ShindoHihi
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Join date : 2014-04-24
 |  Subject: 7 Steps to Profit from the Global Marketplace  Thu Apr 24, 2014 9:56 pm | |
| For the first time in decades, American products and services are price-competitive for prospective customers living in other countries. For small business, this means a radical increase in the number of international consumers who are able and willing to do business with you. Discover how you can profit from the global marketplace.1. Import/Export is at the heart of the global marketplace. However, given the current economic environment, export is hotter than import. Consider marketing more aggressively to the following countries, whose currencies have gained plenty of strength against the dollar in recent quarters. Residents of these countries can purchase more, in dollar terms, than they ever could before.
- European Union countries, especially Great Britain
- Canada
- Slovakia
- New Zealand
- Turkey
2. Produce a product on behalf of a foreign firm.The dollar's weakness also means that American labor is more attractive to Euro-holding buyers. In addition to this economic reality, America retains a great deal of experience and technical know-how. Together, these factors mean your firm might be able to profitably manufacture products on behalf of companies in other countries.3. Invest in a foreign firm. Bear in mind that this is likely a shaky proposition for most small businesses, which probably lack the resources to conduct the due diligence and invest in foreign companies.4. License your product to a foreign firm. China makes the most sense in this category, as the country has a rising middle class eager to buy American goods as well as low-cost manufacturing resources. Build your brand, then convince a foreign company to manufacture your products for its regional market.5. Partner with an existing foreign firm. There are all kinds of potential business partners in the world today. Some companies want to invest capital in America, while others want to manufacture American products. Still others are looking for partners who can help them complete one-off business projects. One way to get started is to contact the Invest in America representative for your state. These contacts can tell you more about how to better position yourself to receive foreign investment.6. Invest directly in a foreign branch with domestic management. If you really want to expand, you'll eventually have to open up shop abroad. When you do so, the less risky option is to manage the branch yourself. However, this will involve not only significant investment, but also worry, as you will have to travel frequently and navigate the laws of the country in which the foreign branch is located. If you have a trusted business partner who can take charge of a branch in that country, this becomes a more attractive option.7. Invest directly in a foreign branch with foreign management. This is an extremely unlikely option for most small businesses, who, unlike multinationals, lack the resources to govern managerially and operationally separate international branches.Toeing the Global Trade LineWhile ambitious and sophisticated small businesses will aggressively explore international trade expansion, the reality is that most US small businesses will probably never get past step No. 1 above. That's fine - paying sufficient attention to the mechanics of the global marketplace can be extremely rewarding in itself. Try to follow these two maxims:
- Increase your foreign sales exposure. Analyze your existing customer base; for example, by looking at the IP logs for your Web site, you can glean how many customers you have in Mexico. Why not appeal to them by offering a Spanish version of your product catalog? Or do market research and try to determine the global trade demand for what you sell. If there is appreciable demand for your product in a foreign country, reach out to that market in your advertising and marketing activities.
- Source from low-cost countries. Parts from China are much less expensive than parts from Europe or procured domestically. If your product consists of a number of parts, try to source them at the lowest cost possible. This will involve doing business with foreign, particularly Chinese, companies. This carries its own special kind of risk, which is why you always should research potential partners diligently and begin by placing small orders. Building trust across borders takes time, but it can be very profitable for you.
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