No doubt, based on your own experiences and area of specialty, you’ll have strong feelings on the subject.

But if you sit and think about it for a minute or two, is there one aspect that you would elevate above all others, or it is too hard to choose?

There are strong arguments for many aspects of importing and exporting, with each presenting many valid points. However, even when you set them all side by side, it seems almost impossible to narrow down the list.

Over the course of our International Trade Competency Standards (ICS) Project, we had many international trade experts share their wisdom and knowledge on their particular area of specialization.

Through discussion and debate, document reviews, surveys and webinars, they’ve had opportunities to talk about what they think is important in international trade, and why.

As a result, we’ve been able to gain significant insights into this question, and see what international trade professionals like you think is most important in their work.

While we can’t name all of them, here are seven areas that generated particularly high amounts of interest, discussion and debate. Will your top choice be on the list?

1. Conducting a meticulous situational analysis before you go global

Initiating business in another country is not something to be done lightly. It requires a lot of preparation, research and strategic re-orientation.

Deborah Youden, CITP, an Export Consultant with the Newfoundland and Labrador Organization of Women Entrepreneurs, stated,

“We want to ensure that companies who look at international markets are ready to do so, or understand and identify what needs to be done and how they can do it before they launch globally.”

It’s significant because until you examine all aspects of a business and are aware of investments needed from the company, you could be putting the company in jeopardy.

Finding the right pairing of business and market involves taking a look at both halves of the equation. If your business isn’t prepared for expansion, entering a new market could overstretch resources, cause major supply chain disruptions or leave employees overworked, among other issues.

On the other hand, businesses need to know whether there is a demand for their products or services in a new market, and whether they are legally able to do business there without overcoming significant obstacles.

Deborah says that having consistency and standards for the process, as defined by the ICS project, will be a great benefit for any company looking to go international.

2. Impeccable analysis and mitigation of all types of trade risks

There’s always a lot of risk in any element of international trade. If you don’t know what they are ahead of time, and plan for them, your business could be in big trouble.

Currency exchanges, political instability, intellectual property rights, cultural differences, economic issues – the list of risks seems to never end.

That being said, risk shouldn’t stop you from doing business internationally. When properly managed, it is simply one aspect of many incredible opportunities.

The key is to identify those risks, create backups and margins of risk, and keep both the best and worst case scenarios in mind as you broaden your international horizons.

3. Managing financing and payment for trade transactions with confidence

While the payment methods and processes of international trade are very important, there are a lot of steps that companies need to take before it occurs.

Getting financing and credit before the transaction takes place is a crucial component of any deal, as most companies do not have the liquid assets to pay to purchase international products or services out of pocket.

Having a firm sense of the skills needed to acquire that financing, secure insurance on trade deals, and negotiate the details of payment will eliminate confusion, and streamline the process.

Once companies are on the same page as to how the entire financial process occurs, negotiating the best deal can then take centre stage for your company and its business interests.

4. Master research and planning to effectively manufacture goods for export

It’s one thing to produce a product for export; producing one that meets customer demands, operates exactly as expected and is packaged to meet specifications is quite another.

Before the manufacturing process starts, companies must conduct market research to make sure that the proposed product meets market expectations and consumer demands.

Once the product comes off of the assembly line, it also needs to be tested for quality and safety assurance, and then packaged and labelled in such a way that all of its features and uses will be clear to consumers.

With such a diverse skill-set required, it’s no wonder that manufacturing has become one of the most dynamic and in-demand career paths in international trade.

5. Handling the many variables involved in the international transportation of goods

In transport, the number of variables a company has to manage are simply staggering. As Audrey Ross, CITP, Logistics and Customs Specialist for Orchard International Inc. lists:

Costs are dependent on location of pick up,   port of departure, port of destination, destination of final delivery, INCOterm contract, mode of transport, type and size of product, customs cleared or in bond for customs deferral, and remote or popular location or destination.

“Timing is also dependent on location, destination, mode of transport, type and size of product, etc.”

While it can be difficult to standardize the differences in transporting all kinds of goods, Audrey says companies can agree on the variables involved, the differences between domestic and international transportation strategies, and the types of hiring and training needed for the staff involved, among other topics.

6. Implementing effective international sales and marketing plans

As Melanie Abdel-Malak, Director, Foreign Market Development for Quebec International reminds us, “You can have a great plan, know all the customs rules and comply with all regulations, but if at the end you don’t sell anything, your project is a fail!”

She also, however, identifies that the sales process poses significant challenges to SMEs newly entering international trade because of the many skills and processes needed to ensure success.

“There is an array of aspects that one must take into considerations before getting into international sales. The main problem is that, especially for SMEs, the concentration will be more in developing the sales network rather than planning, analyzing and getting feedback.”

At the end of the day, you do not only need sales but also profits, which means there is more to sales then just selling.

With this in mind, she added that standardizing the skills needed for sales allows even experienced professionals to assess their own abilities, and gain training to fill in any competencies they may need to address.

7. Recruiting the best talent for the job

Time and time again, we hear that having the right people in the right roles can make all the difference in global trade. But how can you make sure you get the right people in place, and manage your staff across international borders?

It starts with establishing HR, recruitment and training strategies. From there, companies need to decide on key issues like compensations, benefits and performance reviews, as well as developing guidelines to send domestic employees overseas and bring them back afterwards.

Though HR professionals in global trade companies might have differing opinions as to what the best way to do each of these would be, it’s important to make sure each step is covered in the way that works best for your company’s needs.

Did any entries on this list surprise you? Is there one you would add on, or want to take off?

The post The top 7 most important skills that global trade professionals need to master according to industry experts appeared first on Trade Ready.

In fact, there are a number of exciting, high-potential options available, both for entry and for growth.

But first, it’s important to separate facts from myth; for global business in general, and international markets expansion in particular. Here are the top three myths about going global that people seem to believe:

1. “We should start in a foreign market that speaks the same language as us.”

This logical comment came from a U.S. client of ours with a new product intended for Emerging Markets.

He was referring to his plan to use the United Kingdom as a global launching pad, largely because it has been designated as a pre-dominantly English-speaking country (like the U.S.).

However, at that time, the American dollar – British pound exchange rate was more than 2:1.

This meant that any launch event, as well as general operations there, would have cost more than twice as much as the same efforts here in the United States, and many times more than what it would cost in his target markets.

Canada might also have been a strong candidate, with the English correlation, and (usually) a better exchange rate.

Ideally, however, a pilot or launch would be conducted in an Emerging Market country in order to replicate the conditions anticipated in the primary market(s), and happily reduce costs.

2. “Africa [North America, etc.] is a largely populated market. With all those people, we’ll make a killing in sales.”

One of the most compelling and important aspects of international and domestic marketing strategy is segmentation. It makes otherwise small markets “big” and sometimes renders big markets small.

When segmenting any potential new market, it is important to be data-driven, by performing a series of research exercises and analyses.

Doing so will yield target markets, segments and niches that, when penetrated with incisive strategies and tactics, yield a high ROI (return on investment) and build a a sustainable revenue base over time.

We see this in smaller business-to-business clients who tend towards business-to-consumer thinking.

In large markets, access and purchasing power are also key considerations, in addition to adroit segmentation.

South African major supermarket chain Shoprite leveraged these critical aspects when, in the 1990s, it began offering funeral coverage services in addition to standard goods, and bus and air tickets.

Although it suggests the maxim, “shop till you drop!” could have a whole new meaning, it was a logical strategy for reaching a mass market with transportation and financial challenges, via partnerships with insurance providers.

Shoprite has been voted the #1 Supermarket in South Africa, according to their corporate site, since 2006.

3. “A success in one market, a success in all markets.”

An overseas client of ours, who had been wildly successful in their domestic market with a technology device, expected that when they opened shop in Silicon Valley, the local red carpet would be rolled out for them.

Unfortunately, while they had researched their own market with its culturally driven norms and constraints quite well, they just assumed their widget would be the darling of “Tech Worldwide HQ”. Thus, they arrived uninformed and ill-prepared.

The unique selling proposition that set their home market ablaze overseas was not only irrelevant here; it was deemed deplorable.

Worse still, they arrived with virtually no marketing budget to compete with U.S. startups, in the same space and on their home turf. We continue to wish them well.

Worth the prep

International markets development is not only possible; it is ultimately essential for most businesses who want to lead markets, securing sustainable brands and revenue streams.

That said, success will be awarded only to those who do their homework in depth; formulate and execute exceptionally well on incremental, highly strategic plans; and remain watchful and agile in order to course-correct and/or build upon well-considered metrics, pilots and plans.

So, for those willing to put in the effort, Global Business success awaits…let’s go!

What other popular myths are out there about going global? 

The post The top 3 myths about going global appeared first on Trade Ready.

Maybe the all too familiar refrain of last year’s uncertainty has dampened our competitive spirit as Canada realigns its economic identity.

However, there are strong reasons to remain genuinely optimistic about the major prospects of Canadian SMEs on the global stage in 2015.

The global momentum was building in 2014…

2014 was billed as the year of recovery for many advanced economies around the world, and thus the global economy.

Although the trajectory for recovery in 2014 fell short of many predictions, there was still a 2.6 percent global growth against the 2.5 percent growth seen in 2013. This marginal increase was a tangible sign of optimism for the years ahead.

In Canada, the projected real GDP growth and the declining unemployment rate, which was down to 6.7 percent by the end of 2014, were only a few of the indicators that showed we were at an economic turning point.

Though some dispute the strength of the Canadian economic recovery in 2014 given the marginal increase, the fact remains that the economy improved and the momentum was building coming into 2015. 

Then the price of oil dropped….

Reaching their peak in June 2014, oil prices had to come down.  Yet no one accurately foresaw the magnitude of oil prices’ prolonged decline.

The shocking free-fall dominated headlines across the globe, economic forecasts were overhauled, and investment plans were re-evaluated. Canada’s already slow-moving economic recovery was now facing internal conflicts as projected government surpluses came under serious threat.

Stephen Poloz, Bank of Canada’s Governor, even stated,

I think that this [fall in oil prices] is a setback [on] our path back to where we planned to go. It’s delaying things by perhaps as long as a year.

He then shocked many Canadians by cutting the central bank’s benchmark rate from 1 percent to 0.75 percent; making Canada the first G7 nation to make a major move in response to falling oil prices.

Plummeting prices (and sluggish economic recoveries in the EU and Japan) also left the World Bank with no choice but to lower the global economic growth forecast for 2015 from 3.4 percent to 3 percent.

There were losers and winners

The nose-dive taken by the price of oil has inadvertently left Canada, a major oil-producing nation, facing a win-loss dichotomy.  Though it remains too early in the game to assess the full impact, analysts are predicting major losses.

The numbers aren’t looking promising for heavy oil-producing provinces like Alberta, Newfoundland and Labrador, and Saskatchewan, where we expect a sharp fall in government spending and resource revenue, as well as declines in business investment. There is even the potential for massive job losses.

Leaders are undoubtedly going to have to call several timeouts to re-focus and strategize before we even reach the end of the first quarter. But the game is far from over.

In 2014, Canada’s exporters—particularly, non-energy exporters—had a good year that was stimulated by the low Canadian dollar. They’re poised to win again this year.

According to a recent economic outlook report by RBC Economics Research, we can actually anticipate higher export-growth this year than in 2014.

Last year, export was a key driving-force behind Canada’s recovery, and exporters are only going to gain speed in 2015 if they’re bold enough to seize the opportunities before them.

So far, our winners seem have ample game left to play.

Reasons to go global again

There is a surging appetite for Canadian innovations on the global market, especially in the manufacturing, automotive, ICT and agricultural sectors. This is creating an auspicious environment for Canadian small and medium-sized enterprises (SMEs) on the world stage.

To renew your go global strategy this year is a competitive move for Canadian businesses, but it’s also absolutely critical to Canada’s economic future, especially now that we know to expect significant cuts to government revenue due to the drastic decline in oil prices.  Here’s why: 

1. The momentum from the US recovery cannot be underestimated

President Obama, during his 2015 State of the Union Address, explained that

…after a breakthrough year for America, our economy is growing and creating jobs at the fastest pace since 1999. Our unemployment rate is now lower than it was before the financial crisis.

This is not just a promising partisan political statement, but a fundamental fact. As the world’s largest economy, America’s robust economic revival is not only good for our southern neighbors, but also a major catalyst to global economic growth.

The US housing market continues to improve, business investment is gradually picking up pace, and the decline in oil prices is actually boosting household income while simultaneously stimulating spending.

The international political and economic spheres continue to support the narrative that the US economy has rebounded.

Canadian exporters cannot afford to underestimate the plethora of opportunities this is creating. With that being said, global growth in 2015 and beyond cannot take full flight on the single engine of the US economy. But for Canada, this single engine seems to be garnering more-than-ample momentum to give us our own economic lift.

2. A World of Opportunity Beyond the US
The US will always be an important trading partner for Canada, but global trade patterns are changing. The call for Canadian exporters to diversify and venture into new opportune markets is louder than ever.

As the growth of emerging markets continues to outpace that of the so-called developed world, expansion of trade is a necessity in today’s highly competitive global market.

Despite lower-than-expected performances last year by high-growth emerging economies like China, Brazil and India, these markets, together with others like Mexico, South Korea and Indonesia, remain vital to Canada’s economic prosperity as a trading nation.

In 2005, looking beyond the BRIC nations (Brazil, Russia, India and China), before the inclusion of South Africa to form the BRICS , Goldman Sachs, introduced the notion of the Next 11 (N-11- Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam), as the next set of growth markets.

While the Next 11 vary economically and geographically, they share common economic growth potentialities.

Although the four most prominent economies of the N-11—collectively referred to as the MINT (Mexico, Indonesia, Nigeria and Turkey) —may not exert the same impact as the BRICS , they are expected to rival the G7.

For example, Mexico is a market geographically positioned to benefit from the tailwinds of American economic growth.

According to the US Department of State, nearly 80 percent of Mexico’s total exports are to the US. Mexico is also the United States’ largest exporting market, after Canada.

As an emerging economy and a NAFTA partner, Mexico remains important to Canadian exporters with booming manufacturing and auto sectors, as well as increasing foreign direct investments. We have every reason to be very optimistic about Mexico’s growth potential.

Peter Hall, Export Development Canada’s Vice President and Chief Economist, even stated that

as the other economy that shares a border with the world’s growth engine, Mexico has had a banner year in trade. Thus far, exports are up 7.9 percent largely because of the US economy, and given the latter’s continued strength, Mexico’s exporters seem buckled in for another great year.  

The global opportunities and assistance you need are waiting!

Sanctioned countries excluded, these markets, together with other developing economies like Chile, Colombia, Kuwait, Ghana, Peru, and Zambia, are where Canada’s world of opportunities in trade lay for 2015 and beyond.

As our nation forges its path into both developed and emerging markets, it is critical for Canadian exporters to leverage the services of EDC, the Department of Foreign Affairs, Trade and Development (DFATD), Trade Commissioners and the government’s renewed commitment to international trade to take on opportunities to gain competitive advantage for themselves. By doing so, they can help make significant contributions to Canada’s economic prosperity at home.

Are you planning to rethink your global strategy this year?

The post Here’s Why You Need to Recharge Your Go Global Strategy appeared first on Trade Ready.

Our next #TradeElite Twitter chat will help you navigate all things money. We’ll talk about methods of payment, which method to use and why, and how to implement different types of payment.

Join our special guest moderator Alexander Malaket, CITP|FIBP, to make sure you get paid when you go global!

Look here for details on how to participate in our chats and build visibility for your global business and brand.

Highlights from the previous #TradeElite chat

During our last chat, Emiliano Introcaso, CITP|FIBP, and our panel of experts  gave up great tips and advice for selecting the best vendors to create an effective global supply chain.

#TradeElite Q1 Can you share your experience when selecting #global vendors?

— Emiliano Introcaso (@introcaso) May 8, 2014

@Cerasis These are outstanding qualities we all look for in distributors. #TradeElite

— Louei Ali (@LoueiAli) May 8, 2014

@introcaso A2: Ask a LOT Of questions to all the players and partners in the #ValueChain. Japanese say “Gemba” #TradeElite (Cont.)

— Cerasis (@Cerasis) May 8, 2014

@introcaso A2: Assess 1st, plan & create strategy, execute strategy, set up KPIs, get Data, Data, Data, iterative improvement #TradeElite

— Cerasis (@Cerasis) May 8, 2014

Find out how the @TCS_SDC can help your SME find qualified contacts: https://t.co/hsbRSlUSyk #TradeElite

— Paula Ibbotson (@paulaibbotson) May 8, 2014

@introcaso A3: This Q is relative to 1st. Risk management becomes more of a priority & assessment as well. EXPERTISE is a must #TradeElite

— Cerasis (@Cerasis) May 8, 2014

@introcaso A4: w/so many moving parts for transportation, warehouse, negotiations, etc., 3PLs allow you to skip the pitfalls #TradeElite

— Cerasis (@Cerasis) May 8, 2014

@introcaso A4: Facilitate within the local market. Just used TCS in Brazil and they guided me to 3pl and it worked #TradeElite

— Louei Ali (@LoueiAli) May 8, 2014

@introcaso A5: Improved INTERNAL culture, begetting higher communication/collaboration for more innovation #TradeElite

— Cerasis (@Cerasis) May 8, 2014

@introcaso Absolutely! We do that here, including employee development. See importance of here: https://t.co/NTCxLltbsN #TradeElite

— Cerasis (@Cerasis) May 8, 2014

Q5: clear timelines at each stage. We say one day delay can cost us 2 weeks on delivery. #TradeElite

— audrey ross (@tresAudrey) May 8, 2014

@introcaso @LoueiAli What’s the saying: “Measure Twice. Cut Once.” Same in #ValueChain & Biz decisions in general #TradeElite

— Cerasis (@Cerasis) May 8, 2014

@LoueiAli @Cerasis @introcaso but channel partners must be vetted by biz plan not logistics experience https://t.co/B8ne335c3z #tradeelite

— Ed Marsh (@edbmarsh) May 8, 2014

my take for today’s #TradeElite chat is to plan, prepare a good strategy, invest in your employees. All gains for a better #valuechain

— Emiliano Introcaso (@introcaso) May 8, 2014

We look forward to seeing you at our next #TradeElite chat and virtual networking session.

The post Get paid when you go global! Upcoming #TradeElite chat and networking session appeared first on Trade Ready.