For Joshua Egba, CITP, international trade represents meaningful opportunities to develop business, shape growing nations, and foster inclusivity through partnerships. From the earliest days of his career, his work has been guided by a deep belief that economic growth is a powerful driver of development, with trade being one of the most impactful levers to unlock that growth, especially in emerging markets.

“Ultimately, I chose a career in international trade because I wanted to help shape systems that create opportunity, especially in regions that have long been underserved. International trade became my conduit for doing just that.”

Today, as the Senior West Africa Representative for the U.S. Trade and Development Agency, Joshua stands at the heart of some of the most significant United States-Africa commercial initiatives of the past decade. His work bridges public and private sectors, connects policymakers with innovators, and turns promising ideas into development-driven trade projects with measurable impact.

Where development, policy, and trade intersect

Joshua’s international journey began shortly after earning his economics degree and later a master’s in international business. He was drawn to the intersection of economic empowerment and global markets—especially how trade could “create jobs, shift mindsets, and support long-term transformation.” He was also energized by the potential of public-private partnerships and the idea that smarter policy design, backed by international cooperation, could make doing business easier and more inclusive.

His early career placed him directly at that crossroads. Working on U.S. trade and development policy for Africa, he quickly saw how reforms, capacity building, and public-private cooperation could reshape entire market environments.

One of his most memorable career moments came in 2016. During this time, he was privileged to join the U.S. Secretary of Commerce and senior U.S. business executives who comprised the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) on a trade mission to Nigeria. Chaired by the U.S. Secretary of Commerce, the Council was formed to advise the U.S. President on ways to strengthen commercial engagement between the U.S. and Africa.

This trip provided an opportunity for the PAC-DBIA members to gather facts about the commercial opportunities and challenges in Nigeria and Rwanda, report back to the U.S. President with strong and actionable recommendations, and develop policy ideas that would benefit both countries and raise the commercial relationship to the next level.

Joshua’s work was instrumental to the initiative’s success. “I helped lay the groundwork for the formation of Nigeria’s Presidential Enabling Business Environment Council (PEBEC)—a powerful example of how trade facilitation and investment climate reform could be localized and led by national champions.”

“This experience reinforced for me the real-world impact that well-structured trade initiatives can have.”

Driving innovation through U.S.–Africa partnerships

More recently, Joshua was part of a 2022 transportation-technology initiative at the Port of Abidjan in Côte d’Ivoire—a project that he is proud of.

“In 2022, I worked on an activity where a U.S. entity that develops intelligent transportation systems to improve freight transportation piloted their technology at the Port of Abidjan,” he says. The project explored how smart systems could alleviate congestion, streamline cargo flows, and support the country’s growing logistics sector.

The effort was built on earlier U.S.–Africa knowledge-exchange programs and showed how reverse trade missions and pilot studies can directly shape local infrastructure plans. In the end, his work paid off: “The project would ultimately assist Cote d’Ivoire’s Ministry of Transport in developing a truck parking and logistics center using technologies from a U.S. company.”

Partnerships as a cornerstone to trade reform

There are many insights Joshua has picked up over his 15-year career, but one stands out above the rest:

“I have learned that in emerging and frontier markets, especially those facing major infrastructure gaps, partnerships are the foundation of meaningful trade reform.”

He saw this truth in action in 2024, when he met the CEO and board of a multilateral financial institution alongside his agency’s department head. Together, they shared deal pipelines and collaborated on a green and sustainable infrastructure workshop and, by doing this, their two agencies were able to catalyze interest and investment in projects that enhance trade.

Gaining a globally recognized credential while broadening his network

Alongside his vast knowledge and 15 years of experience in trade, Joshua decided to pursue his Certified International Trade Professional (CITP®|FIBP®) designation for two reasons:

“The CITP designation demonstrates to stakeholders that I have been certified by a globally recognized institution. I am also interested in networking with CITP designation holders to broaden my contact database and facilitate stronger trade connections.”

When he earned the designation, he was eager to share the news. “I was delighted,” he says, adding, “I immediately announced to my family, friends and colleagues, and to my contacts on LinkedIn.”

“This is my first professional qualification, and one that I will treasure. The CITP certifies me for such important skills as ethics and professionalism required to practice at the highest level.”

Opening new doors in global leadership

Looking ahead, Joshua sees the CITP playing a critical role in his long-term aspirations. Hoping to serve on boards of international entities, he feels “the CITP ratifies my capacity to fulfil high-level international trade responsibilities across the world.”

As he continues shaping U.S.–Africa trade frameworks, building infrastructure partnerships, and strengthening West Africa’s trade environment, Joshua stands poised to expand his influence even further.

His combination of experience, credibility, and globally recognized certification is already paving the way for great change and opportunities across nations and continents.

The post CITP Spotlight: Joshua Egba — Senior West Africa Representative, U.S. Trade and Development Agency appeared first on Trade Ready.

The WTO’s revised forecasts project modest growth in global trade, driven by easing inflation and interest rates, but caution remains due to geopolitical tensions and unresolved regional conflicts. Emerging markets, particularly in Asia, the Middle East, and South America, are set to lead growth, while advanced economies navigate persistent inflation and evolving supply chain dynamics.

From the potential impact of U.S. trade policies under the incoming Trump presidency, to the continued growth of e-commerce and technological innovations in trade finance, the year promises to reshape global commerce.

Risks such as economic downturn, supply chain disruption, and geopolitical instability create an atmosphere that highlights the need for agility, adaptability, and diversification in 2025.

Read on for our 10 2025 trends.

Curious about our past predictions? Check out what we thought 2017-2024 had in store.

• 10 global trade trends we’ll be watching in 2024
• 10 global trade trends we’ll be watching in 2023 
• 10 global trade trends we’ll be watching in 2022 
• 10 global trade trends we’ll be watching in 2021 
• 10 global trade trends we’ll be watching in 2020
• 10 global trade trends we’ll be watching in 2019
• 10 global trade trends we’ll be watching in 2018
• 10 global trade trends we’ll be watching in 2017

1. Global trade growth expected amidst transition and uncertainty

In October 2024, the WTO released their revised global trade outlook for the remainder of 2024, and looking ahead at 2025. In it they increased the growth forecast for world merchandise trade in 2025 by 0.3% from the previous estimate, bringing it to 3.3%.

The WTO clearly pointed out that the risks to this forecast were for growth to be slower, rather than higher. Meaning that uncertainty in geopolitical tensions, policy (this was before the results to the U.S. federal election were known), and regional conflicts could end up reducing growth, despite the predicted increase.

However, the WTO does see gradual trade recovery continuing in 2025 among declining inflation and therefore lowering interest rates, which generally stimulate consumer spending and investment.

Overall, it looks like 2025 will be another active and transitional year for trade.

2. Stubborn inflation and uncertainty in 2025 global economic outlook

Global inflation is slowly coming down from the global peak of 9.4% in 2022 during the pandemic. The global inflation rate is expected to come in around 4% during 2025 according to the IMF.

Most of the advanced economies will come in under 2% in 2025, with developing economies averaging just under 6%.

The major central banks including the Federal Reserve, Bank of England, Bank of Canada, and the European Central Bank are all expected to continue to ease their interest rates over the course of 2025.

While the supply chain disruptions that brought inflation up to its 2022 high have mostly been resolved, new risks remain in play, as we’ll discuss in more detail later in this article. The above-mentioned geopolitical and trade tensions could have an upwards impact on inflation as well.

Modest growth is the overall prediction when it comes to the global economy in the year ahead, particularly in emerging markets. The caveat being that challenges remain, and there is still a significant amount of transition and uncertainty in the global environment that throws risk at any solid economic prediction.

3. Enhanced customer service in e-commerce delivery

The pandemic accelerated a shift in consumer behaviour, driving widespread adoption of e-commerce, particularly for “big and bulky” items like furniture and appliances. Today, online shopping continues to dominate with consumers expecting streamlined delivery experiences, including real-time tracking, timely scheduling, and exceptional service.

For retailers, delivery is no longer just about price but providing seamless customer experiences. This trend has intensified competition, especially as giants like Walmart and Amazon are projected to dominate 60% of online retail by 2027, prompting smaller retailers to prioritize affordability, speed, and personalized service.

Technological integration is key, and many retailers are bringing in platforms and tools that can enable real-time visibility, automated operations, and flexible scaling for peak periods. Companies are also enhancing services, such as pre-assembly and installation, to meet evolving consumer expectations. However, challenges remain, including rising operational costs, workforce shortages, and the need for advanced supply chain solutions.

Despite hurdles, the last-mile delivery market is poised for growth, driven by increasing online sales of bulky goods. Companies focusing on consumer trust, technological innovation, and efficient operations are likely to thrive in this competitive landscape.

4. Threats of supply chain disruptions continue in 2025

Many of the supply chain disruptions that plagued shippers throughout 2024 continue to threaten operations into 2025, including Red Sea diversions, the risk of labour disruptions, and tariff threats. This means fluctuating demand and high rates are likely for the year ahead.

To mitigate the risk of delays and disruption companies are turning to “frontloading”, filling their warehouses early to ensure they have access to the inventory they need to serve their customers, ahead of any incoming tariffs.

Canada just weathered a difficult holiday season with the Canada Post strike impacting deliveries during peak season. This labour disruption is estimated to have cost more than $1billion dollars in damages to small Canadian businesses, according to the Canadian Federation of Independent Business.

In the U.S., the USMX – the union representing container shipping lines and port operators along the East and Gulf Coast ports – are currently on a short-term contract extension that is set to expire on January 15, 2025. If they fail to reach an agreement with the International Longshorement’s Association (ILA), any resulting labour action could disrupt almost 50% of U.S. ocean freight volumes.

Between political, environmental, and labour disruptions, things remain uncertain in the international supply chain industry in 2025.

5. Trade Wars & Tariffs & Trump

Donald Trump’s second presidential term may bring significant changes to global trade policy, including increased tariffs and retaliatory measures. These actions are expected to heighten global economic uncertainty, disrupt supply chains, and strain international trade relationships. Analysts predict tariffs could be used as leverage in negotiations on issues like immigration and foreign currency policies.

Europe, already grappling with internal political challenges, faces particular risk with U.S. tariffs. These measures could reduce European exports, hamper economic growth, and complicate efforts to stabilize the eurozone economy.

China, a primary target of U.S. trade policies, may retaliate by targeting American agricultural exports and diversifying its trade relationships. Countries like Mexico and Vietnam could benefit as companies seek alternative supply chain locations.

U.S. corporations dependent on global supply chains are preparing for potential disruptions, while economists warn of unintended consequences, including higher consumer costs and distorted production networks.

The possibility of widespread retaliatory measures raises fears of a global trade war, with Europe, China, and North America among the most affected regions. But going into the start of 2025, it remains uncertain whether Trump will follow through on these threatened tariffs and to what degree.

6. Digital transformation in trade finance technology

Despite an incredible amount of work being done, the digital transformation of trade finance is a slow process. The complexity involved in creating and standardizing policy, regulations, systems, and languages presents enormous challenges. But progress continues to be made.

According to Euromoney, major financial institutions including DBS, ING, Lloyd’s and Santander are seeing 30-70% of trade transactions initiated digitally.

Among TradeReady’s most-read articles of 2024 were 2 articles focused on TradeTech and electronic trade documentation. So we know this is a topic to keep up with in 2025.

We’ll be checking in with CITP Craig Atkinson, an active member of the WEF’s TradeTech community, throughout the year for further developments in digital tools that will help businesses trade more easily, effectively, and efficiently.

7. Growing focus on skills-based hiring and retention in global trade roles

“Skills-based hiring”, or hiring based on evidence of a candidate’s specific skills rather than years of experience or formal education, has been a growing trend since the term was first coined back in 2012.

The upsides include a decrease in turnover, reduction in training time and cost, increased productivity, and universality (a more standardized process of finding a vetting candidates makes hiring easier and increases inclusivity).

For international trade roles especially, the complexity and specificity of skills needed to successfully complete trade transactions and processes makes this hiring strategy particularly useful.

And this trend is growing worldwide:

• This study found that 79% of companies now look for skills when hiring, vs. 21% that prioritize experience and education.
• Between 2017 and 2019, 46% of middle-skill and 31% of high-skill jobs moved away from requiring job applicants to have a formal college education.
• In India, where 50% of recruiters use skills as a key factor when searching for candidates, skills-based hiring is also on the rise.
• In 2022 the US government released new guidelines on applying a skills-based approach to hiring for federal positions.

In 2025, “right-skilling” will be a top trend in talent acquisition as companies continue to focus more on finding the right people for the job, rather than the right degree, or years of experience.

Secure, verifiable digital credentials will continue to play a key role in the finding and hiring of individuals with the right skills to do the job in the year ahead.

8. Regional trade growth

In 2025, global trade growth is projected to be led by emerging markets in Asia, the Middle East, South America and the CIS region. As a result of expected incoming tariffs for goods entering the U.S. market from major trading partners like China, many companies are looking for new manufacturing locations. This could continue to benefit other manufacturing regions like Vietnam.

Overall, according to the World Bank and the World Trade Organization (WTO), global trade is expected to increase in 2025, with the following regional trade forecasts:

• Asia: The fastest growing region for exports and imports, with a 4.7% increase in exports and a 5.1% increase in imports
• Middle East: The fastest growing region for imports, with a 9.0% increase
• South America: A 4.6% increase in exports and a 5.6% increase in imports, but a small decline in exports (-0.1%)
• CIS region: A 4.5% increase in exports and a 1.1% increase in imports
• Africa: A 2.5% increase in exports and a 1.0% increase in imports
• North America: A 2.1% increase in exports and a 3.3% increase in imports
• Europe: A -1.4% increase in exports and a -2.3% increase in imports

Friendshoring, nearshoring, and supply chain diversification will likely continue to transform global value chains in the year ahead.

9. WEF’s top 10 global risks

The World Economic Forum puts together an annual list of the most urgent global risks that organizations face in its Global Risks Report. As we await the release of the 2025 report in January, we can expect a continuation of many of the risks expected to be forefront in the time period of 2024-2026 listed in last year’s report.

These risks included, in descending order:

1. Misinformation and disinformation
2. Extreme weather events
3. Societal polarization
4. Cyber insecurity
5. Interstate armed conflict
6. Lack of economic opportunity
7. Inflation
8. Involuntary migration
9. Economic downturn
10. Pollution

As you peruse the list, you’ll see that several of them are already included in the top international trade trends we’ll be watching in the year ahead. We’ll be ready for updates in January.

10. AI use-cases for trade activities

Artificial intelligence is ubiquitous, groundbreaking, a timesaving gamechanger, a cybersecurity and intellectual property nightmare, it’s good, it’s bad, it’s ugly. It’s everywhere. And it’s certainly not going away in 2025, despite some backlash.

Within the international trade environment we’ll be following along with AI developments and use cases in the following areas:

• AI in hiring processes
• AI in supply chain visibility
• AI in supply chain management & sustainability
• AI in customs & documentation
• AI in inventory management
• AI in demand forecasting
• AI in trade finance

The post 10 global trade trends we’ll be watching in 2025 appeared first on Trade Ready.

International business could not be possible without translators and interpreters. In all its forms and sizes, good business runs on effective communication. Translators and interpreters are the key to bridging cultural and linguistic gaps, as well as making international business and trade possible since ancient times.

Professional translation services and interpretation services can ultimately help you uncover hidden potentials in foreign markets. By working with them, you can also inundate yourself with the knowledge they can offer you as a means of self-improvement as a businessperson.

What makes a professional business translator and interpreter

Having bilingual or multilingual abilities alone won’t automatically make you a language professional. You need to possess advanced language skills obtained by years of extensive study and even cultural immersion in the country of your chosen language.

Both translators and interpreters need to decide early on during their studies what language pair specialization they want to pursue, such as English to Spanish, English to Chinese, etc. Clients should often look for language professionals with a specialization, as a language professional with one or two language pairs is bound to be more dependable than a ‘jack-of-all-trades but master at none’.

While being either a language professional is hard enough, more can be said for professional business translators and interpreters. Aside from advanced language skills, they need to have the right background knowledge in financial and legal terminology since business documents and proceedings are often peppered with it. They can also choose to specialize in certain industries, such as banking, automotive, gaming, retail, tech, gaming, etc.

Now what obviously marks the difference between a translator and interpreter is their work environment and skillset application. They’re often labelled interchangeably but there are very different from each other. Translators mainly work on documents while interpreters perform live language translation.

Additionally, translators have on-site resources to aid their translation work. Interpreters can only rely on their knowledge and experience as their resource. With this in mind, not all translators can become interpreters. They need to develop cross-cultural communication skills and have the ability to handle immense pressure and remain cool in situations where even a single mistranslation can prove disastrous.

Where to get the right professional translation and interpretation services?

Some major international businesses regularly rely on their in-house business translators and interpreters. But that’s not an asset that many small to medium enterprises can employ full-time on standby.

Instead, freelancers are often used, who handle specialized and project-based translation and interpretation jobs when businesses lack in-house options. Even big-name brands rely on freelance language professionals from time to time.

When it comes to hiring a freelance translator or interpreter, your best route to contact them is from a professional translation agency. Despite their name, they provide both professional translation services and professional interpretation services. You can tap language professionals from major freelancing sites such as Upwork and Fiverr, but the trick is ensuring consistent and reliable outputs from your freelancer.

Professional translation agencies already have a pool of translators and interpreters working anywhere around the world. When it comes to projects with urgent deadlines, a professional translation agency can get a team for you to get the job done. Another advantage is that if one of them calls in sick or has an emergency, the agency can immediately tap into the next person to continue the job.

The international business arena is dynamic, and a lot of unforeseen things can pop up at the last minute. With that in mind, it would be better to rely on an agency that has global networks and a sufficient pool of highly qualified language professionals. Since business communication is very sensitive work, never rely on a free online language translator such as Google Translate. Even a single typo or mistranslation can jeopardize your documents.

How professional translators and interpreters are crucial in international business

International business lives and breathes on seamless communication. As said in the beginning, this is as relevant in the past for thousands of years as it is today. Here’s a list of a few critical areas where you’ll be needing professional translators and interpreters.

1. Local legislature and financial documents

Whether as a private individual or as a public official, you need to know the lay of the land first. Translating legal documents and financial documents requires different expertise, and you’ll often need at least two translators. As for interpreters, perhaps you’ll need two as well, depending on the situation at hand.

2. Multilingual contracts

This is an unavoidable part in international business. The majority of your multilingual business contracts will be handled by your professional translator. But during on-site meetings, you can’t depend on your translator to settle any clarifications. For that, your professional interpreter’s background knowledge in financial and legal terminology in both language pairs will prove indispensable to you.

3. Securing foreign investments and funding

When startups and businesses look to secure more financing options, they usually go abroad. Whether from foreign banks or foreign private investors, your translator will get all your documents. Your interpreter will then take care of on-site matters.

4. Negotiating with foreign partners and suppliers

Depending on your business, you might have to get in touch with foreign partners and suppliers. Your translator will take care of technical and financial documents, while your interpreter will handle on-site negotiations and even informal communication.

5. Connecting with foreign partners

Negotiating and connecting are two very different things. While negotiations are a formal aspect of any business, connections are more concerned with the informal and personal side of business.

Many international business cultures greatly value how you conduct yourself in their environment in terms of foreign business customs and etiquette. Naturally, your interpreter will have all of these taken care of. But it also pays off to know even the basics of their customs and etiquette.

Top business languages other than English

1. Chinese (Mandarin)

Mandarin is the most spoken language in the world with over 900 million speakers. It’s also a highly lucrative business language. A huge number of Chinese businesses are looking for opportunities abroad and you can capitalize on that trend. Global businesses are also reaching out to the vast market opportunities that mainland China commands.

2. Japanese

Japanese industries are major players in the global economy in all industries. Thus, having dealings with a Japanese business could be one of your options as their sophisticated homegrown industries are hard to ignore. You will need to have a professional Japanese translator on hand to specifically handle a different version of Japanese called keigo. This is a formal Japanese speech used in business, the government, and even in retail that even native Japanese people have trouble with.

3. Korean

Another major Asian economic player is South Korea. Just like Japan, Korean industries are also a major player in the world market. Korean brands are key players, particularly in the automotive, technology, and electronics industry. As with Japan, you must ensure that your professional Korean interpreter is adept with business Korean.

4. German

German is often characterized as a quintessentially business-oriented language. You can perhaps see the connection since Germany has the highest GDP in Europe. Depending on your business goals, reaching out to German businesses might be your first step if you want to establish your business contacts in mainland Europe.

5. Spanish

Compared to other European languages, Spanish is one of the most spoken languages in the world. It is spoken in the European continent and much of the Americas, both north and south. Keep in mind that each Spanish country is linguistically, culturally, and socially unique from each other.

The Hispanosphere is vast, and each country is bound to have its own way of doing things. So, when hiring a professional Spanish translator and interpreter, make sure that their Spanish proficiency and knowledge match with your target country.

These countries and their languages were chosen because of their economic development and strength of their industries. You can also take your chances in emerging economies such as the ASEAN region, select African countries, and select Latin American countries as well.

What you can learn from language professionals

The key to growing as a business is to keep learning as you go along in your career. Whether as a CEO or a business representative, having an open mind is what will set you apart from your competition. You can learn a great deal from the translators and interpreters with whom you associate.

Sure, they’re only with you when you need them under specific times. But that doesn’t mean you ought not to learn anything from them. Learning languages is more than just aiming for linguistic proficiency. It’s also learning about cultures and their way of life.

You become more culturally aware of the diverse ways of doing things around the world. You can use this perspective to inevitably help you as time goes along. The globalized economy we live in today is becoming more competitive with each passing day. All in all, an international perspective is what will ultimately unlock more market opportunities for you.

The post Access new market opportunities by hiring translators and interpreters appeared first on Trade Ready.

Manufacturing is a key part of many national economies. However, certain nations, such as China, are known for having significantly stronger manufacturing sectors than most countries. In recent years, however, China’s manufacturing sector has been declining due to rising labor costs, the ongoing trade war with America, and a trend towards high-tech manufacturing jobs. This means that many companies are searching for new countries to which they can move their low-skill and low-cost manufacturing.

Here is a list of the top four countries that are picking up China’s manufacturing slack and will be major manufacturing hubs in the near future.

1. India

India is a country that is largely known for its software creation and its call centers. However, manufacturing has been steadily increasing there recently, largely due to Prime Minister Narendra Modi’s recently launched “Make in India” program that is helping to attract a large amount of foreign interest. The goals of this program are to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best-in-class manufacturing infrastructure.

This program is part of a larger strategy to make it easy to do business in the country. This strategy has advanced manufacturing so much in India that the country is projected to by one of the top five manufacturing hubs for the world by the end of 2020. India’s manufacturing sector is currently growing by about 8% per year. It is attracting luxury brands, smartphone makers, automobile companies, and many more to conduct manufacturing in the nation. India could very well be the next China.

2. Vietnam

Vietnam has one of the fastest merchandise exports growth rates of any Asian country. In fact, between 2005 and 2013, merchandise exports increased by 20%. Considering that many companies that once used China for manufacturing are seeking out cheaper and more reliable alternatives in Asia, Vietnam could benefit substantially.

Vietnam is close to China and also borders the South China Sea, which connects to the Pacific Ocean. This means that shipping from Vietnamese countries is extremely feasible. This is desirable for companies that want to manufacture products in Vietnam and then have the products shipped to places like the United States and Canada.

In addition to its good location, Vietnam’s government has also been working hard to make business conditions favorable in the nation. It has been doing this by providing universal healthcare and job skills training, improving education, and developing infrastructure. Vietnam also has a stable political climate, which is favorable for business. All of these factors mean that there is a very good chance that more and more companies will outsource manufacturing to Vietnamese companies in the coming years.

3. Indonesia

Indonesia’s manufacturing has been growing by five percent for the last few years. Manufacturing now makes up about 25 percent of the country’s GDP. Additionally, Indonesia’s population has been growing steadily in recent years as well. The country now has about 240 million people.

Indonesia currently has some major infrastructure issues and needs to its power stations and grid, water sanitation systems, roads, seaports, airports, and urban transportation. This is especially true now that Indonesia is seeing larger percentages of its citizens migrating to urban areas.

The government has started to invest hundreds of billions of dollars into infrastructure development. So, this is encouraging. But there is a lot of room for improvement. However, if Indonesia can fix its infrastructure issues, then even more companies could outsource manufacturing to this nation. The low cost of labor, proximity to the Pacific Ocean, and relatively stable political climate are all very attractive to companies who need manufacturing. All of these things mean that Indonesia could soon become another Asian powerhouse of manufacturing.

Competition with India and Vietnam will be strong, so the country has its work cut out for it. But considering vast quantities of companies, including Apple, Nintendo, and HP, are all looking to move at least part of their manufacturing out of China, Indonesia could be one of the key beneficiaries of this mass exodus. The protracted U.S./China trade war, tariffs, and China’s rising labor costs are forcing companies to seek manufacturing outside of China. Indonesia could be where many companies including large tech companies end up setting up new manufacturing operations.

4. Singapore

Despite the fact that Singapore is a small nation and is only about 31 miles wide at its widest point, the nation has a strong manufacturing sector that has continued to grow in recent years. In fact, during 2018, Singapore’s manufacturing sector grew by roughly ten percent. Manufacturing is Singapore’s fastest-growing business sector.

The product categories that are leading the manufacturing charge in Singapore are electronics, biomedical, and transport engineering. Other key reasons why Singapore’s manufacturing sector is increasing include the fact that the country has excellent infrastructure and is very stable politically. These factors help to make businesses feel comfortable launching manufacturing operations in the nation. The political stability of Singapore gives the country an advantage over places like Thailand, which is experiencing major political uncertainty at the moment.

Singapore is yet another Asian nation that could benefit from the decline of China’s manufacturing dominance. Singapore is somewhat limited by its size. However, many companies will most likely seek to conduct manufacturing in Singapore because of all the advantages it provides.

The manufacturing map will continue to change rapidly in the coming years

After decades of consistent growth and a meteoric rise to become the world’s biggest manufacturing powerhouse, China is starting to face a lot of difficulties in its manufacturing sector. Companies are fleeing the nation rapidly and are quickly seeking low-cost alternatives. India, Vietnam, Indonesia, and Singapore will all likely benefit tremendously from this situation and see continued manufacturing growth as a result.

However, as these nations see their manufacturing increase, they will most likely have to deal with many of the issues that China is facing right now, such as rampant pollution, increasing salaries, and potentially even protracted trade wars with the United States. China is going to be forced to adapt to the fact that it is becoming an increasingly unpopular place to manufacture goods. Meanwhile, India, Indonesia, Vietnam, and Singapore can all enjoy the fruits of their hard work and watch foreign investment continue and their manufacturing sectors to increase year after year as long as this trend continues.

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To forge an international business, you must overcome various obstacles. There’s the initial idea, the funding, the tricky startup phase, the growth into a regional power, and then the complex move to cross-border operation. But since none of those achievements is ever guaranteed, you can’t rely on a prospective global move being simple (or even successful).

Consider that few businesses ever attempt it, and many fewer actually accomplish it in a sustainable fashion. It’s a daunting prospect. That said, if you’ve already started getting results in at least one additional country, why not see how far you can take your business? It may be tough, but it’s doable, particularly if you get your approach right.

How do you get your approach right? Well, one thing that’s essential is that you refrain from thinking globally. Instead of getting bigger, your focus needs to get smaller. Allow me to explain why this is, and what it means for the future of your business.

Overreaching is dangerous

Even one small step in a global expansion takes a lot of planning to be managed effectively. This is vital to note because it’s easy to get carried away with the potential of your business and to start looking past the roadblocks ahead of you. As noted, you’ve already made it to international business, and you know your operational model works. Why shouldn’t you be confident?

As a result, you might simply assume that everything ahead of you is smooth sailing (nothing you haven’t already dealt with). When you give all your attention to long-term goals, you leave yourself extremely vulnerable to making basic errors. What you need to do is lay out a path of modest steps, and take each step one at a time, never committing too much thought to the end goal.

Prospects need the personal approach

You’ve already had some success moving into a new country, but there’s every chance that your international move was into a country bordering (or similar to) your domestic market. Because of this, you might have treated the new market just like your original market and still been able to get results. This is anomalous on a global scale.

When you really start to look into different markets, thinking about them individually instead of collectively, you can see just how significantly customer requirements and expectations can differ. A polite message in one country could be considered an insult in another, for instance, and a product that captures the zeitgeist in one area might sink without trace in another.

Some of the world’s largest markets, like India, are so diverse that they also contain significant cultural differences from one region to the next, requiring even more detailed research and customization.

Only by thoroughly researching the culture of each new market can you understand how best to approach its average consumer. And with your company going global, the last thing you need is to see your reputation take a hit because of a cultural faux pas.

Your workers are mission-critical

How much crunch did it take to get where you are now? How many employees had to put in extra hours and neglect their personal lives to achieve international-level growth? While there’s nothing wrong with everyone working hard to grow a business, the grind catches up to you, and can only prove effective for so long.

There’s a quote that I think is relevant here, courtesy of entrepreneur Tom Shieh on the Marketing Speak podcast: “What got us here isn’t necessarily going to take us to the next level.” While you certainly need to preserve the qualities of your business that made it so popular, you don’t need to cling to your old ways of doing things — particularly when they aren’t sustainable.

Consequently, you must ensure that your employees (whether they’re domestic or overseas, because you’ll be hiring a lot of overseas workers and they’re just as important) are content in their positions, with suitable benefits and perks that make them brand advocates. You should be hiring for your weaknesses and investing in those employees so they’re even more valuable in the future, not thinking about the short term by expecting too much of them.

Efficiency is vital at the global level

Think about all the minor things that affect the day-to-day workings of a business: the procedures, protocols, routines and tools that add up to produce your regular output. When your head is in the clouds contemplating global dominance, those things might seem trivial — but they’re actually more important than ever when you reach that level.

Why? Because a minor efficiency improvement might not mean much for a small business, but when it’s deployed for a global business, it can save a lot of time and money. Suppose there was a way to automate one of the daily tasks assigned to almost every employee you have, for instance: something that saved the average worker 30 minutes each month could add up to a huge sum each year, making it a matter of priority.

What’s more, your underlying system needs to be as easy to use as possible if it’s going to be rolled out to workers who live in different countries and speak different languages. Strive for absolute minimalism, cutting down on confusion, tweaking themes to suit regional needs, and ensuring that the onboarding process is as easy as possible.

You don’t create a global business by thinking globally. You do it by thinking locally, then applying that formula to every distinct region. Treating the world as a singular market is one of the biggest mistakes you can make — think small if you want to succeed.

The post Why international businesses need to think small to go global appeared first on Trade Ready.

Once considered the “Sick man of Asia” in the later stages of the 20^th century, the Philippines has undergone a rapid economic transformation in recent years. With high growth rates, an expanding middle-class, and ambitious public policy initiatives geared toward national economic development, it appears this dynamic, newly-industrialized market is finally on a path toward sustainable growth and stability as it emerges into one of the Asia-Pacific’s most attractive trade and investment destinations.

The economic climate

Currently the world’s 34^th largest economy, the Philippines is among the world’s fastest growing markets. GDP growth rates averaged 6.3 percent between 2010 and 2018, and are projected to grow faster than other neighbouring South-East Asian countries over the next 15 years. In fact, an HSBC forecast predicts the country could enter the world’s top 20 economies in the next quarter century if demographic trends and sound governance remain in place. Consequently, the high growth environment has also been largely responsible for greater investor confidence. Foreign direct investment inflows hit a record-high USD $9.5 billion in 2017, exceeding the Central Bank’s target of USD $8 billion.

In addition to an upward economic transformation, the Philippines offers a number of competitive advantages for prospective business ventures in Asia, including:

• A large, growing population of 106 million people
• An emerging middle-class consumer market
• A highly-skilled, low-cost, English-speaking labour force
• A strategic proximity to neighbouring markets.

The importance of service sectors

While the Philippines remains a large agricultural economy, service sectors have been a major factor in domestic growth and rising income levels. More than half of the country’s labour force is now employed in the service industry – accounting for nearly 60 percent of the overall GDP.  Three industries are particularly noteworthy:

• Business process outsourcing (BPO) has flourished throughout the country’s urban centres and is poised to directly employ up to 1.5 million Filipinos by 2020 with a total income revenue of over USD $50 billion.
• Overseas Filipino Workers (OFWs) continue to be a major contributor to economic well-being. Official figures show 2.3 million Filipinos employed abroad – almost all of whom repatriate income earned overseas to loved ones back home. Inward remittances from OFWs hit a record high USD $32 billion in 2018, giving a boost to domestic consumer spending.
• Tourism accounted for a 12.7 percent share of the overall GDP in 2018. Increasing domestic travel and a record-high 110 million visitors from abroad has helped create a USD $40 billion industry, employing 5.4 million Filipinos.

The environment for Canadian exporters

As Canada’s 28^th largest trade partner, the Philippines presents significant growth opportunities throughout a broad range of sectors. Trends have shown encouraging signs for Canadian exporters with total merchandise exports increasing from USD $511 million in 2014 to USD $753 million in 2018  – most notably in the following products:

• Aircraft and Parts ($129 million USD)
• Lumber and Wood ($122 million USD)
• Frozen Meat ($102 million USD)
• Copper Ores ($70 million USD)
• Wheat ($56 million USD)

Canadian companies of all sizes that specialize in renewable/clean energies, infrastructure, and ICT sectors may also take advantage of upward trends and policy initiatives – particularly outside of the National Capital Region of Manila, as economic activity becomes increasingly redistributed through the country.

Exploratory talks toward a Canada-Philippines free trade agreement have since evolved to rein the remaining six non-CPTPP ASEAN member states into a multilateral Canada-ASEAN FTA. Per Canada’s current trade diversification policy, this option appears to be the inevitable path. In the meantime, Canadian firms doing business in the Philippines can take advantage of an existing reciprocal tax treaty and a foreign investment protection agreement (FIPA).

The Canada-Philippines relationship

Despite the 2019 diplomatic dispute over the repatriation of waste-filled containers from Manila to Canada, the two countries enjoy a strong and resilient bilateral relationship. The Philippines became Canada’s largest source of immigration throughout the latter half of the last decade, with Tagalog becoming Canada’s fastest growing language. As of 2019, 900,000 residents of Canada – comprising 2.6 percent of the population, are of Filipino descent. Conversely, a record-high 250,000 Canadian tourists are projected to visit the Philippines by the end of 2019.

Filipinos view Canada and Canadians very positively. Businesspeople can expect nothing less than VIP treatment, friendly smiles, and genuine hospitality, for which Filipinos are world-renowned. As with many non-Western business cultures, establishing trust and personal relationships is important. Visitors will likely encounter questions about their relationship status, good-natured comments about personal appearance, or if you are friends with their cousin living in Edmonton!

Overcoming challenges and the way forward

Although the Philippines is emerging as a rising star in the global economy, the country continues to rank low on ease of doing business. As such, companies will inevitably have to surmount considerable challenges to achieve success, including:

• Poor quality and lack of infrastructure
• Corruption among public officials at all administrative levels
• A complex, inefficient bureaucracy

Recent reforms and initiatives launched by the current administration under President Rodrigo Duterte have made inroads into reducing burdensome red-tape and eradicating institutional corruption, particularly within the Bureau of Customs and Bureau of Internal Revenue. However, significant work remains.

The Duterte administration has also committed USD $153 billion toward an ambitious national infrastructure plan that would increase investment from 6 percent of GDP in 2018 to 7.4 percent by 2022. More than 70 priority projects have been earmarked, including airports, railways, public transit networks, bridges, highways, and energy-producing facilities.

Of note, foreign companies and individuals are constitutionally prohibited from purchasing land anywhere in the Philippines. They may, however, seek a 50-year land-lease agreement that can be renewed for an additional 25 years.

Getting support for entering the Philippines market

As with any prospective venture into a new market, companies and investors must conduct intensive research, perform due diligence with any potential partners, and be acutely aware of local laws and regulations that may pose barriers to doing business.

The Canadian Trade Commissioner Service is an invaluable resource to assist companies with finding opportunities throughout many sectors. The TCS provides matchmaking services through an extensive list of reliable agents, distributors, local partners, etc., while their practical market knowledge is second to none. Trade Commissioners based in both Ottawa and at the Embassy in Manila should be every Canadian company’s first point of contact.

Exporters can mitigate several risks by obtaining the service of Export Development Canada, bearing in mind the distance and geographic trajectory when shipping products from Canada to the Philippines, and the risk of non-payment if using open terms. EDC provides exporters with a suite of insurance products that should be strongly considered to safeguard against the risks involved.

Membership in business organizations are also highly beneficial for networking opportunities, acquiring market knowledge, and participating in trade shows. Companies and individuals across all sectors can join organizations such as the Canada-Philippines Business Council and the Canadian Chamber of Commerce in Manila to seek advantageous insider knowledge and to make valuable connections.

High risk, high reward

Sadly, the Philippines continues to be characterized by negatives – a country plagued by rampant corruption, extreme poverty, and severe overpopulation. Add in extrajudicial killings, skirmishes with the Chinese naval patrol in the South China Sea, and kidnappings by insurgents to the news cycle, and suddenly a proposed business venture may appear too risky.

Between the lines, however, is a dynamic, forward-moving, emerging market with an abundance of opportunity that awaits. The Philippines is currently experiencing an unprecedented transition and is on its way to becoming an influential and powerful Asian economy in the 21^st century. Canadian companies ought to act on this opportunity, bearing in mind that even without an existing free trade agreement, a coherent business strategy in a complex and unfamiliar market is the golden ticket toward success.

The post Learn why Canadian exporters should capitalize on increasing opportunities in the Philippines appeared first on Trade Ready.

Most domestic businesses, at some point, nurture dreams of selling into several overseas markets across the world. At face value, such dreams are extremely valid.

Canada is, after all, a first-class economy built on trade, with 30% of its GDP directly connected to its ability to send goods and services around the world.

Trade unleashes vibrant economic activities and creates jobs; it makes companies competitive, fosters organic growth, and delivers outstanding corporate results to stakeholders.

Available World Bank statistics support the notion that trade is the engine room of Canada’s economy, and that Canadian companies that export tend to fare much better than those that don’t.

Canadian businesses aren’t as global as we think

However, what those statistics usually fail to highlight is a fundamental defect in the structure of our trade: 75% of all Canadian exports destined for the U.S. market.

Invariably, roughly 8 of every 10 vessels laden with Canadian goods heading overseas will likely dock at a U.S. port. So much for the dream of exporting all over the world.

Proximity plays a huge part in all of this, as well as long standing historical and cultural ties, and a shared loyalty to global supply chain management principles.

A change of mindset post-CUSMA

But the unnerving diplomatic spats surrounding the CUSMA (referred to as USMCA in the U.S.) negotiations and its aftermath has exposed the vulnerable underbelly of Canadian trade, and I believe we should all worry.

I’ve always suspected that if U.S. markets sneezed, Canada could catch cold, and that the after effects may be severe enough to tailspin this economy into a mild recession.

What we never saw coming was the sudden change in the political equation in the game changing U.S. presidential elections on November 8th, 2016, and how it would affect America’s relationship with Canada.

The world changed that night; and the great partnership of equals that had served Canada so well in trade and commerce collapsed under the weight of protectionism.

We should no longer today conduct Canadian trade with the same pre-November 2016 mindset, and must instead reconfigure the balance of trade.

Thanks to CUSMA, the U.S. markets will still be the first choice for our exports for a long time to come, but Canada needs a game changing strategy that puts it firmly back in the driving seat.

Canadian exporters must be encouraged to shake off the overreliance that led to locking down 75% of our exports in one multifaceted regional market, for better or worse.

It’s time to explore new markets – especially emerging markets

A good place to start is with the recent trade agreements inked in Asia and Europe. You can also include India, South America and Africa. Target ramping up trade in the emerging markets by 20 – 30% over the next 5 years.

Canadian companies should start playing to their global reputational strengths by becoming dominant players in markets where guarded risks give way to decent returns.

It is said that the spirit of enterprise plus a flair for adventure penetrates new markets, as seen with American, European and Chinese enterprises, but Canada needs to play catch up.

It is a big plus that in terms of perception of quality, Canadian standards are arguably the most highly regarded in the world. Take our educational standards as a base case.

It is no mere coincidence that each year our schools attract thousands of overseas students. This trend creates a real boom for several small and medium enterprises providing marketing and logistics services to help schools acquire these students and help them succeed in Canada.

These overseas students become Canadian-trained professionals and then go back home after graduation with knowledge of the Canadian market and a positive view of Canada, dotting the business landscape of their home countries. While many Canadian businesses could identify, accelerate or execute more entry strategies to these markets with the help of these professionals, this incredible resource is sorely underutilized by Canadian businesses.

Indeed, Canadian small enterprises have so much to offer the emerging market world in ICT, energy, agriculture, mining, manufacturing, health & safety, general goods and more.

Many such emerging markets had GDP growth rates above 5% in 2017, (double the U.S. rates), have healthy population and purchasing power dynamics, and posted above 15% p.a average returns.

Fortune favours the bold business

Some might ask, what about risk? Risks are embedded in all export markets, but they can be dimensioned and adequately mitigated to reflect individual risk appetites.

The bigger risk by far is doing nothing to change the lop-sided structure of our trade. Bonding with a close market is good, but Canadian trade needs the energy of new markets.

The post Why Canadian businesses need diversification to survive in today’s economy appeared first on Trade Ready.

The global trade landscape is evolving at a considerable pace, with new developments resulting in both challenges and opportunities for banks and businesses across the world.

A number of factors are at play that are contributing to this, but undoubtedly, a key influencer is the rapid advancement of emerging economies. This is particularly true of the Asia Pacific region, with Latin American markets also gaining prominence as global commerce has become more integrated.

China has been at the forefront of this transformation, growing at a phenomenal rate in a short period of time, and coming to dominate world trade in terms of the volume of goods shipped and delivered. What’s more, as China evolves to become a middle market economy, trade dynamics are evolving yet further as it begins to shift its focus to consumption and the production of higher value goods, such as jet engine components and LED screens. In turn, the manufacture of cheaper goods that has traditionally been associated with China is now increasingly moving towards markets including Indonesia, Bangladesh and Vietnam.

The network of new trade corridors resulting from these economic shifts means that today’s global economy is more interconnected and interdependent than ever before.

Lower trade tariff barriers and advances in transportation and communication have supported the spread of global value chains, while the fragmentation of production processes has helped to boost trade growth, as components cross borders multiple times.

Of course, the global trade community is also facing numerous challenges, including the rising trend for protectionism, which is a significant barrier to trade. The U.S.’s stance towards anti-globalisation in particular, has spurred free trade advocates across the globe to examine new deals to reinforce global commerce and safeguard exports.

It is clear that we are no longer seeing the same levels of world trade growth as in the two decades preceding the financial crisis. These levels were inevitably going to trail off due to being fuelled by “one off” factors, including the rapid growth of the Chinese economy since joining the WTO in 2001, and the reintegration of the Communist bloc into the world economy. However, crucially, global trade remains a dynamic economic force with significant inter- and intra-regional opportunities for businesses to capitalise upon.

Harnessing supply chain data

Alongside the changes to the physical supply chain, technology is also playing a crucial role in paving the trade landscape we see today. New capabilities are coming to the fore and presenting the opportunity to enhance existing processes across the trade finance spectrum.

Advancements include documentation exchange and approval, harnessing rich data sets through analytics to unlock value throughout the supply chain, and the adoption of common documentation standards to help ease the passage of goods and services across the globe.

What’s more, the technology emerging around transparency and access to information is helping banks to equip clients with tools to manage their trade flows and accounts payable and receivable far more effectively than before.

Fintech advancements streamlining global transactions

Trade finance is increasingly becoming a data-led, data management business – and data could be extremely valuable with regard to improving the ease of doing business. Creating technology platforms for use by trusted user groups could facilitate the interchange of trade data and information, providing resources that can be shared and used by different participants in the supply chain to enhance existing processes. This is certainly an area where all participants could leverage technology and stand to gain significant benefits.

Developments are underway in this respect. Singapore-based CCRManager, for example, recently announced the launch of an electronic platform for secondary market trading. The platform supports risk distribution by enabling financial institutions to trade assets more actively and with a broader range of counterparties to help optimise their balance sheets. Of similar note is TradeIX, the world’s first shared platform for trade finance, built using distributed ledger technology and driven using application programming interfaces (APIs).

Shared platforms could also play a vital role in streamlining current processes for identifying and verifying clients by removing the need for multiple banks to duplicate due diligence on the same companies.

This will reduce costs and ensure data integrity, while maintaining the probity and sanctity of the global financial ecosystem. One such example is the Global Legal Entity Identifier (LEI), developed by the International Organization for Standardization (ISO). It connects to key reference data that enables clear identification of legal entities participating in financial transactions, thereby helping to contain market abuse and financial fraud.

Such capabilities could bring considerable value to the world of trade. With tightened regulations in the wake of the financial crisis making client on-boarding costlier and more complex, many banks have been forced to de-risk. This has been a prime contributor to the trade finance gap – which currently stands at US$1.5 trillion according to the Asian Development Bank, and has a detrimental impact on emerging economies and SMEs in particular.

With the long-term global economic trend for continued globalisation, the effect of financing shortages on trade growth is a pressing issue, and ensuring smaller nations and businesses are able to access trade finance is of paramount importance. By harnessing technology, the industry could potentially look to address existing issues to further support business growth and unlock new global trade opportunities.

Banks are beginning to provide the tools cross-border businesses need

In this increasingly complex, far-reaching and digital landscape, it is important that banks are able to provide effective, robust solutions that meet evolving market and client needs. By leveraging new technology capabilities, it is possible to not only enhance the client experience through improved efficiency and transparency, but also utilise data to gain a deeper understanding of clients’ businesses.

Banks can gain insights into clients’ trading patterns and business trends throughout the supply chain, and identify opportunities to nurture and add real value to existing relationships.

Investment into technology innovation can be a challenge for many local and regional banks. However, through local-global correspondent banking partnerships, smaller banks are able to benefit from new technology capabilities without the need for considerable upfront investment.

Such non-compete relationships are powerful means for banks to share expertise and digital solutions, thereby helping to ensure clients are positioned with the tools they need to navigate effectively and grasp trade opportunities to the full. BNY Mellon is a strong advocate of the correspondent banking model, and is investing heavily in its capabilities to help support its banking partners and the global trade landscape.

Technology developments are integral to the success of trade finance, and trade finance has never been more broad reaching and data-led. As global trade continues to evolve, it is by working together that banks can deliver new data-driven solutions, optimise the supply chain, and allow clients to confidently tap into the new opportunities and new corridors on offer in this vibrant, diverse trading landscape.

The post China, anti-globalization and emerging markets – how fintech is facilitating trade in a tough environment appeared first on Trade Ready.

Between 1998 and 2006, I was the international sales director for a small but very rapidly growing tech company. During that period, I opened up 12 international subsidiaries and appointed another 12 master distributors in other countries.

Whilst sales grew exceptionally on the back of this international expansion, our firm had to overcome many local challenges, including complicated tax, regulatory, and operational frameworks, hiring, firing and retaining talent, and the management of multiple service providers worldwide.

Despite these challenges my company went public in 2005, buoyed by this global success. After exiting the company, I reflected on the international success my firm had achieved, particularly on how we were able to successfully enter challenging foreign markets. None of the major international advisory firms wanted to support us because we were too small, and it was so difficult managing multiple local service providers.

Sometimes it felt like I was spending more time managing vendors than I was winning new business.

After looking at a number of new business opportunities I decided that the best use of my experience was to establish an international market entry and expansion firm that was designed to deal with exactly the challenges and opportunities that my own company had faced.

Why a company succeeds or fails in emerging markets

During this journey, I had gained tremendous insights and learned many lessons on the issues that really impact whether a company succeeds or fails internationally. These lessons included truly understanding local cultural nuances, getting to grips with different regulatory and tax frameworks, and knowing who to hire to deal with them.

I had to learn to be wise to where and when a company should establish a local presence in a foreign market.

My journey, whilst ultimately successful, faced some spectacular failures and startling episodes along the way, which I had to overcome. I once arrived several days early to a meeting in Hong Kong only to find our “exclusive” distributor was actually fully representing our main competitor!

Then, there was the time I hired local staff in one of our international markets, only to later realize our appointed GM had hired three of his immediate family members into our local business, but used different surnames for them all. And so the adventure went on!

Ultimately the success or failure of expanding into emerging markets is no different to the recipe you would adopt in your home market. A business needs to have a great product or service which is well-priced and of good quality, and crucially, isn’t immediately replicable, possessing unique some competitive advantage. To sell to and service a customer base, any company needs great people; people who can communicate your company’s value proposition, provide after sales support, and help with the general administration and logistics of cross border trade.

Any company needs to deliver its message locally. Whether this is by establishing a distribution channel, having your own boots on the ground, or leveraging the increasingly important route to market that is ecommerce, companies need to cover all the bases to ensure success.

Online retail sales in India, for example, have risen tenfold in just seven years, from $3.8bn in 2009, to $38bn last year, and yet still this represents only 2.2% of total retail sales in the country.

If you don’t truly understand your new market, you’ll become a cautionary tale

Globalization is often misconstrued as being synonymous with standardization. In fact, localization is most commonly what creates success for SMEs going global.

Whether it be the tweak of a design, the shade of a color, product name, or how it is packaged, these details are more often than not the key to successful market entry.

Consider the following examples:

A British rice cooker manufacturer who succeeds in China – not because they necessarily know a lot about rice, but because they emblazoned the Union Jack on each of their rice cookers accompanied by the slogan “Made in Britain”.

McDonald’s expanded into India, secretly hoping they could convert the local population to become beef-eaters. Several restaurants were burnt to the ground by angry mobs, and would be customers protested outside the remaining restaurants. It took MacDonald’s years before they could respond and finally came up with a localized vegetarian menu – hence the veg Maharaja Mac was born.

Consider the U.S. motor company that introduced a car named the “Matador” in Puerto Rico, only to find out that their bleak sales results were caused by the translation of “matador” to “killer”.

5 ingredients to a successful emerging market strategy

There’s much to be learned from the market entry failures, but put simply, the key ingredients required for achieving success in emerging markets are:

• Avoiding the threat of duplicity;
• Competing in highly price sensitive environments;
• Finding and managing the right sales channels ;
• Recruiting quality talent across multiple time zones and at a great distance, and;
• Genuine localization

There is no quick fix to international success, and a single sales order does not mean that you are an expert exporter. Global expansion requires patience, consistency and long term commitment. If you are planning on expanding in emerging markets, be sure to give all areas of your global business the same focus you would to your business at home.

The post What I learned from 20 years of experience in tough emerging markets appeared first on Trade Ready.

What should you look out for or expect in the international business world in 2018? Let’s take a look and see what could be dominating the headlines you read over the next twelve months.

1. The CPTPP

Though President Trump withdrew the U.S. from the TPP in January, the remaining 11 countries are working to resurrect the deal as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This deal, if signed, would eliminate approximately 95% of tariffs on trade between these countries, who have a combined GDP of over $10 trillion USD.

In November, Canada surprised the other 10 countries by declining to sign the agreement, to the surprise of the negotiators and the Canadian international trade community. However, amid efforts to diversify exports beyond the American market, it seems unlikely that Canada will continue to drag its heels on an opportunity to gain preferential access to the Japanese market in particular. Expect any final issues to be resolved and the CPTPP to be signed sometime in 2018.

2. Ongoing, contentious Brexit talks

By December 2017, the UK has completed the first phase of Brexit negotiations with the EU, covering issues such as the Irish border, citizens’ rights and financial settlements. The second phase of negotiations will cover the UK’s transition period after formally leaving the EU in March 2019. Discussions over the long-term relationship between the UK and EU will be included in phase three.

This process was complicated on December 13, when several Conservative British MPs joined the opposition to vote for an amendment requiring British Parliament to debate and vote on any final deal with the EU before it can be approved.

The second phase of Brexit negotiations are planned for 2018, and are expected to present few greater challenges than the first phase. The final phase on the long-term relationship between the UK and EU, however, presents several important questions about economic integration and free trade that Britain’s politicians and citizens have not yet agreed upon.

With two sets of challenging negotiations, and the extra hurdle of parliamentary approval, the odds that talks will drag into the final three months before the UK leaves the EU on March 29, 2019 remain high.

3. Sustainable, cleantech exports

If you’re involved in the clean tech and sustainability sector, 2018 should be a strong year for you. Despite the U.S. withdrawal from the Paris Agreement, global regulations are still trending towards stricter environmental and emissions regulations, requiring businesses to invest in cleaner technology in order to meet those standards. According to EDC President and CEO Benoit Daignault, total global investment in cleantech has now exceeded $1 trillion and will reach $2.5 trillion by 2020.

Canada in particular is placing great emphasis on this industry. The Canadian government promised $1 billion towards clean tech in its 2017 budget for R&D. The Trade Commissioner Service is also hiring 15 new Trade Commissioners to focus specifically on cleantech.

4. India, Brazil, and New Zealand – the rising stars of global trade

If you’re looking for new markets over the next 12 months, Morgan Stanley recommends you take a hard look at India. They argue the country’s increased digitization, new tax laws and younger demographics present a bright future, and predict 7.5% GDP growth in 2018. Morgan Stanley also predicts that India will be the world’s fastest growing economy over the coming decade.

Brazil will also see a quick recession recovery, growing an expected by 3.1% in 2018, according to the Brazilian government.

If you’re more interested in fully developed markets, Forbes ranked New Zealand second on its 2018 Best Countries for Doing Business rankings, citing its 3.6% economic growth in 2017, among other factors. The country also ranked highly in several categories for ease of doing business, including first in IP rights, bureaucracy/red tape levels surrounding business, and Transparency International’s Corruption Perception Index.

5. Meaningful action to reduce oil dependency

As Venezuela continues to suffer through the collapse of its oil-dependent economy, and the U.S. plans to become a net exporter of oil within 10 years, several oil-dependent economies are taking steps to diversify their economies.

In Russia, Putin’s approval levels are dropping as the economy struggles through lower oil revenues. Despite making fiscal changes to reduce the national budget’s dependence on oil revenues, he may push for new measures to improve his chances in the country’s 2018 presidential elections.

Saudi Arabia has plans to sell about 5% of Saudi Aramco, the state-owned oil company, through an IPO in 2018 and expects to generate up to $100 billion for the country’s Vision 2030 program, designed to shift the Saudi economy away from oil dependency towards tech and entertainment services.

Nigeria and Angola, meanwhile, are looking to agriculture to reduce their oil dependency issues. Nigeria, dependent on oil for 70% of government revenues, has launched a new program to increase yam exports to Europe and the U.S., as the country produces 60% of the world’s yams. Angola are instead focused on a broader approach to tap into their agricultural potential, which includes producing more cereals, milk, chicken, cassava, and other products.

6. Banks taking on blockchain

It is practically impossible these days to tune into the business or financial news and not hear a story about the latest blockchain or cryptocurrency development. Blockchain technology, allowing multiple players to have access to a live, unalterable digital ledger, offers game-changing possibilities for international trade finance. In 2018 this buzzworthy fintech is moving beyond Silicon Valley start-ups, into the mainstream world of global financial institutions.

In March, 2017, we reported on how banks were working to bring the advantages of blockchain technology to their corporate clients. In May, the R3 Consortium, made up of of 70 of the world’s biggest financial institutions and created to research and develop blockchain adoption, announced it had secured its largest ever investment. Then in October 2017, seven major banks partnered with R3 and Finastra to develop a blockchain-based marketplace for syndicated loans. On December 6, Amazon joined the blockchain party, announcing a partnership with R3 to allow the Corda platform to be the first distributed ledger technology to operate on the Amazon Web Services Platform.

What will we see in 2018? Swiss global financial company UBS has led an initiative to create a “utility settlement coin” that would represent each major national currency. If this coin is launched, the Corda platform could be adapted to facilitate its use.

IBM is working on launching their own blockchain platform that would allow banks to rapidly clear global payment transactions. There are also several start-ups working on digitizing the bill of lading process.

2018 could be the year some of the blockchain-based payment initiatives move from development to adoption.

7. Adoption of futuristic supply chain technology

Machine learning, automation and robotics, self-driving vehicles, new tracking technology – all of these futuristic supply chain tools will see major developments and implementation in 2018.

The past year was a big one for self-driving vehicles, culminating with the reveal of Tesla’s new fully electric semi, gaining pre-orders from big players such as PepsiCo, UPS and Walmart. Companies invested over $1 billion into self-driving and other trucking technologies in 2017.

Speaking of investing in supply chain technology, over $4 billion was invested in AI by U.S. venture capitalists in the past year. One application that has seen immediate return for companies adopting machine learning capable AI is Multi-Echelon Inventory Optimization (MEIO), which has been shown to reduce inventories by 30% while maintaining or improving customer fill rates.

Robots will also continue to play more of a role in warehouses in 2018. While some are increasingly capable of working independently, replacing human workers on the floor, others are working alongside humans, or being controlled by humans using VR applications. There’s no doubt that the demand for the skills needed to work with robotics will continue to rise in the year ahead.

8. Planning for the possibility of a world without NAFTA

The sixth round of NAFTA talks is set to kick off in Montreal January 23. But as the negotiations near, there doesn’t seem to be a lot of positivity. The first five rounds reportedly saw very little progress, putting even more pressure on this next round.

What’s the problem? The U.S. is seemingly immovable on five issues that pose major problems for the agreement’s other two member countries, Canada and Mexico.

The five issues include:

• Removal of reciprocity in government procurement at the sub-national level
• Changes to the rules of origin in the auto sector
• Elimination of the independent dispute resolution clause
• End of Canadian supply management of the dairy, eggs and poultry industries
• Addition of a “sunset clause” on NAFTA itself

“NAFTA, by itself, will not collapse,” said Mexico’s Economy Minister ldefonso Guajardo in October, but even if Mr. Guajardo is right, it may change drastically from what we have in place today.

If this really does spell the end of NAFTA, the Canadian auto, pulp and paper, chemicals, mining, aerospace and oil and gas industries are likely to be most affected, according to BMO chief economist Douglas Porter.

Even without NAFTA, trade between the three nations is inevitable. Supply chains between Canada and Mexico criss-cross the U.S. How businesses adapt to the realities of a new – or non-existent – NAFTA, is something we’ll be watching closely in 2018.

9. Cyber threats and IP risks

As technology gets more sophisticated and ingrained in our work and personal lives, so too does the threat of cyber security breaches, which in turn compromises our intellectual property. Sixty-four percent of companies surveyed reported some experience of web-based attacks in the past year. Companies of all sizes are targeted and face the risk of cyber threats from simply being connected to the internet. And the costs are large – the average cost of a data breach in Canada is a jaw-dropping $6.03M.

So what types of threats are growing in 2018? Phishing, social engineering attacks, malicious code, botnets, denial of service attacks and ransomeware are all on the rise.

Ransomware in particular is growing in frequency, attacks rose an alarming 50% in 2016. Demonstrative of the damage a ransomeware attack can cause was the aftermath of the WannaCry attack in May 2017. Hundreds of thousands of individuals lost access to their data, compromising intellectual property, private customer information, and disrupting commercial processes.

As a business, it has never been more crucial to include cybersecurity programs directly in your strategy, and engage IT professionals to help cover all aspects of your web-based properties.

10. Demand for global trade skills higher than ever

Despite continuing turmoil and uncertainty on the global political stage, Canadian businesses still hold an optimistic outlook about their export opportunities. According to Export Development Canada’s Fall 2017 Survey, the majority of respondents believe that export sales will increase in 2018, citing new opportunities, growing demand, and expansion into new markets as stimulating factors.

As more businesses of all sizes get involved in international markets, the demand for talent skilled in global trade processes, is also growing.

“We hear from exporters all the time that knowledge is one of the most important tools for building international success,” said EDC Senior VP, Business Development Mairead Lavery.

In 2017, the FITTskills international trade training program underwent a major update, including the addition of 60% new content to reflect the changes we’ve seen in technology, ecommerce, trade agreements and more. In October, FITT also partnered with EDC to expand access to the available resources for businesses of all sizes looking to take advantage of international opportunities.

There’s no doubt that we all face an exciting year ahead, full of innovation, an ever-shifting global political environment, and risks, alongside ample new opportunities for business growth.

What trends will you be watching in 2018?

The post 10 global trade trends we’ll be watching in 2018 appeared first on Trade Ready.