| The primary reason most companies trade | | | | by trading blocks, an example of a trading block |
| internationally is to reduce risk, if you think of the old | | | | would be the European union as it's a block of |
| adage of not putting all your eggs in one basket, the | | | | countries that work and trade together and have |
| same applies to the business world and international | | | | agreements. Basically, it means it's easier to do |
| trade, if you've got a stable market here in the UK it | | | | business with some countries than it is with others. |
| might prove prudent to look at how you can grow | | | | European Union regulations have dramatically changed |
| your business internationally. | | | | the very nature of international trade. In terms of |
| The first step you would take when looking into | | | | distribution, you are no longer allowed to sell |
| international trading would be examining your business | | | | exclusively in any specific market, you can't be |
| here in the UK, this would make it easier to start | | | | restricted, but your marketing activities can be. As |
| looking for a market internationally that might | | | | far as agents are concerned, they actually have |
| compliment your own. It's simply a case of thorough | | | | employment rights and you have to be very careful |
| research | | | | about how you appoint them. When it comes to |
| One of the main factors to take into consideration | | | | international trade it would advisable to research very |
| when trading internationally is finance; this is again | | | | thoroughly before you signed anything. |
| going to involve thorough research. Whichever | | | | It's not just the business world which you'll need to |
| country or countries you choose to trade with you | | | | research when trading internationally, you must also |
| will need a very comprehensive knowledge of their | | | | understand local customs, cultures and etiquette too. |
| currency both in relation to your own currency and | | | | One of the nicest things you can do is actually be |
| the value of your product or service. One of the | | | | observant of the business etiquette you're looking at. |
| more secure ways to trade internationally is with | | | | For example if you were to spend a period of time |
| letters of credit, these are a banking instruments you | | | | working with the Japanese, you would learn they are |
| use to insure that you're paid, if you have a letter of | | | | not very keen on hard sell, you'd also learn they |
| credit against any transaction you are guaranteed to | | | | have a tendency to nod their head and say yes a lot |
| get the money as long as you adhere to a set of | | | | as you're talking, this doesn't necessary mean they're |
| criteria that you agree with your customer at the | | | | agreeing with you but that they understand what |
| outset. | | | | you. |
| When it comes to international trade, you should | | | | Punctuality can also be a major area of importance |
| always make sure the export price has been carefully | | | | with international trade, culturally we tend to vary in |
| researched and you understand the different | | | | the way we treat our meetings, in the UK we like to |
| elements of that price, this means your product or | | | | be punctual and we try very hard to keep our |
| service is very unlikely to be marketed at the same | | | | meetings down to about an hour, if you went over |
| price you might charge in the UK. There are several | | | | to Italy, they're not so punctual and it's not an |
| factors you'll need to take into consideration before | | | | offence not to be punctual. In Germany it's a huge |
| concluding a price you wish to market your product | | | | offence to be late for a meeting, some Germans will |
| or service at. The first is how much it might cost you | | | | not see you if you're more than ten minutes late. |
| to collect and convert any foreign currency. Secondly | | | | These things need to be looked at and planned into |
| you'll need to make sure all your logistics are covered | | | | any visit you make. |
| and thirdly, you will have to do some form of market | | | | International trade can be a very complex but very |
| research too and this cost will also need to be | | | | rewarding business venture. As with all business |
| covered in some shape or form. These are just | | | | ventures, thorough research and due diligence is |
| three very generic points and you may come across | | | | essential. There are plenty of organisations out there |
| many more especially when you start to deal with | | | | which are designed to help you, whether it's |
| the specifics of individual countries. | | | | step-by-step assistance you need or just a general |
| Preferential trade agreements are agreements set up | | | | nudge in the right direction. |