For Evan Buie, CITP, the path into international trade began with a genuine interest in global business and early career experiences that opened doors into the world of cross-border commerce.

“I had always been drawn to international business and took many courses covering the subject for my undergraduate degree,” he says. After graduating, he entered a role as Coordinator of International Relations in Hokkaido, Japan, giving him a first taste of what a career that spanned across continents and cultures would be like.

As it turns out, “taste” would become a thematic word in his career journey, beginning with his next two roles upon returning to Canada, ones that would see him serving two multi-national food and beverage giants.

Those opportunities became the launchpad into his first formal trade role. “This experience helped me secure my first position in international trade, focusing on East Asia and Oceania, with the Government of Alberta’s Export Development Team within the Ministry of Agriculture,” he notes.

Bringing Alberta exporters to the world and the world to Alberta

During his time with the Government of Alberta, Evan had the opportunity to host several delegations from overseas. One of his most memorable experiences came early on:

“One of my first delegations involved a Chinese chef and his social media team in Calgary. We went to cattle ranches and multiple local, hidden gem restaurants. Seeing their excitement when they tasted the local delicacies or seeing the Rocky Mountains for the first time was hugely enjoyable.”

He also recalls the energy of taking Alberta companies abroad: “I also had a chance to lead an Alberta delegation of companies to Japan for a three-city tabletop expo.”

“Seeing the companies in their element, talking with prospective buyers, and making deals is why I do the work I do. Karaoke was a blast too!”

These moments, equal parts cultural exchange and trade development, reinforced his desire to help Canadian businesses grow internationally, while fostering meaningful relationships with exporters overseas.

A major milestone: becoming a Trade Commissioner

“One of my proudest professional accomplishments was being hired by Global Affairs Canada as a Trade Commissioner,” Evan says, describing the achievement as a highlight of his career. In this role, he has taken on leadership of one of Western Canada’s emerging agri-food showcases:

“I’ve had the pleasure of co-leading the Taste of Western Canada, a food and beverage tabletop showcase held during the iconic Calgary Stampede.”

A huge undertaking, the third iteration of the show will bring together 80 Western Canada agri-food and beverage companies and over 75 domestic and international buyers, making it one of the most targeted food and beverage events in all of Western Canada. “Its potential for further growth is enormous,” Evan states.

Discovering that business results don’t happen overnight

Over the years, Evan has developed a deeper appreciation for the persistence and patience required in global commerce. He notes that professionals in trade must have a deep level of dedication to make international transactions and partnerships come together. Reading about it may make it seem simple in theory, but “…it is another to live it.” he states.

“The time commitments that companies put into their international business development efforts can take years before they are rewarded. Overnight successes are not the norm.”

How FITTskills training strengthened his confidence

When Evan enrolled in FITTskills courses, he discovered how helpful comprehensive and structured learning could be. He enjoyed how the program pushed him to focus on the course content for an extended period of time, when otherwise, many topics may have only come up in passing or infrequently on the job. The fact that the topics were broken into digestible chapters made the process easier too.

In fact, the format became a practical tool he continues to rely on.

“I have since gone back to the textbooks for specific content when following up with clients. The courses have also made me feel more confident in my interactions with companies as I am better positioned to advise them on the FITTskills course topics.”

With his FITTskills training complete, Evan feels like a more well-rounded international trade professional, one that can confidently approach clients and international business with advice and solutions.

This confidence would become apparent after taking his favourite course, International Trade Finance: “I found it quite challenging as the content is material that I would have historically referred companies to other service providers for advice on (i.e. EDC), but I learned a lot and can speak more confidently to the content now,” he notes.

Pursuing the reputation of the CITP designation

Evan chose to apply for the Certified International Trade Professional CITP®|FIBP® designation to “highlight my educational achievement, knowledge obtained, and to add a reputable designation to my resume, LinkedIn page, and signature line,” he says. It’s a credential he views as both reputable and meaningful, something worth showcasing across his professional profile.

Earning it was also another proud milestone to add to his career highlights. Understanding how valuable the designation can be going forward, he feels it adds another layer of credibility to his work:

“I’ve been told that if I were to apply to a job in the future, and all things being equal otherwise, the candidate with the CITP designation would get the job.”

A bright future building Canada’s trade relationships with other countries

As he continues to support Canadian businesses entering international markets, Evan’s CITP designation will help reinforce the guidance he provides, grounded not only in experience, but in globally recognized best practices. It will also, if his trend in food and agriculture continues, be filled with flavourful adventures.

The post CITP Spotlight: Evan Buie – Trade Commissioner, Global Affairs Canada appeared first on Trade Ready.

For Marc-André Beaupré, CITP, a career in international trade wasn’t something he set out to find—it was something he grew into through curiosity, determination, and an appreciation for global business. 

Before joining Export Development Canada (EDC), Marc-André worked in the banking sector and frequently collaborated with EDC teams. Those early interactions made a lasting impression.

“I collaborated with them on many clients. I was impressed by their knowledge and what they were able to do to help entrepreneurs export or import products or services,” he explains. 

He also felt drawn to the global mindset that EDC embodied.

“I always had an interest in other cultures from around the world. So, when the opportunity came to become an employee, I took my chance and applied. Four years later, I’m still as happy as I was on my first day working here.”

A career built through perseverance and reinvention

When asked about his favourite career story, Marc-André doesn’t point to a single transaction, project, or deal. Instead, he points to the journey itself: “My career so far is my favorite story,” he reflects. 

That journey began far from the world of finance. “When I finished high school, I earned a vocational diploma in machining. I worked for about two years in that industry before realizing that I wanted more.” That realization led him back to school to complete his B.A.A. (Bachelor of Business Administration), marking the beginning of a complete career pivot. 

“Having no financial background or experience in the banking business, I started from the bottom and worked my way up to becoming a Senior Account Manager in the business sector and now, a Senior Relationship Manager at EDC.” 

It’s a path built on determination—one that mirrors the resilience required for international business itself. 

Supporting Canadian exporters through strategic insight

As a Senior Relationship Manager at EDC, Marc-André now works closely with companies seeking to grow beyond Canadian borders. His progression into this role has been shaped by each step of his earlier experience—from frontline banking to complex client portfolio management. 

“The path I took to get to where I am today,” he says, is one of his proudest professional accomplishments.

That path has equipped him with a deep appreciation for what exporters face every day. His work now involves supporting businesses as they navigate risk, access financing, and pursue international opportunities—something he finds both challenging and rewarding. 

A crucial lesson: confidence matters

One insight Marc-André wishes he had gained earlier is the importance of trusting yourself in a constantly shifting industry. 

“Don’t doubt yourself. International trade is complex and always different. That’s what makes our job so interesting and captivating.”

It’s advice that many international trade professionals learn only after years in the field, and it speaks to why continuous learning is so highly valued throughout his career. 

How FITTskills enhanced his work with exporters

Marc-André credits FITTskills training with strengthening his ability to support clients more effectively.

“FITT helped me better understand the reality of an exporter. Helped me have better conversations and provide better counsel for my clients. It enhanced my knowledge of the international trade business.”

His favourite course? “International market entry strategies. Because you learn about other culture and way of doing business to make sure that your strategies will succeed.” The frameworks, models, and case-based learning have become tools he applies daily when advising businesses preparing to scale globally. 

Why the Certified International Trade Professional (CITP®|FIBP®) designation mattered 

Encouraged by other certified professionals, Marc-André saw the CITP designation as the natural next step in deepening his expertise. “Thanks to other graduates holding the certification, I was looking for a way to deepen my knowledge of the international market, and the CITP seemed to be the best option.” 

Earning the certification became a meaningful personal milestone—especially given the challenges he faced balancing career and family. 

“I feel proud, because I worked full-time, had a one-year-old baby when I started, and still managed to take and succeed in all the requirements and courses to get the CITP designation.”

A credential that strengthens long-term career growth

Marc-André views the CITP as a powerful enabler for future opportunities. “I foresee my CITP designation playing a significant role in my future career by enhancing my credibility and expertise in international trade. This certification not only validates my knowledge but also equips me with the skills to navigate complex global markets effectively.” 

He also recognizes the value of joining a global network:

“Being part of the CITP community allows me to stay updated with industry trends and best practices, ensuring that I remain at the forefront of the international trade sector.”

With grit, resilience, and determination shaping his success so far, Marc-André’s trajectory is clearly moving in one direction—upward—with no signs of slowing down. 

The post CITP Spotlight: Marc-André Beaupré — Senior Relationship Manager, EDC appeared first on Trade Ready.

Gaps in knowledge are among the top reasons that some small and microbusinesses don’t yet export their goods or services, according to the Canadian Federation of Independent Business (CFIB).

Regulatory hurdles and expenses are other factors keeping many small businesses local. This guide to exporting provides an overview and resources to help you get started if you want to sell your products and services in international markets.

How international trade affects Canadian businesses

In recent years, government statistics show that international trade accounted for nearly two-thirds of the Canadian GDP.

Canadian business exports add 3.3 million jobs to the economy. To put that in context, that’s nearly one in six Canadian jobs.

Even if your business is secure, you may still want to scale it to take advantage of opportunities for growth.

For businesses of any size, exporting provides the opportunity to find new markets, scale your business, and become more resilient in a volatile economy. Yet, as recent research from the CFIB shows, only a minority of Canadian small and medium-sized businesses are currently seizing these opportunities.

Step 1: Are you ready to join the global market?

The first step is to decide whether your business is ready to expand into international trade. Identify which of your products or servicesmay appeal to consumers in other countries. Next, figure out whether the investment is likely to be worth it by doing a feasibility study and thorough market research.

FITT’s Export Vision Board can help you realize what exporting might look like for your business.

You can use the Export Vision Board template to visualize and capture the critical components for your international market expansion.

If you’re not sure what to include, there are 3 examples of completed templates including B2B product exports, B2C product exports, and service exports to inspire you and help you get started.

If you want to dig deeper, consider taking some training like the Feasibility of International Trade course, which was designed to help businesses of all sizes assess whether international opportunities are viable, and if the potential benefits outweigh the risks and costs.

Once you decide whether exporting is a good move for your business, start making a plan so your actions will be strategic, not accidental. Identify your target consumers and how you offer something better than what they might find locally.

Continue to revise and change your export plan as you learn more.

Step 2: Learn the bureaucratic requirements for your industry

Each industry has its own set of regulations and laws to work within when it comes to exporting or importing.

Exporting in Canada means actively engaging with multiple government, legal, and financial frameworks.

Your first step is learning what is required within your industry. For example, exporters must comply with regulations enforced by the Canada Border Services Agency (CBSA). These regulations may include export classification, permit requirements, and rules for export reporting in Canada.

The value of your product plays a role. All exports above $2,000 require a declaration using the CBSA’s Canadian Export Reporting System (CERS) and may also need special permits from Global Affairs Canada. Also, don’t forget taxes that may apply, like Goods and Services Tax (GST) and Harmonized Sales Tax (HST).

As you unravel the requirements, use that information to update your plan. Does this knowledge change the logistics of how you will get the product or service to your prospective customers abroad? How does this affect your budget and costs? How will you cover these added expenses?

Not only do you need to be aware of Canadian trade regulations, but also those in your export destination country. Once you have a sense of the fees, taxes, and tariffs involved, you are in a better position to plan. Just be aware that laws, tariffs, and taxes change.

If you have been keeping up with U.S. news, you may wonder if now is the right time with increased tariffs on certain exports to the United States.

In international trade, like in life, change is one of the few constants.

These changes and potential culture changes make the new trade environment more complex, but you have a couple of options.

Now is a time when you could focus on building your market outside the U.S., or you could focus on learning the ins and outs of expanding your North American market. Either option has a unique set of challenges, and both require a nimble approach as you adapt to any unfolding changes.

Step 3: Identify your supply chain and budget

Map out the specifics within your supply chain from planning, manufacturing, marketing, and getting the product to your consumers. If you offer a service, this may be easier, but you should go through the same steps.

Some of these steps are likely already part of your business workflow. Spend a little extra time on the added steps, such as any permits and reporting you may need to do. Also, note any changes to your product as your export country may have specific standards for its own regulations, safety standards, or documentation requirements. Will you need to translate any of your packaging or materials?

Update your plan and put together a budget. Do you need to raise additional capital in order to build the export branch of your business? If so, take the time to look into business development loans, grants, and investment capital options.

Step 4: Develop your marketing and fulfillment plan

Marketing your products abroad is challenging. But thanks to the internet and social media, your customers are more accessible than ever. The hard part can be effectively communicating with potential customers in a language you are not fluent in. If this is your plan, be sure to partner with a quality translation and localization service.

Since you take on additional financial risks when exporting, you want to be sure to conduct market research and develop a comprehensive marketing strategy.

At this point, you may be in a better position to revisit your risk assessment. What are your export-specific risks beyond those you face as an entrepreneur in your home country? Craft a plan to mitigate those risks.

In summary, learning how to export in Canada is a multi-step process that includes:

• Assessing whether your business is ready
• Developing an export vision that aligns with your business goals
• Conducting market research as well as feasibility analysis
• Understanding export regulations and compliance
• Managing tax, payment, and GST/HST implications
• Identifying and managing export-specific risks
• Building a formal export plan with a timeline for implementation

The challenges and complexities of running an export business can be overwhelming. But there is plenty of support available to businesses of all sizes looking to grow globally.

The thing that trips up many businesses that are new to importing and exporting is “knowing what they don’t know”.

Or in other words, getting a full picture of what is involved in setting themselves up for success in international markets, and how to avoid common pitfalls that come with inexperience.

Exploring training to fill in knowledge gaps, hiring outside help that bring in much-needed expertise, and seeking guidance from trade advisors and locally-engaged support such as the Trade Commissioner Service, can make what may seem daunting doable.

The post How to start an export business in Canada appeared first on Trade Ready.

FITT gives out awards each year to students who’ve demonstrated exceptional academic performance in their international business program. These students are selected from hundreds of candidates enrolled at any of the educational partner training organizations who deliver the FITTskills program or whose international business programs are recognized by FITT. Here are this year’s remarkable winners!

2019’s Student of the Year is a remarkable double-winner

The student of the year award is given to an exceptional student who achieved the highest GPA for the 2019 academic year and is presented by FITT’s Strategic Partner, Export Development Canada. This year we are proud to award Bridget Archibald, CITP, who studied at Nova Scotia Business Inc., where she also works as an Export Development Executive for the Ocean Technology sector.  Bridget is even more remarkable in her achievements, having also earned the International Sales and Marketing Award along side her project partner Allyson England.

Bridget’s interest in pursuing a career in international trade came from a co-op term she spent at the student exchange office at the Dalhousie University School of Business.

“I worked with business students from all around the world and I loved hearing all about their cultures, experiences, travels, and their perspectives on Canada. From that point on I knew I wanted to learn about international trade,” Bridget says.

I love that international trade is built on human elements like culture, relationships, connections, and trust, but it also combines disciplines like marketing, finance, production, law, and logistics. To work in international trade, you must have a level of understanding of all these things, which to me makes it challenging, and fun.

Bridget says that her international business education taught her the practical elements of how to identify true opportunities, take real steps to mitigate risk and build a business plan.

Nova Scotia Business Inc. (NSBI) is an organization that works with businesses and individuals to help them discover new exporting opportunities and give them the tools to pursue them successfully through training, resources and expert help from their team of advisors. As an NSBI employee, she took advantage of the training available to her there as well through the FITTskills program. She’s passionate about the work she does there.

“I already have my dream job! I am an Export Development Executive for the Ocean Technology sector. This is a fast-growing and important sector to the province, and one where Canada is a true global leader. Ocean Technology companies from Nova Scotia export literally around the world, and I get to help them do that. On top of international trade, I’m learning about marine technology, ocean science and more. Plus, I get to do it from (and for) Nova Scotia, a place I love,” Bridget says.

Her colleagues are just as enthusiastic to have her on the team.

“Regardless of the task at hand, Bridget is truly remarkable in the engagement, passion, and dedication she brings. We are so fortunate to have such a hardworking and caring individual on our team. Bridget is unique in that she brings the same engagement, passion, and dedication to everything she does. Whether it’s for her work at NSBI or to broaden her skills and training, she’ll always be there, giving 110%,” says Yuliya Demish, CITP, FITT Coordinator, Nova Scotia Business Inc.

How does Bridget feel about receiving not one, but two FITT awards? She is gracious in her achievement.

“It is a true honour. I’ve met many smart people through FITT, including Allyson, my partner for the Sales and Market project (who is a very inspiring woman entrepreneur), the FITT instructors, my colleagues at NSBI, and the other FITT participants. I learned from them all. I am very grateful for my previous education and experiences, and to FITT and NSBI. I feel really motivated to use my knowledge!”

Winning International Sales and Marketing Plan aims to tackle tricky U.S. market

The International Sales and Marketing Plan Award is presented to the student whose project submission received the highest grade. This year’s award goes to the dynamic duo of Bridget Archibald, CITP and Allyson England, who both studied at Nova Scotia Business Inc.

Allyson England is the Founder of Nova Box, a Nova Scotia-based gift box company specializing in Nova Scotia made products. Via an online store and corporate catalogue, Nova Box shares a ‘little piece of Nova Scotia’ with customers around the world. Allyson and Bridget used this growing small business as the basis for their Sales and Marketing plan. According to Allyson,

“The goal of the International Sales & Marketing Plan was to explore market expansion into the US.  We analyzed market trends in both the retail and corporate gift sector, focusing specifically on building partnerships with U.S. companies who had a Nova Scotia connection.”

The plan wasn’t without its challenges. Though Nova Box resonated with Canadians due to the emotional connection customers have with Nova Scotia, Allyson wasn’t sure that her potential customers south of the border would have the same affinity. But luckily, they had a plan to tackle this challenge.

Building a successful business starts with forming strong relationships with your customers, and ensuring your product offering meets a need or solves a problem that they are currently experiencing. Our plan included a laser focus on leveraging existing relationships and interviewing potential customers to ensure product/market fit.

“After completing this project, we felt confident that we had adequately analyzed the market and formed a plan that was both aspirational and achievable. Completing the FITT sales and marketing coursework really helped in forming our approach, and ensuring we had considered all aspects of exporting to a new market,” Allyson says.

As you can tell, Allyson is passionate about her business, and the possibilities offered by international markets inspired her to learn more about international trade.

“My favorite part of building a business is imagining where it could go, and then setting off in that direction. Being in the driver’s seat to identify opportunities, solve problems and execute creative strategies is why I do what I do. I also love being able to work with local companies to help them build their global footprint,” Allyson says.

Completing the FITT Diploma in International Trade has given me the systematic knowledge required to enter and succeed in a new market. As a business owner, it is easy to get caught up in making incremental steps forward without a robust long-term plan. Export training has helped me think 10 steps ahead.

Since completing the marketing plan, Nova Box has acquired The East Coast Box Company. They now offer gift boxes made with products from New Brunswick, Prince Edward Island, Newfoundland and Nova Scotia, allowing them to expand their customer base to those who have an affinity for the East Coast of Canada.

Ultimately, Allyson strives to become the the #1 exporter of Canadian made food and gift items – no small feat, but she’s off to a promising start!

A plan for tackling one of Europe’s cannabis black markets wins this year’s International Business Plan Award

Similar to the Sales and Marketing Plan award, this accolade goes to the highest grade for a completed international business plan. For the 2019 academic year, we are pleased to present it to Juliana Fuentes who studied as an international student at Algonquin College.

Juliana decided to study international trade as she saw that it was increasingly playing a major role in world’s economy and added to her interest in understanding foreign cultures and globalization.  She also recognized a growing demand for graduates who develop skills to trade successfully and identify business opportunities to exchange products and services.

But her interest in international trade goes beyond just a growing demand for her skill sets.

“I love that every single sector of the economy need to trade. Internationalization is so dynamic that it adapts to every situation. We see this even more so during pandemic times. Daily, businesses try to reinvent and develop new ways to interact and conquer new markets despite physical cross border restrictions,” Juliana says.

I also like to believe that specialization of nations and their increasing connectivity is the path to global development, resulting in a fairer world where less developed countries have the opportunity to improve their citizens’ minimum life standards.

Her award-worthy business plan was presented to Hexo Corp., a leading cannabis company that cultivates, manufactures, develops R&D and distributes easy to use cannabis products for adult use and medicinal purposes. The plan’s to target the Czech Market from their new facility in Greece to reach new opportunities and mitigate the impact of black market.

To tackle this ambitious project, Juliana did some preliminary research about the industry situation in the market, to find out how the cannabis market was growing in different markets. This helped her identify Europe as principal market. Then, she sought to identify the most beneficial market profile to target.

It was a challenge for her to find up-to-date, reliable information. She tackled this problem by grouping the data as quantitative and qualitative and identifying reliable sources such as OECD and World Bank. She also credits the support of her International Business Management and International Research professors, who guided her through all the processes involved.

After weeks of hard work and more than a few sleepless nights, Juliana was able to organize her research and come to a cohesive business plan she could be proud of showing off to Hexo Corp.

Throughout her time studying  in the International Business Management Program at Algonquin College, Juliana learned a wide range global business knowledge and practical skills in supply chain management, trade finance, currency fluctuations, risk mitigation, legal aspects of global trade and marketing strategies.   However her most valuable insights came from the cross cultural experience she had as an international student.

“I had the opportunity to understand Canadian culture, not only from the business perspective, but also from the personal one, thanks to all professors that were approachable and interested in making students’ adaptation easier. And the interaction with classmates from a variety of countries enriched my perspective to understand cultural differences and evaluate each of the topics we discussed from diverse perspectives,” Juliana says.

We always see big things come from the FITT Education Award winners, and we know this year’s group will be no exception. Congratulations to all three of this year’s Award Winners for their hard work and great achievements, and what is sure to be the beginning of three exciting international trade careers!

The post 2019’s FITT Education Award Winners come up with creative solutions to tackle tricky market entry challenges appeared first on Trade Ready.

Despite global trading tensions and worries over recessions, Canadian exporters and investors had expressed confidence in foreign trade by planning to increase both foreign exports and foreign investments in the near future.

However, those plans, reported in Export Development Canada’s (EDC) year end Trade Confidence Index (TCI), have been cast into uncertainty as coronavirus disrupts international travel, cuts off trade pipelines, and causes global markets to plummet.

Guide: How COVID-19 delays could affect your supply chain from contracts to insurance and custom clearance

While immediate plans for increases in foreign investment and export may be uncertain – Canadian exporters to China, for example, have already seen disruptions –EDC continues to be optimistic, saying disruptions should be short term and the markets resilient.

Businesses reported plans to increase exports and investments

Before coronavirus outbreak, 51% of the 1,000 businesses surveyed for the TCI said they expect exports to the United States to increase in the next six months, and there had been an increase in foreign investment by Canadian exporters in 2019 overall. Investments in other countries has risen from 14% in 2012 to 17% in 2019.

Ten percent of businesses reported that they plan to invest abroad in the near future. The United States continues to be the target of Canadian exporters and investors.

Currently, 91% of the responding businesses are exporting to U.S., followed by 17% to the U.K., 15% to Mexico, 15% to China and 14% to France. For those planning to export to new markets, 67% planned to export to the United States, 12% to France, 8% to China, 8% to Japan and 7% to the U.K. The story is similar for Canadian businesses investing abroad: United States is the overwhelming destination for foreign investment, with 64% of businesses currently investing in the United States, 12% in China, 8% in the U.K., 8% in Mexico and 7% in Germany. Of those planning to invest abroad, 68% to the United States, 11% to China, 7% to Germany, 6% to India and 5% to Mexico.

How will the coronavirus pandemic disrupt those plans?

In its Q1 predictions, EDC predicts that coronavirus outbreak impacts won’t extend into the last two quarters of 2020.

Additionally, EDC predicts that any ground lost by businesses will be regained as travel bans are lifted and supply chains are restored. Those predictions are based on previous outbreaks, such as SARS and H1N1, which also dramatically interrupted markets and trade. In those cases, markets showed that they were able to rebound quickly from the sudden shocks of business closures, interrupted supply chains and decreased economic activity.

When it comes to moving forward with growth plans and current operations, EDC advises Canadian exporters and foreign investors to continue to do business and execute their plans.

At the same time, EDC advises, businesses should be aware of any changes in foreign regions that could cause disruptions. EDC, meanwhile, said it will continue to work on broadening foreign markets for Canadian businesses, even to areas impacted by coronavirus.

Before coronavirus, concerns over global recession eased

When surveyed about a global recession before the coronavirus outbreak, businesses said they were less concerned that a recession was imminent. When asked in mid-2019, 41% of businesses reported concerns that a global recession would hit in 2020. That number had dropped to 26% by then end of the year, and 35% of respondents said they didn’t expect a global recession before 2022.

This shows that based on what they’re seeing in their own businesses, Canadian exporters and investors expected markets to remain steady for the time being. While tumbling global markets could fuel concerns for some businesses, EDC said markets should prove resilient, as demand to meet global human need remains the same regardless of the outbreak.

While some businesses likely will see temporary drops in demand that harm cashflow, EDC said short-term emergency loans and government aid should help to alleviate constraints and enable businesses to recover when demand resumes.

CUSMA could mean good news for exporters

Once coronavirus border constraints lift, Canadian exporters and investors could see some positives with the passage of the Canada-United States-Mexico Agreement (CUSMA). The agreement, meant to replace NAFTA, was quickly ratified by the Canadian Parliament March 13th. The number of respondents with a negative view of CUSMA dropped from 34% to 16%; 62% of respondents had a neutral view of CUSMA, and 22% had a positive view.

Additionally, while the primary concern cited by businesses was international protectionism, the CTI reports that businesses don’t feel that they have been influenced or negatively impacted by international trade tensions. In the survey, 70% of businesses said their concerns had not influenced their export or international investment strategies. Additionally, 54% of respondent said the trade tensions between the United States and China had not impacted their businesses, and 12% of businesses said they have positively been impacted. Sixty-seven percent said they had not been impacted by trade tensions between China and Canada, and 6 % said they have seen positive impacts.

Trade confidence beyond coronavirus

Undoubtedly, the outbreak of the coronavirus pandemic has disrupted trade markets, along with the entire economy, in a way that is sure to have shaken trade confidence.

Before the outbreak, the TCI delivered quite a bit of good news, as an increased number of exporters and investors had widened their footprint in foreign markets, and more businesses expected to follow suit. Businesses also said they have not been hurt by trade wars and expect positive effects from the ratification of CUSMA.

While coronavirus adds a great deal of uncertainty, EDC said international businesses shouldn’t be overly alarmed. The effects of the pandemic should be over by the second half of this year, EDC said, and businesses and markets should rebound quickly.

As businesses move beyond the pandemic, there is the potential to move forward with growth plans and see a positive end to the year.

The post Trade Confidence Index: Coronavirus pandemic injects unknown into companies’ planned increases in exports and foreign investments appeared first on Trade Ready.

In our current trade environment, trade wars will increase costs to the consumer, and the risks for employers, shareholders and employees of cross-border businesses. However, what will remain unchanged will be Canada’s need to generate our standard of living through success in the global marketplace. Current customers need to be retained and new ones found. Input cost changes will require significant creativity to preserve trade flows and margins.

Canadian politicians and economists have been talking for a very long time about our over-dependence on the U.S. market and the need to diversify. The diversification message coming from the Canadian government to businesses today has a special note of urgency, reflecting the risks which are being added seemingly daily for cross-border businesses.

And there’s been all kinds of attempts over the years to encourage Canadian companies to look elsewhere. Well, now you have a circumstance in which our best market, the United States, may become less attractive as a place to do business. This should provide Canadian corporations with an opportunity to reassess where else in the world their products can be marketed, products and services.

Companies can’t diversify their global markets without the right tools

We’ve got to turn this to our advantage. This is a real moment in time for Canadian trade and organizations striving to do cross-border business.

We know that knowledge preserves margins. Knowledge is power in all human activities, but particularly so in international trade. Market intelligence translates directly into market power. Value-added exports create higher margins the closer the producer gets to the customer. Availability of information is therefore critical to export growth, sustainability and job growth in a supplier’s jurisdiction.

The Forum for International Trade Training (FITT) and Export Development Canada (EDC) are heavily involved in efforts to grow the number of small businesses taking advantage of opportunities in the global marketplace through upskilling and building international business know-how.

As more people take FITTskills courses, their businesses will be increasingly prepared to make the risk calculations necessary to do the business and preserve their margins.

But this is also the perfect opportunity to refocus the way trade promotion services (TPO), such as the Canadian Trade Commissioner Service and private sector advisors, have been relating to their client base.

Trade promotion organisations and advisors need to give businesses what they really need – qualified leads

Look to TPOs like Saskatchewan Trade and Export Partnership, who are doing it right! Their number one deliverable to their Saskatchewan member companies are qualified trade leads.

Provide the qualified international leads to local businesses that are prepared and interested in doing a transaction. This is very difficult work. It’s far easier to do a speech to a chamber of commerce talking about how the GDP in Costa Rica has gone up 6.4% last year. Frankly, businesses don’t care about that. What they care about is who in Costa Rica is buying what I’m selling.

When I was an ambassador to the Philippines, we had the Asian financial crisis in ’97-’98. I went to a meeting of our ambassadors from around Southeast Asia and many people were despondent that the region would no longer be a priority market for Canada. I asked, “What’s the problem? Indonesia hasn’t stopped. Imports haven’t stopped. There may be fewer customers now, but go and identify some new ones.”

These guys were all tied in up in the idea that if you’re not a priority market, then you’re not quite as good. We don’t need priority markets. Canadian business needs customers and partners.

Serving businesses by thinking like one

Trade advisors and trade promotion services need to think more like the small businesses they serve and less like economists.

A major impact of the internet has been the facilitation of direct connection between buyers and sellers all over the world. Thanks to cyberspace, more customers are now in touch with more suppliers than ever before. A larger portion of Canadian companies became active and successful in international trade through the receipt of an unsolicited request for their product than you might think. One day, somehow, somebody heard about their product who wasn’t in Canada, and they became “accidental exporters.”

So, rather than establishing and promoting priority markets and sectors, TPOs and advisors’ priorities should instead concentrate on the selection of strategic services that will be offered to any qualified client.

Let’s leverage our assets to mitigate common exporter challenges

Classic trade promotion programs remain very important to the success of national economies in the global marketplace. Focused, targeted offshore marketing strategies work well. If exporters are to sell on something more than price, quality must be anticipated by a customer before it is experienced.

Similar challenges face exporters in every country:

• Need for a healthy and growing customer base
• An absence of support organizations in their communities
• Need to understand new markets, domestic and foreign
• Lack of skilled international trade practitioners in the economy
• Shortage of time to pursue opportunities over the horizon
• Low level of understanding in the community of how integrated local business has become in the international economy

We have the assets to facilitate global business:

• Young, highly educated professionals whose talents are at a global standard
• Access to the internet and global television news
• Access to global support organizations ex: logistics, standards, design, etc.
• Access to telecommunications and air connections enabling anyone to be anywhere in a day
• Access to public resources devoted to economic development initiatives (international and domestic public sector resources)

Public sector resources devoted to addressing these challenges, or capitalizing on these assets tend to be wasted when trade advisors endeavour to determine, rather than facilitate, the direction of the economy. The role of government advisors should be to leverage the efforts of the business community. Best practice dictates, therefore, that all advisors and service providers both public and private should apply resources to save the exporter time and effort.

Measures of success for trade advisors

Without the effective intervention of TPOs and advisors, business will still happen. But exporters, particularly SMES and those new to cross-border business, will be less equipped to handle challenges in the global marketplace, and will yield margins to someone in the process (customers, agents, or distributors).

How can TPOs and advisors measure success in their efforts to equip businesses to go global? Focus on the creation and impact of deliverables. For example:

• Capture the number and measure impact of qualified business leads to client companies
• Measure the number, and impact on corporate behaviour, of market research reports
• Track the retention and growth of the TPO or consultant’s client base
• Track client participation in trade fairs, missions, conferences and other events and document feedback

These are relatively simple measures, but they are effective. The challenge is to demonstrate real value to SMEs who have the potential to become clients and, in turn, successful exporters.

Help for business new to trade

Another challenge SMEs and organizations new to trade face is the overwhelming number of public and private organizations offering solutions. How do they know where to go? Overlap, duplication, scattering of resources and ignoring real areas of need are all too common within these organizations. Emphasis must be placed on cooperation and coordination between agencies focusing on economic development and reducing anxiety at early stages of development.

The key driver in the domestic and international support networks can and must be the TPOs and export advisors. They are in a unique position to:

• Create and drive the vision behind the national export strategy
• Make visible the current and potential impact on international trade on the economic wealth of the nation
• Identify and build the trade support networks which serve the needs of exporters
• Translate demand from the global marketplace into transactional market intelligence delivered to interested and active export companies

Trade advisors must lead the effort to create cross-border support networks that are driven by vision, designed by the private and public sectors, and guided by performance measures. The measures chosen have to impact the daily work of all involved.

The unfortunate truth is that no trade agreement ever created a direct job, except perhaps for the negotiators. Jobs are created when suppliers identify and satisfy buyers or visa versa. The needs of business are universal: qualified business leads, competitive intelligence, contacts with key decision makers and data on technical standards.

Equipping exporters with the knowledge they need to qualify customers and understand the competitive forces at work the will translate directly to more success and the higher margins.

The post How trade advisors can help today’s exporters to go global appeared first on Trade Ready.

As human beings have developed self-defence mechanisms that help them make safe choices, businesses must also protect themselves during expected (and not so expected) times of political challenges. To ensure successful operation overseas, business managers should take time to understand potential and plan for risks.

What exactly is a political risk for business?

International political risks for businesses are first and foremost economic threats caused by events like terrorism, war, sanctions, and other disagreements between heads of two or more states.

In other words, it is a risk of losing money due to unstable governments, economies or threatened nations.

This concept looks covers a broad spectrum of diverse problems. Some of the risks that international politics poses to businesses are ongoing, others only happen under the pressure of certain events and occur on an occasional basis.

Whatever the situation is, almost all political events entail two major consequences for international business players. These consequences are currency fluctuations and tightened/weakened international trade laws.

How to identify potential political risks

Identification is the first step to successfully managing consequences of any political climate change.

The easiest thing you can do as a business owner is to get a set of easy and helpful habits.

Read the news! Despite the biased and conflict-oriented nature of modern media, it is still a valuable source of information that can help you determine potential risks for your business. In a situation of a worrisome event or political conflict occurring in the zone of your business operation, you will be able to start taking preventive measures before it escalates.

Analyze carefully! Not all political events are potentially harmful to your business. The truth is, not even 50% of them are. Some events would have a serious social effect but only a few minor business implications. In order to filter out the meaningful events – from the perspective of your business – determine actors and conditions that could affect your priority goals. Create an inventory of a wide range of political risk types. From capital controls to increased taxation, labor strikes and protests, which could impact your company.

Political risks can be divided into macro and micro risks. While micro risks impact certain industries and are relatively easy to prepare for, macro risks can become a real trouble for an international business. At the same time, they normally result from series of political events and can be detected in advance. Macro risks include events such as a civil war or a major international confrontation between two or more governments. These typically exist where a country is forced to close borders or run into a huge devaluation of its currency.

Work with numbers and stats! In order to categorize an event as a risk, measure the vulnerability of your assets against it. The more assets you will find to be vulnerable under a certain political threat, the more invested and prepared you should be to balance out its negative consequences or to completely pull your investment out of the politically unstable area.

How to mitigate political risks in business?

There is no universal solution to situations when political risks start interfering with your business plans. Risk management in general is a very sensitive and complex concept that requires a unique approach in every single case. However, there exist principle rules of action for those involved in international business.

Following these rules helps mitigate political risks of almost any nature.

1. Insure your business.

Political risk insurance protects investors, financial institutions and international companies in case of events promoting financial loss. Such as acts of expropriation, domestic or international political unrest and violence (including war and terrorism), capital repatriation, and sovereign debt default.

Insurance as a tool of political risk mitigation is particularly important for those businesses that operate within developing economies. Although these areas offer a lot of opportunities for business growth, they are more susceptible to political turbulence.

As a business or a supply chain manager, you might have a long-term agenda which takes years to be realized within a certain foreign market. With fully customized insurance that covers your interests on chosen territories for a defined period of time, you can enter new markets with much more confidence. The cost of this method of political risk management is totally worth it.

2. Have a plan B for your supply chain.

Any business operating in foreign markets should protect their supply chain and logistics operations from political risk. Political events often affect operations performed by your business suppliers. Such interruptions include increased tariffs, trade bans, and delays in delivery. In order to protect your business from these types of unforeseen disruptions always have a plan B – have a list of backup suppliers located in other regions. By building relationships with multiple vendors of the same product, you ensure your companies stability in terms of production schedule and budget.

3. Practice politically savvy banking.

An important method of mitigating political risk and avoiding financial loss is politically savvy banking. In the recent years, the world has been nervously observing how the U.S. dollar is becoming more and more reactive to international political events. As the global reserve currency is becoming slightly more unstable, it could be time for international businesses to update their strategies in moving funds around the globe.

One option is to keep money in a bank with branches in the region where you conduct foreign business operations. Another option is an institution that is partnered with a local commercial bank. In many cases, financial operations conducted within one banking system allow better conversion and transfer rates.

Alternatively, while choosing the right regional bank, go for the one that can manage ForEx trading and conversions for you. Finding the right way of moving your money is an important task that requires some thorough research. Your findings may contradict your routine banking strategies, but they could also save you from a huge loss during a time of political crisis.

In order to successfully mitigate a certain political risk, your methods must be tailored to the nature of your business, the nature of the risk, and specifics of your market.

Hence, the last rule:

4. Get advice from locals

Never limit your perspective by avoiding consultation with those players that have experience and knowledge within the region.

Ask questions and learn what works and what doesn’t in a given area. Here we are talking about other businesses and professional trade organizations that spend a huge amount of time and money on research. Before taking radical measures, consider working with institutions like The Finance, Credit & International Business Association, Globe Risk International, Multilateral Investment Guarantee Agency, and Export Development Canada.

An ongoing war in Syria, uncertain Brexit situation, conflicts in the Middle East, rapid Chinese economic development, a growing trend towards economic nationalism – these and many other events promote political uncertainty and instability and they cannot be neglected if you are engaged in international business. Monitoring these events and planning ahead is the best thing you can do to mitigate the political risks of conducting business abroad.

The post Political risks in business: 4 ways to identify and mitigate appeared first on Trade Ready.

From over 25 years of training exporters at FITT, we know that finding partners is one of the biggest challenges businesses face when entering new international markets.

We know that for many businesses, particularly SMEs, not knowing how to successfully enter a global market is also the number one reason international growth opportunities are left unexplored.

So, we decided to address this issue in an interactive way. As we do every month, we took to Twitter for a live chat and brought together a panel of market entry experts from across Canada and the world. We asked the experts all about finding the right partners, from researching the best prospects to negotiating the contract.

Check out the chat recap below to gain their insights and share your thoughts, questions and concerns in the comments below.

Panelists:

Varun Anthony, CITP –  International Trade Specialist based in Mumbai, India (@VarunAnthony)

Samantha Caldwell, CITP –  Associate, Global Trade, EDC (@sg_caldwell) based in Ottawa

Bernadette Fernandes – Official Country Representative, Canada, Africa Trade & Investment Global Summit (@on_the_varanda) based in New Brunswick

Matthew LaRiviere – Project Manager, Marketing, Canadian Commercial Corporation (@Matt_Rivs) based in Ottawa

Robin MacNab – {Retired} Trade Commissioner, GAC (@RobinMacNab) based in Waterloo

Siddha Param, (@siddhaparam), Consultant, author and speaker with Strandridge.com based out of Winnipeg

Here’s a good place to start. Why should businesses consider forming a strategic alliance with a business partner in their target international market?

A1. Finding a strategic partner is the core to succes in a new market. Whether you are looking at a market for the short or long term you need that on ground partner who knows the regulations, has a strong distribution network, is already established (1/2)

— Varun Anthony (@Varunanthony) April 26, 2018

A1: SMEs can save time and $$ by utilizing a partner already in market #tradeelite

— Samantha Caldwell (@sg_caldwell) April 26, 2018

A1: Complimentary needs, look for joint ventures or partnerships to fill in your weak spots. #tradeelite

— Matthew Larivière ?? (@Matt_Rivs) April 26, 2018

A1: A partner understands the local way of doing business, can provide insights and should know the “right” people. #TradeElite https://t.co/ocBNlTysgh

— Robin MacNab (@RobinMacNab) April 26, 2018

A1: Strategic alliances with the RIGHT business partner: crucial when entering new global markets where you don’t otherwise “know the ropes”, cross-cultural communications, buyer preferences, concerns that @ExportDevCanada can help mitigate @varandanetwork @TCS_SDC #tradeElite https://t.co/iY1bdqETzZ

— bernadette fernandes (@on_the_varanda) April 26, 2018

Strategic partners can have local knowledge, help in reaching industry counterparts, manage shipment within a region #CETA #NAFTA #CPTTP and ability to analyze local trends

— Siddha Param (@siddhaparam) April 26, 2018

Ok now that we know why we need partners – What types of business partners can help businesses succeed in new global markets?

A2 #TradeElite : the best type of partners are businesses in the sector in which exporters are through a strong joint venture, an distribution house, a well established and licensed importer, appointment of an incountry representative who is plugged into the markets DNA (1/2)

— Varun Anthony (@Varunanthony) April 26, 2018

A2 #TradeElite : as you begin to scout for the ideal partner watch out for those fly by night operators who promise you the world of success. It is here that many exporters burn their fingers blindly trusting the words and promises of potential partners (2/2)

— Varun Anthony (@Varunanthony) April 26, 2018

A2: Look upstream and downstream from your product or service, you may have ideal joint venture partners in either direction. #tradeelite

— Matthew Larivière ?? (@Matt_Rivs) April 26, 2018

A2: There are a wide variety: licensing, joint venture, rep/agent, or distributor. Do you require after sales service? #TradeElite https://t.co/ukNUx5Xf1l

— Robin MacNab (@RobinMacNab) April 26, 2018

Searching for potential business partners can be time consuming and costly. How can small businesses find the right partners with more limited capacity?

A3: Canada’s Trade Commissioner Service can provide useful advice on finding the right partner and can facilitate introductions https://t.co/t0AySZ4vtM #TradeElite https://t.co/YgjlnIGbky

— Robin MacNab (@RobinMacNab) April 26, 2018

Q3 #TradeElite : A new exporter/businesses eyes and ears in the global market are their respective country’s trade commissions/embassies/high commissions/consulates. These are your most trusted and one stop shop for understanding the DNA of the country/market you looking at (1/2)

— Varun Anthony (@Varunanthony) April 26, 2018

A3: @VarandaNetwork suggests starting with your local provincial #TradeOffice who already has business relationships/partnerships in global markets you can leverage and save on time. They also offer funding programs to help with costs #TradeElite https://t.co/2ErCoAWikT

— bernadette fernandes (@on_the_varanda) April 26, 2018

A3: I would add, another way of finding partners is Social Media. Do not be shy to communicate what you are doing, have done and plan to do next. #tradeelite

— Matthew Larivière ?? (@Matt_Rivs) April 26, 2018

Which is why we should always be keeping an eye out for great opportunities like these #tradeelite chats! @VarandaNetwork https://t.co/RFT2hqWnaJ

— bernadette fernandes (@on_the_varanda) April 26, 2018

What characteristics should you look for in a “good” international business partner?

A reliable partner with the capacity and willingness to deliver on a agreement is vital

— Siddha Param (@siddhaparam) April 26, 2018

Q4 #TradeElite 1/2: Look for a partner who is willing to stand with you for the long run. True success can be achieved when you look at a global market for the long-run. A partner who has a strong network in the sector you wish to enter, is able to advice you on the challenges,

— Varun Anthony (@Varunanthony) April 26, 2018

A4 #TradeElite : Most importantly choose & look out for a partner who has the strongest business ethics & doesn’t use the backdoor or under the table approach to move around the market. Especially when you look at developing markets. No speed money, no bribes – #Keepitclean

— Varun Anthony (@Varunanthony) April 26, 2018

A4: Look for well-respected partners in global markets, such as Canada’s @TCS_SDC & @ExportDevCanada; if they don’t have the business relationships you need for #Trade, they’ll introduce you to their trusted partner network, both abroad & in Canada #TradeElite @VarandaNetwork https://t.co/UhsvYL31wB

— bernadette fernandes (@on_the_varanda) April 26, 2018

On the flip side – what are some red flags that a potential partner is NOT a good fit for your business?

A5: conduct your due diligence so you don’t have any surprises! be especially careful re corruption #tradeelite

— Samantha Caldwell (@sg_caldwell) April 26, 2018

Unwillingness to discuss challenges and barriers openly, not keeping to agreed terms and timelines

— Siddha Param (@siddhaparam) April 26, 2018

A5 #TradeElite : My biggest red flag is when a partner has an easy solution to the most complex market entry issue. In all probability that partner is using the quick way out strategy & is not being honest. All market entry strategies are filled with hurdles which take time (1/2)

— Varun Anthony (@Varunanthony) April 26, 2018

A5 #TradeElite 2/2: to overcome but surely can be overcome by using the right strategy laid out by the regulators of that country. Conduct your due diligence yet again using the trade commission of your country as they are the most valid source of information your eyes & ears.

— Varun Anthony (@Varunanthony) April 26, 2018

A5: Beware “puffery” like “I am the President’s cousin”, or “the President was my roommate at college”! #TradeElite https://t.co/yBawYYifwI

— Robin MacNab (@RobinMacNab) April 26, 2018

A5: a “partner” who is one-sided & does not take the time to look for reciprocal value for both sides is NOT a partner or a good fit; a partner who isn’t accessible or doesn’t understand your #valueprop or differentiator, NOT a good fit #TradeElite @VarandaNetwork https://t.co/tMMhJORzwr

— bernadette fernandes (@on_the_varanda) April 26, 2018

Once you find a partner who is a good fit for your business venture, what can you do to secure the partnership?

A6: work with legal counsel to write a contract for your new partnership and to protect your company and products. don’t forget to incorporate an exit strategy #tradeelite

— Samantha Caldwell (@sg_caldwell) April 26, 2018

A6 #TradeElite : Keep the trade commissions appraised of your activity in market. They are your eyes and ears on ground. The more you are plugged in to the market when you secure a partner the more you will succeed. It is a relationship – nurture it step by step and constantly.

— Varun Anthony (@Varunanthony) April 26, 2018

A6: Visit them. Invite them to your place of business. Offer coaching/training for their staff. #TradeElite https://t.co/RnbKNWkYwq

— Robin MacNab (@RobinMacNab) April 26, 2018

Do you have any tips and advice for getting the most out of partnership negotiations? Anything to watch out for?

For each agreed term get evidence of capacity to deliver. Do a SWOT analysis of the relationship and a PEST analysis of the country. Explore opportunities in neighbouring countries for comparison.

— Siddha Param (@siddhaparam) April 26, 2018

A7: Be honest about your own weaknesses and gaps and don’t be afraid to trust your gut. If your instincts tell you that something isn’t right, even when everything looks good, it’s smart to be cautious. #TradeElite

— Matthew Larivière ?? (@Matt_Rivs) April 26, 2018

A7 #TradeElite 1/2: To the get the most out of the partnership – stay plugged in, don’t just sign the partnership and walk away, look at the market for the long run, keep your trade commissions appraised, constantly engage with the end consumer, keep those transactions clean.

— Varun Anthony (@Varunanthony) April 26, 2018

A7 #TradeElite 2/2: BE PATIENT when you are entering a new market. Don’t expect to be a market leader in the first few years especially if it is a developing market. Be ready to face the challenges and make it clear to you partner that you face them in a clean and ethical way.

— Varun Anthony (@Varunanthony) April 26, 2018

A7: Check in with the trade reps at your country’s embassy in country X who can warn you of pitfalls, and introduce you to local experts. Link to Canadian reps https://t.co/t0AySZ4vtM #TradeElite https://t.co/uKq5AQ9ysr

— Robin MacNab (@RobinMacNab) April 26, 2018

A7 #TradeElite : make sure a) both parties align on values; b) everyone has an equal voice at the table, no hierarchy; c) outcomes are mutually beneficial, win-win; d) you have face-time with each other; e) you meet regularly to reinforce & revisit @VarandaNetwork https://t.co/dCk4Ivb9RO

— bernadette fernandes (@on_the_varanda) April 26, 2018

Ok, I more Q before we go! What are some things you can do to maintain a positive relationship with your international business partners?

A8: Keep communicating! Once you’ve found a great partner maintain regular contact with frequent check-ins to talk through any problems. This will keep confidence levels high on both sides, and means you can deal with any unexpected issues. #TradeElite

— Matthew Larivière ?? (@Matt_Rivs) April 26, 2018

Q8 #TradeElite : Keep visiting your appointed partner in the country you doing business in, get them over to your HQ, arrange in-house and back at HQ training for partners, develop a strong marketing strategy, look at social media to strongly advocate your partnership in market.

— Varun Anthony (@Varunanthony) April 26, 2018

Keep communications open and like all relationships expect ups and downs which requires a dispute resolution clause to resolve problems and maintain a productive relationship

— Siddha Param (@siddhaparam) April 26, 2018

Finally have an established exit strategy with mechanisms to calculate cost for exit where the market justifies such a move.

— Siddha Param (@siddhaparam) April 26, 2018

A8 #TradeElite : treat your international business partners as an extension of your business and that will establish loyalty & trust from the start; reward your partners as you would an employee for a job well done @VarandaNetwork https://t.co/h80K8ibCIO

— bernadette fernandes (@on_the_varanda) April 26, 2018

Read the rest of the chat and follow future discussions by following the #TradeElite hashtag. And stay tuned for the next #TradeElite chat, coming up Thursday, May 17 at 2:30-3:30PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.

The post How you can find the right partners for market entry success appeared first on Trade Ready.

Such firms are not necessarily large businesses—many small to medium-sized Canadian enterprises (SMEs) are discovering that investing abroad can have many benefits, including:

• Getting better access to foreign markets
• Increasing sales and market share
• Serving customers better
• Joining new global and regional supply chains
• Gaining access to new technologies and resources
• Reducing vulnerability to downturns both in Canada and internationally

Investing abroad: the basics

There’s no one-size-fits-all approach to CDIA, but in general it includes some or all of the following steps.

A word of caution first, though: foreign investing is complicated, so you should always obtain assistance from reputable experts throughout the process.

Consulting professionals in your target market is especially important, since they will be familiar with local investment, legal and tax requirements and can help you avoid expensive mistakes.

1. Decide whether CDIA is for you:

CDIA may or may not be a good bet for your business even if you’re already exporting. Ask yourself questions such as: Does it fit my international business strategy? Do I have the resources to set it up and sustain it? Does its potential outweigh the risks involved? If the investment isn’t a good idea, now is the time to find out.

2. Find the best market:

If you’re already doing business in a particular market, investing there may be the logical next step. If you’re looking to invest in a new market, research it very carefully and, as mentioned earlier, consult local experts about its foreign investment climate. Some countries encourage incoming investment but others can be less hospitable.

 3. Choose your investment approach:

Three of the most common approaches to CDIA are as follows:

• You set up a foreign affiliate by establishing a new business in your target market. Depending on your company, this could be as modest as a small sales office or as ambitious as a full-scale manufacturing plant. Regardless of size, the affiliate is wholly owned by your Canadian firm but operates as a local company with respect to regulations, laws and taxes.
• You acquire a foreign business. To do this, your company invests in the foreign firm by purchasing its shares and/or assets. To qualify as CDIA, however, the investment has to be large enough to give you significant influence over the foreign company’s activities. If you acquire 100 percent of the foreign company, of course, you have complete control over its operations, and have effectively acquired a wholly owned affiliate without building it from the ground up.
• In a merger, you establish or already have an affiliate in the target market. You then combine that business and a local company into a new firm that owns the resources of both companies. Both the original businesses disappear and your new firm continues as their successor. As with an acquisition, the new business functions as a wholly owned affiliate of your Canadian parent company.

4. Choose your investment and carry out due diligence:

At this point, you decide where to put your money—into an affiliate, for example, or into merging with or acquiring a local company. Before going ahead, though, you absolutely carry out due diligence. This can range from financial and credit checks to looking at local foreign-investment rules. Again, professional help will be indispensable.

5. Make your investment:

This is where you sign contracts and pay out money. The importance of getting the contract right can’t be over-emphasized, since it will help you avoid difficulties that can range from language issues to tax problems.

You should also be aware that the way contracts are negotiated in North America or Western Europe can be very different from the way it’s done in other cultures.

For both these reasons, you’ll need trusted local counsel to help you manage the process successfully.

6. Protect your investment:

Whenever you have assets in another country, you’re implicitly accepting some level of risk. You can reduce this by careful planning and scrupulous due diligence, but there may still be residual hazards that are out of your control. You can protect yourself against them by using various types of insurance, which can cover risks ranging from expropriation to breach of contract.

Want to learn more about investing abroad? Watch a video with me and Dominique Bergevin, and then visit EDC’s Invest in Foreign Markets pages.

Have you ever invested abroad? In which markets did you invest, and what was your experience? Share below!

The post Six steps to investing abroad appeared first on Trade Ready.

Last year we published a run-down of the top 10 international trade books for importers and exporters to sink their teeth into, and gain some practical information on the actions of trade and the larger global trade environment.

This year, we’ve broadened the scope of our recommended selections to include books and online guides covering specific aspects of international trade, and business success in general, to dig a little deeper into the issues that international businesses face heading into 2018.

This year’s top 10 includes guides to building a diverse company, preparing to do business in complex cultures around the world, evolving your business alongside the rapidly changing technology landscape, and much more.

So, dive into the virtual book shelf below and get inspired, educated, motivated and energized for the year ahead. Enjoy!

1. Kiss, Bow or Shake Hands

Touted as “your must-have guide to proper international business protocol”, Kiss, Bow or Shake Hands is a detailed walk through diverse cultures in some of the world’s biggest emerging markets. Covering over 60 countries in Asia, Europe, the Middle East and Latin America, this book will help reader navigate intercultural encounters, avoiding the pitfalls and missed opportunities that can happen when businesses are unprepared.

2. Doing Business in China: A Guide for Canadian Exporters and Investors

Export Development Canada has helped Canadian companies do business in over 200 countries worldwide. In this online resource EDC has focused on the Chinese market, pouring the organization’s considerable expertise into a comprehensive guide on the complex region. The guide covers China’s business environment, market entry strategies, opportunities, finances and taxation, legalities and delivering to the market. But above and beyond those key topics, the guide also includes links and references that will help you plan and carry out a Chinese export strategy.

3. The Industries of the Future

Considered a leading innovation expert, Alec Ross walks us through the biggest industry changes expected over the next decade and the rising fields that will dominate. Explaining the impacts on digital technology, money and markets, he also tackles the big questions, such as how the very nature of work will change and how rising developing nations will compete with current innovation hubs like Silicon Valley.

Reid Hoffman, Founder & Chairman of LinkedIn says, “Predicting exactly what is going to happen is impossible. But thinking systematically and strategically, as Alec Ross does here, about robotics, genomics, and the codification of everything is absolutely critical. Anyone who wants to understand the key forces that are shaping our economic, political, and social futures will benefit hugely from Ross’s insights.”

4. The Travels of a T-Shirt in the Global Economy

Following the journey of a simple t-shirt as it travels through the global value chain from raw materials through to delivery to a storefront in Texas, and on to its final destination at a used clothing store in Africa, author Pietra Rivoli weaves complex global issues into the travels of a humble tee. Immensely readable, this exploration of the global economic and political forces that affect trade, sources of competitive advantage, ethics and sustainability will teach you a lot about global business.

“Succeeds admirably…T-shirts may not have changed the world, but their story is a useful account of how free trade and protectionism certainly have.”
—Financial Times

5. Driven by Difference: How Great Companies Fuel Innovation Through Diversity

The value of a diverse workforce is now widely recognized across industries the world over. But as author David Livermore points out, “Studies show that diverse teams are more creative than homogenous ones–but only when they are managed effectively.”

Effectively managing a wide range of different types of intelligence, personalities, cultures and skill sets is no mean feat. This book teaches you how to build your cultural intelligence, or CQ, in a practical, tangible way. This is a useful source for any business, but especially one with a global team.

6. From Aid to Trade: How Aid Organizations, Businesses, and Governments Can Work Together: Lessons Learned from Haiti

This book explores the complicated issues developing nations face using the recovery efforts in Haiti following the devastating 2010 earthquake as an example. Attempting to explore the questions of “why after receiving billions of dollars of aid to poor countries remain poor,” and “why are failing foreign aid models used again and again,” from Aid to Trade provides practical solutions to help developing countries grow their economy and become sustainable. The insights from this book can provide valuable information for those exploring the possibility of doing business with a developing nation and the challenges they face.

7. Machine, Platform, Crowd 

When it comes to business, it’s impossible to ignore the exponential progress in technological development. Machine, Platform, Crowd guides us through the evolving technology of machine learning, big data applications, and the power of the sharing economy and crowd sourcing. It also delves into some futurology, mapping out how individuals and organizations of all kinds will use this technology or be outstripped by it and the impacts on our daily lives.

Summed up nicely in this review by Randall Stross for the Wall Street Journal, “This is a book for managers whose companies sit well back from the edge and who would like a digestible introduction to technology trends that may not have reached their doorstep – yet.”

8. The big pivot

The Big Pivot is promoted as a blueprint to help us all navigate the realities of a world facing the severe implications of climate change. Providing 10 strategies for leaders and companies to move forward in a new global business environment where climate change, scarcity and “radical transparency” in supply chains and processes is changing how business is done irrevocably. This book aims to arm business leaders with the strategies and tactics to remain agile and resilient when facing these challenges, complete with exemplary success stories from industry titans such as Diageo, Dow, Ford, Nike and Walmart who have made the shift and reaped the rewards.

9. Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant

Originally published in 2005, this bestselling strategy book has been celebrated over the past decade as the definitive guide to creating “blue oceans”  – untapped new markets free of competition and ready for explosive growth. Now updated and expanded to include new case studies and success stories, the Expanded Edition can help you take your business to a whole new level and, rather than battle the competition, excel in a niche all your own.

10. Scaling Up

FITT has had an exciting couple of years. In 2017 alone we celebrated our 25^th anniversary with Your Future in Global Markets international business conference and formed an exciting new partnership with Export Development Canada. As an organization, we are constantly looking for ways to grow and better serve the global trade community. One tool that has been instrumental in helping us form our business strategy for the years ahead has been this book – Scaling Up.

Scaling Up focuses on the four major decision areas every company must get right: People, Strategy, Execution, and Cash.

“Fast-growing companies ― not small ones or big ones ― create almost all the jobs and innovation in our economy, and Verne has been an invaluable guide to leaders of such companies, like me. Scaling Up helps us put in place the disciplines critical to building a significant business.”- Graham Weston, Chairman and CEO, Rackspace.

Honourable mention: Your Future 2017  – notes

If you missed Your Future in Global Markets, it’s not too late to get in on the insights and practical tips the speakers shared on how to face your future in the international business environment and find business success. In these notes you’ll find the latest tools from Google, statistics and opportunities from the President of Paypal Canada, critical insights on avoiding corruption and much more. Get them for free here.

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