Go Worldwide: The Benefits Of International Trade For Businesses
There are a number of benefits of international trade for businesses, big or small. Although it may seem daunting to start exporting your products and trading with foreign countries - it really doesn’t have to be. As long as you do your research and understand the basics, there is nothing holding you back from reaping the benefits that come along with trading globally.
There are a number of benefits of international trade for businesses, big or small. Although it may seem daunting to start exporting your products and trading with foreign countries - it really doesn’t have to be. As long as you do your research and understand the basics, there is nothing holding you back from reaping the benefits that come along with trading globally.
Increased revenue
The overarching advantage of trading internationally is the bettering of your chances of an increase in revenue. When you begin trading with a new country, you are widening your clientele and are opening your business up to more diversity and more customers. With the opportunity for a huge increase in sales, it almost seems silly to limit your business to the UK. An example of the support that’s out there for you and your business if you are considering going global, and expanding into global trade is ManSys. Their global trade and export documentation software and the technical support they offer is available to a wide range of companies and sectors, offering help with all aspects that may seem tricky about going international, such as quoting and arranging transportation for your goods.
Decreased competition
Reduced competition is another of the potential benefits of international trade. By offering your services or products in a new country, you may be targeting a market where your service is not yet available or heard of. There will therefore naturally be a lot less competition to worry about. If you are facing increased competition in the UK, going global could be a way to improve sales by entering into a fresh and less saturated market.
Risk spreading
If you are offering your service in more than one country, you are not dependent on just one market for your revenue. There could, therefore, be decreased risk if a certain market is to fluctuate, which can occur as a result of a number of environmental, economic or social factors. Spreading risk could, therefore, be considered as having numerous benefits of international trade and could increase the life-span of your service or product. There are, of course, initial costs involved with going international which should not be underestimated.
Immediate payments
Staying on the topic of money, foreign countries tend to be more immediate (or even early) with their payments for services/products. Having to chase up payments is both time-consuming and stressful so the prospect of having payments coming through immediately when dealing with foreign countries can definitely be considered as one of the benefits of international trade. Of course, there are risks too, however alternate payment methods can be used and credit insurance can be sought.
Brand reputation
Though your brand may be established in the UK market, having a global reputation would be even better. Entering into international trade is really the only way to raise awareness for your brand on such a scale. Set your business realistic aims for trading internationally, such as achieving good working relationships with a number of global clients and then go from there… Depending on the market you are entering, your brand could end up being recognised worldwide.
From reading this post you will hopefully feel better about the numerous benefits of international trade. However, like with every big decision, it’s not one to take lightly. There are a number of risks such as changes in exchange rates and initial investments which you should definitely take into account.
This post is in collaboration with ManSys, who specialise in software for international trade and export documentation.