Particularly popular articles featured the basics of importing and exporting, as well as how and what you need to know to start your own business. The wider factors affecting Canadian businesses involved in international trade also had people reading.

Whatever matters most to you, we hope this will give you a chance to catch up on some of the hottest articles from the past year that you may have missed, or refresh your memory as we head into 2017.

10. How the lower Canadian dollar is reshaping our economy

The Canadian dollar’s diminishing value has begun to leave its impact on the economy. When compared to United States’ dollar, which has improved in value over the same time period, it might appear to some that Canada is in poor economic shape. While businesses have a reason to be cautious, a weakened dollar actually brings tremendous benefit to Canadian businesses in a variety of industries.

9. Wondering if you should start an import/export business? Here’s what it takes

Global trade is growing, and with it opportunities to increase sales and profits, grow your market share and client base, expand your workforce and reduce the risk to your business. So how can you get in on this trend, and do you have what it takes to be successful in this type of endeavour? We asked two global trade experts who have experience running their own successful businesses about the realities of starting an import/export business.

8. How 3 major challenges to China’s economy will affect Canadian businesses

Recent reports state that China’s economy is showing signs of improvement, after a volatile few years for Canada’s second largest trading partner. However, China continues to face major economic challenges, contributing to what is largely considered to be an unsustainable growth rate.

7. Face Off: Buy Local vs. Buy Global

In the past few decades, the call to support local businesses by patronizing locally sourced and sold products over those that are imported and sold at corporate chains has gained momentum. While there seem to be many benefits to supporting the neighbourhood “mom n’ pop”, not least of which is a warm feeling of doing “the right thing”, is it really best to buy local?

6. Canadian exporters: here’s how to register to do business with the U.S. government

 The good news is that U.S. Government procurement represents a wealth of opportunities for Canadian exporters who are enterprising enough to do the legwork. And, the even better news is that a U.S. Government-wide resource exists, providing details on all proposed procurement actions and contract awards over U.S. $25,000: the Federal Business Opportunities (FBO) website.

5. 5 ways importing and exporting will be more challenging in Trump’s America

Following the global trend for political change, the United States elected a candidate who has promised to shakeup both the political and economic fabric of the country. Donald Trump has promised to reform his country’s approach to global trade, claiming that he can revive the American economy by bringing back jobs that America has, for decades, exported to other countries. In consequence, those looking to enter the U.S. market may find protectionist measures which will create challenges in bringing their products into the country.

4. Statistics prove these 4 benefits to importing and exporting in global markets

According to several recent studies in Canada, the U.S. and the UK, statistics prove that there are significant benefits for companies who export. While going global will never be completely risk-free, these numbers prove that the potential benefits can outweigh any negatives, and help your company excel like never before.

3. What are service exports, and why are they suddenly so important?

Exports are a hot topic these days, but generally when people talk about exports, they are referring to product exports.   Did you know, though, that the fastest growing type of exports is services?   More and more companies are finding profit in exporting services, and several trends ensure that these exports will grow rapidly.

2. 10 books for import-export professionals that you need to read

Books can be incredibly powerful tools for gaining knowledge on a particular topic. When it comes to international trade, there are a number of books that can help you gain real insight and appreciation for this bustling industry. Here are some excellent books to help you broaden your understanding of global trade.

1. The 5 essential stages in developing a successful supply chain

Supply chain management encompasses such a wide range of functions that it can seem daunting, even to the most experienced international businessperson. However, the process can be effectively modelled by breaking it down into several main strategic areas. One common and very effective model is the Supply Chain Operations Reference (SCOR) model, developed by the Supply Chain Council to enable managers to address, improve and communicate supply chain management practices effectively.

The post Top 10 most popular global trade articles from 2016 appeared first on Trade Ready.

The Canadian Chamber of Commerce’s Crystal Ball Report, released in late January, predicted these levels to stay consistent, with a forecasted average of 71 cents U.S. throughout 2016, and a slight rise to an average 74 cents U.S. in 2017.

One of the reasons why the exchange rate is expected to stay at this level is the opposite paths that Canada and the U.S. are following with their currency interest rates.

In December 2015, the U.S. raised their interest rate, for the first time since 2006, to 0.5%. Some reports speculate that it may rise to as much as 1% by the end of 2016.

With recent economic turmoil in the U.S., however, some are suggesting that the country’s interest rate should remain stable until the economy picks up again.

In Canada, however, not only are there no interest rate hikes expected in 2016, but Bank of Canada Governor Stephen Poloz (an honorary CITP®|FIBP®) has publically spoken about negative interest rates as a potential option to spur economic growth.

To make things worse, Canada’s economy has been hit hard by falling oil prices, and investors remain wary of a Canadian housing market that has shown signs of becoming a bubble, as well as rising consumer debt rates.

There’s still good news for exporters

There is one group, however, who stand to benefit from the falling Canadian dollar: Canadian companies who are exporting to the U.S.

Though Canadian companies are beginning to diversify into other markets, the American market still remains the most popular choice for Canadian companies looking to expand internationally.

Over the past several years, a whopping 70-75% of Canada’s exports, on average, have been shipped across the border to American consumers.

With the American economy predicted to grow more quickly than that of Canada, softer retail sale predictions for Canadian consumers in 2016, and a favorable exchange rate which reduces costs for American companies buying from Canada, the stars seem to be aligning for Canadian exporters to boost their American sales.

Peter Hall, Vice-President and Chief Economist for Export Development Canada (EDC) also added that “American consumers are sturdy thanks to solid job growth, rising real wages, restored confidence, better-managed household budgets, and a $100 billion bonus from lower gasoline prices.”

While the oil and gas sector, which comprised 24% of all Canadian exports in 2015, has been hit hard, most other exporting industries experienced major gains in 2015, which are expected to translate into further increases to Canadian exports overall.

According to the Crystal Ball Report, “The auto sector grew by a booming 14% in 2015, and technology exports gained 13%, while aerospace soared by a whopping 29%.

Export Development Canada, the institution with the best track record in forecasting Canada’s international sales, expects that export growth will reach 7% next year, a healthy gain.

The report concludes that because of this increase, the Canadian economy should grow by 1.5% in 2016 and 1.8% in 2017.

While this economic environment may not be ideal for everyone, it has created the perfect opportunity for Canadian companies to either start exporting for the first time, or to increase their international sales and become more competitive in the American market.

Do you think the lower Canadian dollar will benefit Canadian exporters to the U.S. as much as expected? What tips would you offer for companies looking to export for the first time in this economic environment?

The post Could the low Canadian dollar make this the ideal time to export more to the U.S.? appeared first on Trade Ready.

In January, the Canadian dollar fell to the lowest level seen since spring of 2003, settling at around 70 Canadian cents to the U.S. dollar.

The Bank of Canada has continuously lowered the interest rate, as part of a bid to redistribute the economic pain from low oil prices and bottom-level commodity prices to other regions and sectors of the economy.

The sharp drop in the dollar’s value has had a demonstrable impact on the Canadian economy, most notably in international trade.

Natural resources benefiting from payment in U.S. dollars

Broadly speaking, any product manufactured or produced in Canadian dollars and sold abroad, especially in the U.S. market, has benefitted.  However, industries relying on U.S. imports at any point in their business have been stung by unfriendly economics.

At the moment, natural resources being exported to the U.S. are receiving an unexpected boon.

This includes forestry products, energy products – including oil – and minerals and metals products.

The economics are easy to grasp: if natural resources are produced, excavated, and refined in Canada, using Canadian equipment and employees, the costs of production remain the same.

Once these are sold in U.S. dollars – which all metal commodities are priced in, as a default – then the economic rewards for Canadian producers are higher.

Another unexpected boon from the low loonie is the sale of used Canadian cars to U.S. buyers. According to a report from Desrosiers Automotive Consultants, nearly 200,000 used cars were exported from Canada to the U.S. in 2015.

Sales of used Canadian vehicles to American consumers are at their highest levels since 2002, and are substantially higher than the roughly 75,000 used cars sent to the American market in 2014, the report said.

However, the focus on the American market is constraining the availability of used vehicles for Canadian consumers, which drive up prices for used cars in the Canadian market.

Cooling dollar makes Canada a hot destination

Another winning industry in the loonie downturn is travel, with foreigners, particularly Americans, flocking to Canadian tourist attractions to take advantage of a favorable foreign exchange rate.

Because the Canadian dollar is so weak, many Canadians are opting to forego international travel – and may increase the amount of travelers to these Canadian sites.

Canada’s geographic position is a major boost for its economy, as it sits atop the country which arguably has the best performing economy in the developed world at the moment. This reality has softened the blow of the falling dollar, and made it possible for export-oriented industries to continue to thrive.

Canadian manufacturers urged to source locally

Canadian companies suffering from the shift in the Canadian dollar are those which rely on U.S. imports for any part of their supply chain, either in securing parts for their manufactured products or relying on raw materials only available from the U.S.

Canadian economists have advised Canadian companies to aim for all their value chain to be based in Canada as much as possible.

One major drawback for Canadian households as the loonie drops is the cost of fresh fruits of vegetables, largely sourced from California, Florida, and other warm-weather climes.

The price of fruits and vegetables climbed by roughly 10% in 2015, and are slated to go up by as much as 4.5% this year, according to a report from the University of Guelph’s Food Institute.

Headlines in the last few weeks have focused on the increases to cauliflower prices in particular, which are driven skyward not only by the poor exchange rate, but also because of the shortage in the cauliflower crop this year.

High food prices will cut into the budgets of Canadian households, and even more so for those living in the north – where food prices were already sky-high due to high transport costs.

Canadian officials warn that the working poor, students, and senior citizens are likely to suffer most from these price changes.

Has the drooping Canadian dollar affected your business? What are you doing to protect from currency fluctuations like this?

The post Low loonie is a boon for Canadian exporters appeared first on Trade Ready.