Gaukhar Kydrykhanova’s fascination with international trade began when, as a thirteen-year-old, she developed an interest in the problems caused by illicit cross-border trade. This spurred her to devote many of her initial years as a student to doing intensive research on the issue of international drug trafficking.  

“I learned about the important impact that international trade is making on the regional development and reduced transnational crime. But research was not enough. I wanted to bring in practical change.” 

Gaukhar earned the Presidential Scholarship to complete her Master’s program from the University of Birmingham, UK. Upon her return to Kazakhstan from the UK, she was recommended by the scholarship administration team to be considered for an expert job role at the Kazakhstani Ministry of Industry and Trade. Gaukhar joined Kazakhstan’s WTO accession team on a cold February day, which marked the beginning of an incredible career full of exciting adventures and interesting discoveries.   

Playing a lead role in organizing the women leadership initiative 

Women’s leadership is an essential topic in both Canada and Kazakhstan. Therefore, it was a matter of pride for Gaukhar to allocate her efforts and resources to plan and organize a visit with prominent women in business and female policy-makers from Canada. It was equally fulfilling to see well-known and inspiring women from Kazakhstan come to the event in huge numbers to support the round-table discussions. What followed was a series of illuminating speeches, debates, and an exchange of ideas centered around women’s leadership in Canada and Kazakhstan.  

“Many of the interactions went on to result in interesting projects. But, more importantly, I witnessed a broader change in the wider public consciousness that continues the trend towards progressive and inclusive transformation.” 

Another exciting task she was involved in was building a project with the British Gas company. It was a complex and impactful learning experience as supporting large transnational corporations required a meticulous, all-around approach.  

Facilitating many official visits from Canadian ministers to Kazakhstan 

With Canadian-Kazhakstani relations having significantly expanded over the last decade in multiple sectors, such as IT, Fintech, consumer goods, life sciences, and many others, Gaukhar feels proud to have been a part of this growth. She has played an instrumental role in facilitating many official visits of Canadian ministers to Kazhakstan. Coordinating these visits was often a challenge as it entailed multitasking, attention to detail, strong analytical, organizational, and troubleshooting skills. 

These experiences encouraged her to tap deeper into potential and grow professionally.  

“A few years ago, I was selected for an assignment in the regional offices in Canada. I had an exclusive chance to get exposure to the work delivered by the regional offices in several provinces across Canada. It was an interesting project that has helped me to learn about and take part in the processes that are developed in Canada, before clients’ expansion to the export markets.” 

Follow your inspiration in International Trade 

In her fifteen years of experience in the profession, Gaukhar has learned to persevere in the face of difficulties and always to have faith in her abilities. Her valuable nugget of advice to those just starting their careers is to believe in their talents and face the challenges head-on with confidence and determination. 

International Business training that honed her inter-cultural skills 

Also, coming from a country that is home to diverse cultures, Gaukhar has had vast experience in dealing with people from varied backgrounds. However, taking the FITTskills courses helped her broaden her knowledge on the different cultures and equipped her with the practical skills to hone her interpersonal abilities.  

“I now feel empowered in facilitating more CSR projects and bringing my stakeholders to a new level of success.” 

Understanding international trade finance from a new perspective

Although she found each of the FITTskills courses informative and illuminating, her favourite is the “International Trade Finance” course, as international banking has always been a topic of particular interest for her. The course helped her develop a better understanding of the work that she had been facilitating for many years in partnership with her colleagues from Export Development Canada. 

“This course has helped me understand the processes from the perspective of a bank officer. My interactions and meetings with EDC colleagues in Ottawa, close in-person work with my colleagues from EDC in Moscow, and this course have helped me to understand the perspective of an international banker.” 

Learn how to properly manage your cash flow and mitigate financial risk by selecting appropriate transaction methods and tools for international trade activities. It’s all in the FITTskills online International Trade Finance course.

Becoming a part of a community with shared professional interests, values, and passions 

Gaukhar decided to formalize her knowledge and expertise in international trade by applying for the Certified International Trade Professional (CITP) designation, a globally recognized competency benchmark for business professionals. It would allow her to both learn from a vast network of seasoned international trade professionals and share her own expertise culminated from her decade and a half-long tenure in the profession. 

When Gaukhar’s application was approved in October 2022, she felt truly honoured to join this elite group. Not only would she stay up-to-date with the latest business skills and industry-leading knowledge, but it would grant her greater professional credibility on a new global level. 

“It felt like an important milestone opening the door to take part in connecting with like-minded counterparts, who just like me are deeply passionate in international trade, developing and sharing the best approaches and practices of our profession.” 

Spurred on by her achievement of earning the prestigious designation, Gaukhar is excited at the prospect of new business opportunities coming her way. The credential also inspires her to take on a new level of responsibility and understanding while approaching her clients. It is motivating her to work harder on all her projects. 

We’re excited to see Gaukhar forge ahead with confidence and determination, scaling new heights of success as she achieves all the goals she has set for herself—and more! 

The post CITP Spotlight: Gaukhar Kydrykhanova, Trade Commissioner, Embassy of Canada in Kazakhstan  appeared first on Trade Ready.

Grab a cup of something nice and warm and immerse yourself in our TradeReady reader favourites from 2021:

10 global trade trends we’ll be watching in 2021

We’re ending the year with a popular article from the beginning of the year on 10 global trade trends. In the article, we dove into our international business predictions for 2021—mainly focused on the incredible pivoting that businesses around the world would have to do in order to succeed throughout the pandemic. From virtual trade missions to supply chain as a service (SCaaS) and elastic logistics, there were so many innovations that we foresaw going into use. Read the article to see if we got our forecast right.

Drivers for a circular economy: Why businesses are shifting from linear models to circular economies

In celebration of Earth Day 2021, we discussed the drivers for circular economies—production models that focus on reusing, recycling, repairing, refurbishing, repurposing, or sharing existing materials and goods for as long as possible. Discover the drivers, which include price risks, supply risks, degradation of natural systems, and regulatory trends, and more.

10 Export costs you need to consider when projecting cash outflows

To help readers understand more about some of the common costs in international business and exporting, we compiled a list of 10 export costs that need to be considered when projecting cash outflows. Peruse the list and discover our export cost timeline as well.

What’s the difference between inbound and outbound logistics?

Among the important fundamentals that individuals involved in international business need to understand are inbound and outbound logistics. This article covers the details surrounding the two common exporting terms and gives insightful examples of how you use both when doing business around the world.

A quick guide to international trade organizations

If you conduct international business, there are several main organizations that you need to know about, from the World Trade Organization (WTO) to the International Chamber of Commerce. Discover some of the most important ones, what they do, and how they relate to international trade in this useful article.

The biggest international trade lessons from the Suez Canal crisis

One of the biggest topics discussed in 2021, the Suez Canal Crisis spawned many memes and critical dissections of the international trade ecosystem, especially in regard to shipping and critical shipping routes. Read this article and discover what happened during the crisis and the most important lessons trade professionals can take away from it.

How the Jobs and Growth Fund supports Canada’s economy through COVID-19

It’s no secret that 2021 was ripe with economic stress for individuals in Canada and across the world. Luckily, in Canada, there were several important initiatives that promoted jobs and growth throughout the year in response to the pandemic, important among them the Job and Growth Fund. Learn all about it in this insightful read.

3 common reasons why startups fail internationally (and how to avoid them)

Starting a business isn’t easy. For many, there are mistakes made along the way, but those who plan ahead learn about these mistakes so they can avoid them. In the article, get prepared for global business by reading about 3 common reasons why startups fail internationally.

10 effective techniques for managing requests for discounts in international trade

In our economically turbulent times, requests for discounts are becoming common practice between trade professionals. Managing them, however, requires tact, strategy, and finesse. Learn some of the best techniques from CITP Rahim Mohtaram.

Demystifying market entry strategy: The three key parts of an effective ASEAN entry strategy

Discover how to create an effective ASEAN entry strategy in this article by CITP Peter Gray. With over 20 years of Asia Pacific experience, he discusses everything from SLEPT factors to sales and marketing strategy in this in-depth look at overseas expansion for today’s global businesses.

The post Best of 2021: Our top 10 most popular international business articles from the past year appeared first on Trade Ready.

Up until now, one obstacle standing in the way of more efficient transportation has been the state of traffic management. But, with recent technological advances in traffic data collection and management, information system specialists have managed to bring a new way of thinking about traffic management and global trade to the table.

The Innovations in Traffic Management

Although there are several solutions out there that combat the problems inherent in today’s traffic management systems, here are a few of the top, most promising innovations:

Making Use of Sensors

Before any traffic management innovation can take place, the precursor is generally installing sensors to monitor road conditions and traffic patterns. Traffic surveillance and monitoring are key to obtaining data unobtrusively, which experts can then use to expand upon existing traffic management systems.

These days, sensors come in a variety of shapes and sizes, from Bluetooth to loop detectors to even third-party data, like local weather forecasts and public holiday calendars. Sensors are also used to detect accidents on the road and record immediate conditions. Optical fibres are an example of new sensor technologies currently being tested before full-blown deployment.

Updated Traffic Lights

Since the 1920s, traffic lights have undergone relatively few upgrades. Many have recently begun to finally make the switch to LED bulbs, which are not only more environmentally friendly but also last longer. Because they fade rather than immediately burning out, they’re also simpler to replace before they start causing traffic issues.

LED lights can also be outfitted to square traffic lights, which are generally more visible and therefore present additional precautions when it comes to roadway safety.

Municipalities around the world are experimenting with countdown traffic lights, allowing drivers to better adjust their speeds and pedestrians theirs. Reducing driver doubt in the transition from green to red is essential to optimizing roadway safety. Some newer vehicles, like those manufactured by Audi, are even beginning to install in-car systems that communicate with infrastructure.

Smart Traffic Control

Once sensors are installed, smart traffic control becomes that much simpler. Roads detecting few cars can keep lights green, saving drivers fuel and time. Traffic lights and speed limits can therefore be adjusted accordingly (perhaps in partnership with smart vehicles) to maximize roadway efficiency and safety.

Although aided by cameras, sensors, and other technologies, for now, traffic management centers will play an important role in the implementation and wide-scale rollout of smart traffic control methodologies.

How These Innovations Could Improve Global Trade

The implications of these innovations create obvious time, fuel, and cost-saving advantages for those managing ground transportation supply chains. They also have far-reaching environmental benefits, potentially lowering carbon emissions through decreased driving and traffic times.

They also have implications for ground transportation risk mitigation strategies.

We’ve already seen the importance of risk mitigation within the shipping industry—especially with current COVID-19-related port congestion issues and delays and the past year’s Suez Canal Crisis—so, many businesses are also taking care to avoid costly lawsuits and PR disasters by mitigating product liability for ground transportation as well.

Safety concerns are becoming more palpable but also more measurable. Purchasing global insurance policies and investing in appropriate infrastructure is one way of handling liability concerns. Another is to invest time and energy in smarter vehicles and traffic management, reducing the risks involved with the respective parts of the supply chain.

Learn more about how to manage your company’s supply chain and reduce risks with the FITTskills Global Value Chain course.

The Intersection of Global Trade & Traffic Management

The more well-educated professionals who join the ranks of traffic management innovation, the faster the technologies will be able to progress and expand beyond their current reach. Information systems professionals entering top industries, ranging from air travel to manufacturing, are working to increase the efficiency of global trade alongside global traffic.

As a result, great strides have been made in the areas of real-time traffic feedback, Vehicle to Infrastructure (V2I) technology, and pedestrian tracking systems. Wyoming’s pilot V2I program communicates inclement weather conditions and road disruptions to drivers statewide, for instance. The positive impact of installing these systems in every freight vehicle is massive, not only potentially preventing devastating accidents and crises, but general delivery delays and traffic too.

The effects of these innovations in traffic management extend far beyond their initial scope. With wide-reaching economic to environmental impacts, traffic management is being used to address a myriad of issues, from lowering vehicular carbon emissions to increasing pedestrian safety to expediting the shipping processes of global trade. In addition to new practices that allow you to take control of your own supply chain and empower the planet, your import-export business and clientele are sure to benefit greatly from enhanced traffic management practices.

Did you know that the The International Chamber of Commerce Incoterms^® rules are used in contracts to clearly communicate the obligations, costs, and risks associated with the transportation and delivery of goods, providing clarity for sellers and buyers to help facilitate trade? Learn more with  The Incoterms^® 2020 online course, presented by FITT and the Canadian Chamber of Commerce (CCC) to fully understand how they work.

The post How Ground Traffic Management Innovations Could Improve Global Trade appeared first on Trade Ready.

The word ‘globalization’ evokes strong sentiments in our current times. For some, it represents a practice that has been occurring for centuries: trade between countries, while for others it means the loss of jobs, offshoring, protectionism, and geopolitical tensions. With the onslaught of the pandemic, these tensions have become more prominent, but they are also opening doors to meaningful and important conversations about the evolution of global business and trade.

Recently, FITT hosted an event with Stephen Poloz, CITP, Special Advisor at Osler, Hoskin & Harcourt LLP, and the former Governor of the Bank of Canada to discuss the future of globalization. He noted that it is not a black or white scenario and much of the backlash against it can be attributed to a variety of factors often overlooked by mainstream politics and media. Poloz’s upcoming book, “The Next Age of Uncertainty: How the World Can Adapt to a Riskier Future,” touches on a few of these topics, while for our event, he specifically dove into the foundations, risks, and solutions to post-pandemic globalization.

The event was hosted by Caroline Tompkins, CITP, President and CEO, FITT and moderated by  Alberto Quiroz, CITP, President, Intellimeter Canada Inc. and Chair, FITT Board of Directors, and garnered some excellent questions and insights into the topic.

Read some of the most fascinating excerpts and quotes by Stephen Poloz from the event transcript below:

Globalization, COVID-19, and the effects on the global economy

“There’s no doubt that the pandemic has shaken our foundations. It will have permanent effects on the global economy and on how we do business. But much of what I have to say today was in motion long before COVID-19 came along. The pandemic might have accelerated some of those things, but they were already there and they were destined to affect our future.”

Economic Resiliency

“Just to illustrate, here in Canada, the economy did shrink by about 20 percent last April to May (2020), which is a pretty big number—but it’s not maybe as big as I might have thought. You know, if you shut down the whole economy, would you expect that around 80 percent would just keep running? That surprised me a little. The declines in the economy here in Canada lasted only two months as the economy began to grow again in June, last year, and by the fall we were operating at 97 percent of pre-pandemic levels of economic activity—and right now we’re 98 to 99 percent of pre-pandemic levels. You wouldn’t know that probably by watching the news.”

Erroneous comparisons to The Great Depression

“We’re hearing mostly about the sectors that have been hit directly by the COVID-19 shutdown…but the key to this is that each time we have closed the economy, the unaffected sectors have continued to do well. There’s been no spread of the negative sentiment from the directly affected sectors to the rest of the economy, and this is exactly why those comparisons last year to The Great Depression were so inappropriate and actually totally misleading. A recession happens when your next-door neighbour loses their job and they cut their spending and, when you hear about it, you cut your spending too because you’re worried that you might be the next one to lose your job. Well, not in this case. We had very fast policy responses—monetary policy and especially fiscal policy—and not to mention the fact that our banks allowed people to take holidays from paying their mortgages. These were really big buffering actions and they enabled us to stop the clock in certain sectors and allow the rest of the economy to continue to run. This is exactly why economists have been pretty uniformly surprised at each stage of the global recovery.”

Sources of discontentment related to globalization

“The source of this discontent, I think, the most important one, is rising income inequality. Data from the UN shows very clearly that income inequality has risen for over 70 percent of the world’s population over the past 30 years. The reasons for this vary from country to country, but the common denominators are technological progress, rising corporate concentration, eroding labor bargaining power, and, of course, globalization—and all these things actually tend to go together. There’s a lot of research on this question and as an economist…it’s quite clear that the root cause is actually technological progress.

“Technological change has been a constant throughout human history, as we know, from the very beginning, but it’s been punctuated by three major waves of change and we call those industrial revolutions. These were the steam engine during the 1800s, the spread of electrification in the early 1900s, and the deployment of the computer chip beginning in the late 1970s. Each of these technological leaps has delivered untold benefits to society in terms of quality of life, productivity, and of course income, but, at the same time, companies have had to adapt to new technology or be forced out of business—that’s highly disruptive. These disruptions are particularly hard on people, on employees… many of them lost their jobs permanently, even though many new jobs were being created in the background.”

“A key feature of all three industrial revolutions is that the economic benefits of the new technology do not get spread around. You might imagine it being spread around like yeast, you know getting into every crack so everybody gets some. But instead, the benefits to technological progress tend to pop up more like mushrooms. So, not yeast— mushrooms and then the mushrooms get collected by a few large firms and firms get bigger as a result. So, historically technological change has also always been associated with rising income inequality and worker discontent and, of course, opportunistic politicians are tapping into this discontent.”

The third and fourth industrial revolutions

“Notice that the peak period of adjustment to the third industrial revolution also corresponds to the peak in the globalization wave that followed China’s entry into the WTO. So, during the past generation, we’ve got these two major forces that are helping to contribute to rising income inequality. Now, politicians, it seems, prefer to point to globalization as the main reason for rising income inequality. Maybe it’s easier to identify—displaced workers can certainly identify—that there’s foreign competition perhaps that has caused their displacement. And, of course, it’s deceptively easy to fix. You just impose tariffs to protect people from the disruptions.”

“But let’s just take a moment to walk through the full impact of a technological leap. Firms deploy the new technology and, of course, as we know, people lose their jobs because of that new technology—and the companies make a bigger profit. New jobs in the new technology, they make good money too. Income inequality rises—absolutely it does—because many people are disrupted and don’t have work at all. But now two things happen: prices fall—prices of all the things that use the new technology fall—because the companies are more efficient. So, purchasing power of people with incomes rises significantly and the people who are making big money from the innovation spend their purchasing power too. So, those two channels of spending create jobs across the entire economy: that’s people who don’t just make, let’s say, cars, but people who build houses, people who are plumbers or electricians or furnace repair people. All these kinds of jobs are created because the level of income throughout the economy goes up that creates new jobs in the economy that no one, and I mean no one, points to as a benefit of technological progress.”

“You could ask exactly the same question about the full and complete effects of globalization and the story is exactly the same as it is for technological progress. Firms make money, prices fall, purchasing power rises, jobs are created that, again, no one points to as a benefit from globalization. So this basic confusion is what I think is driving political polarization around the world and causing politicians more often to intervene in trade.”

The third and fourth industrial revolutions and the “K”-shaped economy

“We’re now just entering the fourth industrial revolution and that’s the digitization of all parts of the economy. AI, bioengineering, and amazing leaps in technology…. COVID-19 is for sure accelerating the adoption of new technology in all kinds of dimensions. This points to what I call, ‘K’-shaped economy…in other words, people who are being disrupted go to the bottom part of the “K,” the rest of the economy grows well into the top part of the ‘K.’ We look at the economy as a whole—it may look more or less normal, but beneath the surface, there’s a lot of pain in some areas.

“This is going to become highly political and therefore increase political polarization and the inability, given that polarization, for governments to really forge a consensus around the policies that would actually address inequality—that would be major tax reforms, as I’m sure you’re aware. It’s going to lead to more intervention in the global trading system, as a sort of second-best, and, I think, generally counterproductive way to manage political risks from those discounted, discontented individuals. And, it’s going to lead to haphazard trade policies that will fuel geopolitical tensions because every trade policy that you put in place in one country affects another country. That makes the global trading system inherently unpredictable and riskier overall—with the root cause being is rising income inequality that’s coming from that technological wave now.”

How trade-dependent companies can adapt to a riskier trade environment

“Higher risk in general means devoting more resources to active risk management. It means more frequent use of scenario planning and updating those scenarios frequently—not just once a year to prove to the board that you’re on top of your risk, but rather to develop them every time the starting point is changing… to do a whole new set of scenarios, have it all automated so you can keep them up to date. It means the company needs dedicated resources to risk management. A firm that does a good job with risk management will create more shareholder value than one that does not.”

To me, risk management is like a new form of intangible investment— like the way companies invest in their brands or the way they invest in their employees. It’s a cost item. It doesn’t look like equipment or real investment but, believe me, it is because it pays off year after year.

Why de-globalization and automation aren’t favourable risk management strategies

“What will companies do in practical terms? Well, it’s a few options and I always want to run through them even though maybe one or two of them are just strawmen:”

Reshoring and de-globalizing

“The first option is to avoid it all. You can reshore everything, you can de-globalize the company. Now, this is seen by many as the ultimate form of de-risking, and the governments who are advocating for disruptions of international trade love it because it seems that it would create local jobs, for example. Creating a lot more local jobs—building, for example, household appliances—well the tariffs that the U.S. put in place to try and encourage reshoring of household appliance manufacturing added pretty close to a thousand dollars per year onto the costs of every American household. Now, this is money that was no longer available [for citizens] to spend on other things, including things like, let’s say, upgrading their kitchen. Now there are lots of lost jobs in the construction sector because people no longer have the resources they would like to have to do put a deck on their house, so those jobs that are lost in the construction sector will not be identified as a side effect of a policy designed to reassure the manufacturing of appliances into the United States.”

Automation

“The second option that companies might consider is full automation. So, given higher domestic wages, partial automation is always part of reshoring. Okay, so you reoptimize. You bring stuff onshore, wage costs are higher, so you figure out what’s the appropriate capital-labor ratio and, of course, you buy a few robots to compliment the people who are on the line. The point is that you may not create as many jobs as the politicians were hoping you would—but the full risk management strategy may be able to make a plant full of robots and a handful of technology exports. So, you could just have all robots and just a few folks running the system with a mouse. This is the ultimate backfire for the politician, so there is always a risk that something else will change after that optimization happens. So, the full automation option…I don’t think it’s the way to go, but I do think that to the extent that reshoring is forced by government policies, one of the downsides for the strategy is that there will be lots of automation that happens in the process and so fewer jobs will be created domestically than originally imagined.”

Why we should keep supply chains as they are but manage the risk differently

“The third option which is starting to sound more appropriate is to keep the supply chains as they are but manage the risk differently. So, you preserve the value that’s being created in the global value chain but perhaps give some of it back in order to manage the risk.”

Globalization has always been portrayed as just black or white. You know, either you’re globalized, or you’re not globalized—either you’re doing trade you’re not doing trade. Well, a supply chain was always going to be fluid and a living thing and re-optimized often. An optimal global supply chain requires full product fragmentation and each fragment of the process matched with exactly the right skill set and the wage cost in some other country. So, when relative wages change, the optimal suppliers of some fragments will change and therefore the supply chain needs to be continuously revised as we go through time.

Ways to manage trade and geopolitical risk

“So, what we need to think of is trade risk or geopolitical risk. Call it what you want, it’s just one more cost or cheap thing that can change that forces a company to re-optimize that global supply chain. So, re-optimizing the supply chain more often or more continuously—that’s, of course, going to cost money but it’s a form of insurance against the risk that we’re talking about. Re-optimizing the supply chain can be thought of as right-shoring or best-shoring if you like. So, practical examples would be create redundancies to reduce risk so if you have to you have one fragment of the process reliant on one supplier, well, find a second supplier and run the system with two suppliers in two different countries for exactly that same fragment. That’s just a risk mitigation strategy. It might cost a little bit but that’s a small cut price to pay in exchange for having a place you can go when something goes wrong because of geopolitical tensions at the top.

“Secondly, build flexibility into contracts with suppliers from the beginning, so that you’re not committed for a long time so the continuous scenario analysis or business continuity planning allows the movement from one supplier to another.”

“The third sort of thing that we hear about is nearshoring that’s exploiting nearby trade agreements that offer legal protections for the firm. So, for Canadians, for example, you know using Mexico as a supplier instead of a producer out in Asia maybe gives you more protection just because CUSMA is going beyond all this.”

Want to get more insights from the event? Watch it here:

The post Post-pandemic globalization: Practical strategies for managing a risky trade environment—event recap appeared first on Trade Ready.

From my more than 20 years in Asia Pacific experience, I believe the 3 key parts of an effective ASEAN entry strategy are as follows:

1) Strategic planning

2) A sales and marketing strategy

3) A channel design process.

1. Strategic planning

Strategic planning is about identifying and deciding where and how to compete and, more importantly, determining how to win based on keen analytics, facts and logical thought processes. We want to minimize assumptions and biases as best we can to reduce risk exposure.

This all starts with marketplace research and analytics derived from both secondary and primary data. This needs to go well beyond basic and generalized economic data such as GDP. The GDP formulation is simply Consumption + Investment + Government Spending + Net Exports. It doesn’t peel back the onion layers of a market, nor does it tell us where we fit in the GDP formulation.

Companies should include a comprehensive macro-analysis, including social, legal, economic, political and technological factors (known in the marketing world as the SLEPT factors).

In brief summary

Social and cultural factors shape consumer and customer behaviours.

Legal encompasses compliance and IP related issues—obviously, we need to make sure we meet product compliance standards and properly register our trademarks and copyrights.

Politics drive Economic as well as trade and investment policies (which should influence business decisions).

Technology refers to market sophistication, technology adoption and the competitive landscape.

The strategic planning process must also include micro-analysis to help select the best markets based on economic opportunity, the probability of success and ease of entry. Things to consider are market size and addressable market (your target customers), segments, key competitors and potential customers.

I cannot emphasize strongly enough how important it is to vet the SLEPT factors. For example, Singapore and Malaysia are bordering nations and members of ASEAN, but they’re very different in the context of SLEPT factors. What works in Singapore might not work in Malaysia.

Secondary data sources

Regarding secondary data sources, there’s lots of free stuff available online, but paid subscriptions are better. In any event, companies need to review samples and select the best resources for their unique purpose and business needs. Personally, I use multiple sources and cross-reference them to ensure accuracy. Moreover, we need to be able to convert raw data into meaningful information—otherwise, it’s just useless data without direction.

Primary data sources

With regards to primary data sources, at some point, you need to validate secondary data via a reconnaissance mission. You need to be in the marketplace to feel the pulse and vibe of the people you want to sell to.

Trade shows rule in Asia and are restarting. But rather than participating in a mega Asia-Pacific tradeshow in Singapore, consider participating in a country and industry-specific trade show.

For example, if your target country is Vietnam, and you’re selling building materials and supplies, participate in a Hanoi or Ho Chi Minh City construction trade show. The reason being that 100% of the participants will be from the market you want to develop. Plus, intraregional travel to attend trade shows will be somewhat hampered due to the COVID-19 situation.

• As I mentioned, trade shows in Asia are restarting and I’m sure trade show costs will be favourable, as will travel expenses as the markets restart and recover later in the year.

• Participating in the right tradeshow leads to channel partnerships and accesses potential customers. I would suggest you stay a week after the trade show to follow up on gleaned opportunities, and take the time to visit potential and competing distributors.

• Survey the voice of potential customers (VOPC) and determine whether there is there a gap in the market and a market in the gap.  This is a crucial step to aligning product mix, positioning, pricing and your sales and marketing strategy.

• After completing your analysis, you may very well decide to enter one or two markets to start with—but that’s okay. It’s important not to overextend by allowing your ambitions to exceed your capabilities.

2. Sales and marketing strategy

Ultimately, you need to define your differentiated and unique value proposition and execute your strategic plan through an effective sales and marketing strategy.

I recently wrote a Forum for International Trade Training (FITT) article about selling in the ASEAN region. I felt that there were lots of international trade, strategy and marketing articles on how to successfully enter and develop new markets. But there were very few about B2B selling. I think we need to realize that eventually someone, somewhere in a faraway land actually needs to sell something to make it all happen. So selling is important.

Selling in an international marketplace is very different and involves cross-cultural or multicultural selling. What works in a domestic home market is usually very difficult to replicate in an international setting. A marketplace like the ASEAN region is highly fragmented, hyper-competitive and contains many multinationals and a myriad of local producers all competing at varying levels of quality and price points. Companies need to establish themselves as a partner of value and rise above the crowd of competition.

As such, companies should not underestimate the importance of high-calibre salespeople and should invest in the right people, the right selling methodology and process, and also the supporting Customer Relationship Management or CRM technologies. The article I referenced earlier can explain different selling methodologies that you may want to consider. But, speaking from experience, how your salespeople—agents and intermediaries— sell will make the difference between exceptional or mediocre results. Some of the things to keep in mind include the following:

• The ASEAN marketplace is not just about products and price points, it’s about buyers and relationships founded on symbiotic trust, confidence and collaborative partnerships.

• As an example, in the West, salespeople can build relationships as they’re selling. In Asia, relationships come first and usually before the business. Establishing trust, confidence and credibility is important.

• Companies should not take a blanket approach to a trade region like the ASEAN. Each one of the ten countries has its own unique nuances and cultural norms, perceptions of value and buying behaviours.

• When you set-up a distribution, don’t just train them on product knowledge. Support them with training on how to effectively and efficiently sell your products using your sales methodology and process. Then, co-develop the biggest and best customer opportunities.

• Selling cycles are usually longer, especially in complex, high-value B2B selling. They generally involve multiple stakeholders, a hierarchical decision-making process, with decisions being reached by consensus and usually approved at a senior level. So be patient.

Example of a selling methodology and process

With respect to marketing, it can be challenging for any company to unify marketing and sales teams that are operating in different continents. Companies must clearly define individual and shared responsibilities and accountabilities. Marketing and sales, together, should establish and execute the best practices to reach and connect with target prospects, and sales should qualify and convert these prospects into customers. Companies must avoid siloing and misalignments and establish collaboration to rally around a unified and focused goal—which is to sell and help sell.

Technology is playing a huge role in international sales and marketing. The globalization of technology and the ease of connectivity and accessing information has created a global marketplace of sophisticated, tech-savvy and discerning customers. A marketplace like ASEAN is digitally engaged and technology proficient, so integrating digital marketing into your overall marketing strategy is crucial.

Use social media wisely; it’s a valuable tool. But instead of posting a cut and paste product image and call-me-if-you-need-me advert, consider posting a customer experience that mattered and how you made the difference. Then direct that to a landing page featuring the customer gain story, and allow that to evidence how you can help others leading to new conversations.

3. Channel design process 

If you’re selling B2B internationally, you’ll need channel partners to help sell your products. Designing a channel or distribution network is about building an effective integrated multi-channel network that accesses target segments, optimizes customer reach and accelerates market penetration and growth. Channels should be appointed before pursuing customers. It’s also important to recognize that channels own the end-customer relationships, and companies need to tap into these established relationships in order to scale.

Your channel partners should be selected based on their ability to access your target segments and customers, their financial resources to support market entry and growth, and their sales and marketing competencies and learnability to proactively sell your products.

Partnering is reciprocal; channel partners seek products that are innovative and saleable and provide an equitable return on effort and investment. Moreover, they seek partners who are willing to participate and adapt to their unique marketplace and support their needs. From a distributor’s perspective, they’re sharing their treasure trove of customers, and they’re very cautious about doing this. So, building trust is crucial—and this can take some time. With careful planning and use of these methodologies, success with them and within the region is certainly attainable—and lucrative.

The post Demystifying market entry strategy: The three key parts of an effective ASEAN entry strategy appeared first on Trade Ready.

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

This article reveals the potential delays and issues that businesses could encounter in the aftermath of the pandemic, from contracts and insurance problems to custom clearance and force majeure cases.

8 helpful tips to improve your customer service quality

The level of customer service your business provides greatly impacts its success. In this article, discover useful tips for improving customer service using feedback, cross-selling, referral programs and more.

9 factors exporters should consider when selecting sales channels

From market location to local business practices, international trade practitioners need to consider several important factors when choosing their sales channels for the distribution of products and services. Learn about the most important ones in this article.

Top 10 most read global business articles of 2019

Last year had some great reads too! This article covered the top ten most popular articles from 2019, giving insights on important trade-related topics that readers loved.

9 ways to reduce the total costs of customs clearance

Customs clearance is an expensive aspect of international trade, but there are many ways to reduce the costs. Learn effective strategies and steps businesses can take to make this process cheaper. 

Choosing the wrong Incoterms® can mess up your contract – here’s how to get it right

Understanding Incoterms® is a critical part of ensuring your contracts and business agreements run smoothly. See how to avoid some common mistakes when using them.

The state of Canadian SMEs involved in international trade

Are you a Canadian SME involved in international trade? This article is a must-read for understanding where small and mid-size Canadian enterprises and businesses are thriving and lagging on the international stage. 

China too risky? Do you need a new strategy for your FDI in the face of COVID-19?

COVID-19 has forced many businesses to re-assess their global strategies over the past year. Get insights on Asia development in the aftermath of the pandemic and see why you should option the ASEAN region.

Act now to minimize your political risk in foreign markets

Political changes in international government can spell big trouble for businesses operating in various regions around the world. To adapt to the disruptions, companies need to make rapid adjustments when these changes occur. Learn some effective strategies for minimizing political risk in foreign markets.

10 things you can do from home to boost your export business

The pandemic has severely limited regular routines for SMEs around the world. However, there are still many things individuals can do from home to support their business during the coronavirus crisis. See which steps you can take from home to foster growth during this time.

The post Best of 2020: Our top 10 most popular international business articles from the past year appeared first on Trade Ready.

Graham began his career in international trade as a small business consultant, gaining valuable experience for his next role as lead consultant of the Global Business Centre, launched by Global Affairs Canada. The centre had been initiated with the aim of supporting Canadian import/export businesses, and his new role provided him with the perfect opportunity to build on his earlier experience. 

“As the lead consultant of the Global Business Centre, I used my foundation of small business fundamentals to build further knowledge and experience working with trade-related businesses.” 

Nothing more satisfying than watching clients take their project from concept to fruition  

After having worked with several hundred businesses over the past five years, Graham has accumulated many interesting stories to tell. The most rewarding of those is hearing back from clients who have either successfully made their first shipment to an overseas customer, or who have successfully received and sold imported goods. 

“I have assisted many early-stage clients.  Seeing them move from the idea stage to execution is very rewarding.” 

Developing trade-related resources and researching target markets 

The launch of the Halton Global Business Centre has been one of Graham’s most interesting projects. What made it particularly challenging was creating a strong value proposition and a library of resources for businesses engaged in trade. It allowed him to work with trade professionals at the provincial and federal levels, as well as a wide range of businesses from start-ups to established international companies.  

Also among his proudest accomplishments has been developing the Foreign Direct Investment for the Town of Halton Hills. This gave him the opportunity to think outside the box and apply his international trade knowledge in a different way. This included researching key target markets, developing investment business cases, identifying leads and planning trade missions.  

Valuable lessons Graham has learnt from his journey in international trade 

Always do your research and don’t re-invent the wheel if you don’t need to.

According to Graham, there’s a lot one can learn and appropriate by simply studying how other companies manage their trade activities.  

Always maintain focus and set realistic goals.

It’s best to focus on the core task rather than trying to do too many things at once. For example – exploring several markets or products simultaneously drastically reduces chances of success. 

The importance of investing in ongoing professional development

Completing the FITTskills courses provided Graham with a solid overview of all aspects of international trade. What impressed him the most is how the training familiarized him with the myriad processes of international trade, giving him a more wholesome understanding of the topics. 

The whole spectrum of activities is covered, along with lots of pertinent case study examples and critical thinking exercises. The content was immediately applicable to my clients.

The self-directed study method and the flexible process worked well with his schedule and enabled him to complete FITTskills training exactly as he had planned. 

The Global Value Chain course was a highlight and a particularly pithy course. It was quite challenging, but also addressed the major questions that my clients have related to distribution, inventory and logistics.

Preparing for the transition to international trade consulting 

Graham felt that it was time to expand the scope of his career from small business consulting to offering consultation services at an international level. He believed that earning the elite CITP®|FIBP® designation would validate his international business knowledge and make the transition to international trade consulting a smooth one.  

Equipped with an international credential, Graham feels greater confidence in his knowledge and skillsets and better prepared to take on new international trade initiatives.  

Having the CITP designation will certainly indicate to others (foreign investment influencers, overseas business leads, etc.) that I have a solid foundation of knowledge in international trade-related matters. I also foresee being able to tap into the established network of CITP professionals as a significant benefit as well.

The journey ahead looks to be full of promise for Graham as he continues to guide businesses to achieve their goals, helping the economy thrive and prosper.  

The post CITP Spotlight: Graham Lowe – Senior Economic Development Officer appeared first on Trade Ready.

For Rodrigo Osorio, it all began in Shanghai, China where he was working to develop his Chinese language skills in a corporate environment. At the time, he came across a position at an international trading company doing business between the Americas and China. This presented itself as a win-win opportunity for him, as it would not only help him further hone his Chinese language skills, but also allow him to leverage his fluency in Spanish to communicate with clients. It was this exposure that formed his interest in international trade, and since then there has been no looking back. 

“The exposure the procurement position gave me to Chinese and international business when visiting export expos such as the Canton Fair, various supplier factories, and trade negotiations immediately gave me a passion for the industry.” 

Opening his eyes to opportunity

Attending the Canton Fair in Guangzhou, China proved to be a turning point in Rodrigo’s career in international business. The eye-opening experience drove home the fact that China was an important player in global trade and this could surely open the doors to greater business opportunities with countries and continents across the world.

“Physically seeing the number of suppliers and products at the Chinese Expo illustrated the importance China has and will have in the business world, where there will surely be even more business opportunities opening between the country and the Americas.” 

How knowledge of Chinese facilitated important negotiations 

According to Rodrigo, one of his proudest professional accomplishments was conducting trade negotiations with suppliers in China on behalf of buyers who could only speak Spanish. It was his efforts and commitment to learn the Chinese language that made possible his professional achievements in the form of successful discussions and business deals. 

“Studying Chinese has been a huge investment of resources and time, so being able to use it as a tool in a professional environment is a super rewarding accomplishment”  

A piece of career advice from Rodrigo – “Learn as much from various business sectors as you can” 

International business spans every industry we can think of, which means that there’s much to learn from the various sectors. As a business professional, it’s essential to take advantage of the wide exposure to diverse industries and try to grasp the nuances of their products, market trends, and strategies. Gathering industry-specific knowledge is key to assessing potential business ideas and making plans for future ventures.  

“Whenever a client or supplier approaches you with their product, take the time to understand their market and competitive advantage to identify possible business initiatives.” 

It is perhaps this desire to better understand the various aspects of international business that prompted Rodrigo to formalize his professional experience into a solid foundation in global trade. Therefore his logical next step was to sign up for FITTskills courses to build upon his business skills and drive career growth.  

Completing the FITT courses allowed me obtain an understanding of valuable terms and transactions important in international business….

Not surprisingly, Rodrigo’s favorite course is International Trade Finance, as it helped fill all the gaps between finance and international business functions.  

I enjoyed International Trade Finance the most as it provided me with a deep understanding of how transactions are conducted and how risk is handled in international business.

Earning a designation that spells competence and credibility  

After completing his FITT Diploma in International Trade, Rodrigo went on to apply for the CITP®|FIBP® designation to achieve the benchmark for excellence in international business and trade that earning it brings. The designation demonstrates proficiency in both theoretical and practical aspects of international trade, thus recognizing the credential holder as an expert in his field.  

For Rodrigo, the FIBP® designation marks the culmination of several years of dedication, discipline, and hard work. It spurs him to continue using his skills and experience to challenge his abilities and advance his career.  

It’s very pleasing to see my dedication to excellence in both work and study throughout the years come to fruition.

Opening up new possibilities as an FIBP®   

The value of the FIBP® designation is that it validates his industry-backed competence as a global trade professional to his clients, partners and peers. Rodrigo believes that the credential greatly enhances his profile and will therefore open windows to new possibilities. 

Currently working as Procurement Manager at Asia Grupo, Rodrigo continues to use his skills and experience to help companies in Latin America accomplish successful business transactions in China.  

We’re confident that Rodrigo’s efforts and talents will open many doors for him and take his career trajectory ever upwards in the years ahead.  

The post CITP Spotlight: Rodrigo Osorio – Procurement Manager at Asia Grupo appeared first on Trade Ready.

One of the surest ways to increase your business profits is by minimizing your supply chain costs. To do so in a way that also enhances your supply chain efficiency, however, you need to know exactly where to look. Let us look at 5 simple strategies that help in decreasing supply chain costs.

1. Use weighing technology

One of the most important processes in the supply chain is the weighing process. You must have the right weighing tools, such as modern weighing scales, in place to increase the efficiency of the supply chain.

There are a variety of weighing scales that you can use. For instance, truck scales allow for seamless operations when platform scales are not accessible. You can weigh the truck’s gross weight and payload weight with high accuracy.

Weighing technology increases productivity by ensuring that the truck carries the right weight from the moment you load it. Moreover, portable trailer weight scales increase safety as they guarantee that trucks do not carry more than the permitted weight.

2. Implement good inventory management practices

Proper inventory management techniques can bring down supply chain costs. Your profits may take a hit from under- or overstocking, incorrect stock picks, and trading errors. Not having a sound inventory management plan may result in steep, unnecessary costs.

You need to create an inventory management strategy that includes factors like a strategic procurement plan and failure analysis. You need to draw up measures for instances where anticipated mistakes can occur.

If you don’t have a well-developed inventory management strategy, you won’t be able to spot inefficiencies, nor discover potential cost savings.

3. Manage your labor intelligently

One of the most effective ways to bring down supply chain costs is by managing your labor intelligently. Labor management includes steps like defining clear communication initiatives, process forecasting and creating a market demand analysis.

Inefficient communication strategies may result in missed shipping deadlines or return shipments. If you do not understand upcoming increases in warehouse activities, such as an increase in seasonal shipments, it can influence employee sick and time-off requests, as well as overtime costs.

4. Use latest technologies

Using outdated technology can have a serious effect on supply chain costs. It is critical that you implement the latest technology like RFID for tracking inventory or software specially designed for warehouses to improve supply chain management.

Consider incorporating tools like IoT devices, as they can help streamline the supply chain process. IoT technologies help to reduce paperwork, maximize fuel consumption and enhance vehicle maintenance. This, in turn, helps you reduce business expenses and increase supply chain savings.

5. Analyze and optimize existing strategies

It is important that you analyze your current strategies and make necessary changes. You cannot rely on old techniques or stick to them indefinitely. You must update strategies with time to run an efficient operation.

Check every aspect of the supply chain – study the shipping scheduling routes, check if you are adhering to all compliance standards, and evaluate what your costs are at every stage. Once you analyze the needs and demands of the customers, you can develop a demand-planning strategy. The more you streamline your processes, the more efficient your supply chain will be.

The right strategies and tools can help you achieve cost optimization in the supply chain. It is important that you periodically inspect your supply chain and modify the strategies as needed in order to both reduce costs and enhance efficiency.

The post 5 simple ways you can bring down supply chain costs appeared first on Trade Ready.

Getting to Global and the Forum for International Trade Training (FITT) partner to empower businesses to export with confidence through exclusive online training offerings from the acclaimed FITTskills program and CITP®|FIBP® certified industry experts.

Ottawa, ON –October 2, 2019 – Getting to Global, an initiative that connects exporters to global business resources, and FITT, the standards, certification and training body for international trade practitioners, have partnered to bring the acclaimed FITTskills training to the newly launched Export Connect platform. The new space will not only be a catalyst for entrepreneur access to global resources, but also to valuable tools, expert advice, and new business opportunities needed to expand overseas.

Patrick L. Perreault, Co-Founder of Getting to Global, said, “Export Connect is the variable that was missing from the equation. We went from being an educational platform on global strategy to a real toolbox for SMEs to connect them to the experts and resources they need to go global. “Export Connect is literally connecting the dots between government resources, service providers, industry experts and SMEs to facilitate their expansion into new global markets. We’re excited to count FITT as a partner as they bring world-class training content to Export Connect and give exporters access to their network of certified international trade professionals.”

“If businesses don’t have the know-how to go global, they’ll give their profits to someone else, ”

says Caroline Tompkins, President and CEO of FITT. “Regardless of how good the product is, without export capable people, success will be harder, riskier and more expensive than it needs to be. We’re excited to be expanding our support of entrepreneurs alongside key players within Export Connect.”

Getting to Global brings together industry experts, business leaders, and government officials to help your company go global for faster growth. Export Connect is the latest addition to Getting to Global’s set of tools, a game changer for small and medium enterprises, trade and investment promotion organizations, and trade experts alike. And with FITT as a partner, SMEs will have direct access to the most important network of certified international trade professionals.

About FITT
The Forum for International Trade Training (FITT) is the standards, certification and training body dedicated to providing international business training, resources and professional certification to individuals and businesses. Created by business for business, FITT’s international business training solutions are the standard of excellence for global trade professionals around the world.

About Getting to Global
Getting to Global brings together industry experts, business leaders, and government officials to help small and medium enterprises go global for faster growth. We rely on a strong network of partners to aggregate the resources and data SMEs need to enter the global online arena in an unprecedented and simplified way. And we are more than just a website. In addition to creating a profile on Export Connect, entrepreneurs and business owners of all kinds use our Duties and Taxes Calculator to avoid bad surprises when shipping internationally. Or they find our Market Accelerator and discover what markets await them to expand and start growing.

If you have any questions, please contact us at afleury@perimetre.co.

The post Getting to Global and FITT announce partnership to add online international business training and expertise to export-connect.org appeared first on Trade Ready.