How
businesses in London can benefit from global trade
International trade has in recent times attracted a lot of attention from those
who are doing business
in London .
This interest is not restricted to a particular industry or sector. It is a
blanket phenomenon that has been attributed to the strong UK pound and the
current 0.5% interest rate.
As you prepare to begin research on the different markets you could take your
business to, there are a number of countries to which you should pay special
attention. Economists predict that in the near future, Brazil, Russia, India
and China (BRIC) will be bigger markets than the top six most developed
countries in the world today. This makes them extremely important players in
the world market. While this prediction may take up to 40 years to come true,
you need to start understanding these markets today.
Brazil
For a country with an internet penetration rate of only 40%, Brazilians have done quite well to be one of the top three countries that spend the most time online. This situation when coupled with a growing middle class that has seen its purchasing power increase, means that business owners would do very good business through e-commerce.
Russia
The Russian market is known for having an
insatiable appetite for high end international brands. The country is one of
the largest importers in the world and this is despite having strict trading
rules and policies regulating trade. Retail and import of luxury products are
two of the best opportunities to consider in Russia.
India
In recent times, India has done a lot to increase economic activity within its borders. Tariffs and trade barriers have been significantly reduced, foreign investment policies are less stringent and a lot of other economic reforms have been witnessed. With India being home to a sixth of the world's population, it presents a huge market for anyone in search of a business opportunity. The fact that 40% of people living in India are 19 or younger, UK businesses dealing in youth products will find booming business in this country.
China
China is home to the world's largest population and as such it is the world's largest market. With the steadily improving economic prospects of its more than 1.3 billion citizens, coupled with the trade liberalisation process that is currently under way, China is an excellent market through which you can expand your business.
Another important consideration that you must have in mind as you go into international trade is shipping and international customs regulations. Understanding these regulations will significantly improve your business operations as you will avoid inconveniences. While most people think that customs rules only have to do with illegal goods, you will be surprised by bans on very "innocent items. An example is Algeria which has a ban on the importation of dental products.You will also have to ensure that you correctly calculate your costs and profit margin before setting prices. Unlike domestic business, international trade has a bigger number of costs that are usually higher. Proper research is critical to your success in global trade and you must use reliable resources to gather your information. The British Chamber of Commerce or BCC, the Overseas Market Introduction Service and the UK Trade and Investment also known as UKTI are some of the best places to collect international trade information from. An international courier such as DHL is an excellent resource when looking for information on customs regulations for the countries you are looking to export to.
