problems for businesses looking to enter into a new market, because if you cannot meet demand then you will lose respect as a brand and service provider. This loss of face can be very damaging and needs to be avoided. Ensuring that you have the means to offer what you advertise before you reach out to customers is thus vitally important.
