Particularly popular articles featured planning your market research and strategy, spotlights on some of the elite professionals who hold the CITP®|FIBP® designation, and the latest about FITT, the job market and international trade as a whole.

Whatever interests you most, we hope this gives you a chance to catch up on some of the most popular articles you may have missed, or re-read some favourites as we head into 2018.

10. 4 ways artificial intelligence is transforming trade

As the technology has matured, businesses in all industries are working hard to develop applications for AI that will boost their productivity and improve their operations.
And it’s no wonder why: a study by business research group Accenture found that artificial intelligence has the potential to double economic growth rates within the next 20 years, while increasing productivity by 40%.
The international trade sector has quickly caught on to the artificial intelligence trend. With so much data generated by companies, there is ample opportunity to improve trade processes with artificial intelligence.

9. Varun Anthony, CITP|FIBP – Agricultural Specialist

Varun Anthony is a pillar of patience. As he tells his clients, a dose of patience is what helps a brand successfully enter a potential international market.

Varun always wanted to pursue a career that was client-centric. At first he thought the hotel industry would provide the client-based work he was interested in. While the work was rewarding, Varun often found he had to be to be highly reactive. He wanted a career where he could be proactive and creative. This led Varun to start researching new career options, which led him to international trade.

8. Simplify your market entry strategy with this 9 step checklist

When developing a market-entry and maintenance strategy, a variety of other factors must be considered.

What method best suits your company’s product or service? What is the layout of existing distribution networks, and what forces drive them? What is the competition doing, and what can be improved? What does the market research indicate are the drivers of customer buying behaviour? What investment needs to be allocated, in both the short and long term? How will the strategy need to be modified as you (the exporter) progress through the market- development cycle?

Most importantly, what are the critical success factors that could determine the difference between success and failure in a target export market?

7. Shriya Ramachandran, CITP|FIBP – Trade Commissioner (Infrastructure)

Shriya Ramachandran entered the world of international trade as an environmental researcher, monitoring various aspects of climate policy that impacted local and global industries. Transitioning from that position into a career focused on international trade was a very natural process.

Shriya began working as a trade officer for Global Affairs Canada (formerly DFATD) in 2014. Before that, she worked at the Finnish Trade Office in India as the clean tech program head for over three years.

6. What types of data do you need for your market research?

Once you have the objectives for your market research established and the parameters specified, researchers can select which methods you will use to collect data, and there are a wide range of research options available

When researchers answer the important questions they face, it will help them identify the potential data sources for the research information and the methodologies needed to obtain the information. The sources and methodologies can then be compared to the budget and timelines to decide if they are suitable and achievable.

5. EDC and FITT Teaming up to Educate Canada’s Next Generation of Trade Leaders

Export Development Canada (EDC) and the Forum for International Trade Training (FITT) today announced a formalized partnership to deliver enhanced trade education to Canadian companies and trade professionals.

At the core of the partnership is the creation of the EDC-FITT International Trade Learning Centre (Centre) – a digital platform from which EDC and FITT will offer information, learning modules, and other knowledge-based resources focused on helping small- to medium-sized enterprises (SMEs) go, grow and succeed internationally. The Centre is expected to be fully operational in early 2018.

4. Top 5 fastest growing international trade jobs

Despite a certain amount of political and economic instability, global trade is a sector that will continue to create jobs. As the world gets smaller through technology, global connectivity brings with it endless opportunities for companies to do business in international markets.

Jobs that drive these international activities are growing, and therefore professionals who have international competencies will continue to be in high demand. Growing salaries often means qualified employees are in short supply.

While there is no shortage of positions available for the global business savvy professionals out there, we’ve identified the top five jobs that are growing in both demand for employees and salary.

3. The role of international organizations in international business law

As international trade has grown, so has the evidence of its benefits to both states and enterprises, the most obvious of which is economic gain. The more universal the market, the more freely trade flows, generating more economic resources for market growth, infrastructure, research and development, jobs, market and labour specialization, global, economic, and social stature.

Numerous guidelines, model laws, conventions, and treaties now exist to manage and govern international trade. Their goal is to open borders, modernize customary exchanges and reduce trade barriers around the world.

In an effort to realize these goals, a number of international organizations (IOs) have been established.

2. 10 global trade trends we’ll be watching in 2017

A new year means three things: lots of people are going to sign up for gym memberships they won’t use in three months, others will keep writing the wrong year on all their correspondence, and of course there are a plethora of new trends and predictions to look out for in the year ahead. We’re going to focus on the last of the three.

What should you have been looking out for or expecting in the international business world in 2017? Let’s take a look and see what was dominating the headlines you read over the past twelve months.

1. The 7 steps of a strategic procurement process

The procurement process can be a complicated one. Strategic procurement is an organization-wide process. It requires input from all departments and functional areas for an organization. Organizations should set up a strategic procurement team. This team sets the overall direction for procurement, aligned with the business strategy. The team will then use the data from the strategic procurement process to develop and implement a strategic procurement plan.

Here are the 7 steps that lead to a successful procurement process.

The post Top 10 most popular global trade articles from 2017 appeared first on Trade Ready.

International business development professionals are widely recognized for playing a key role in the international trade profession. They work in a variety of international markets, growing their companies by developing new customers and maintaining relationships with their current customers.

Those working in international business development requires knowledge of finance, risk analysis, market entry strategies, laws and regulations.

They must be able to perform at a high level when providing customer service, developing market entry strategies and assessing their organization’s ability to meet the needs of a client.

These multitasking professionals work for a wide range of companies, in various industries. However, one thing they have in common is the need to work in an international context and cultivate skills specific to the market in which they are working. As such, they must have a strong ability to build relationships across cultures, increasing the intercultural competence of their own organization.

These seven key categories represent the most important knowledge, skills, and attitudes for any international business development professional. In order to enhance existing business and develop new business, these crucial members of any global business team need to master the following:

1. Establishing the feasibility of international trade

International business development professionals understand the importance of assessing potential gains against potential risk to establish market feasibility. These talented pros then apply this knowledge to determine if a concept will improve the bottom line and fit with a company’s strategic direction, which is essential to entering or expanding an international trade initiative.

2. Market expansion planning

As an international business development professional (IBDP), you must have the ability to develop a detailed international business plan and assist in its implementation. The individual in this crucial role will understand and develop the strategies to manage any risks that are identified and defined in the plan.

3. Creating effective market entry strategies

IBDPs understand the importance of researching market entry options, analyzing these options, and then selecting the best entry strategies and strategic partnerships for their needs. They then apply this knowledge by conducting a comprehensive assessment of international market entry options for the export of products or services, and recommending the optimal market entry strategy.

4. Adaptive product/service production

It is vital that any IBDP understands the importance of adapting products and services for an international market. They must also know how to take full advantage of any mutual recognition agreements (MRAs) between various countries, write winning responses to RFPs and comply with local IP and labour regulations. This savvy professional will then apply this knowledge to maintain a competitive edge when adapting or customizing products and services for an international target market.

5. International sales and marketing

A good international business development professional understands that while marketing can create demand, an effective sales strategy is essential to profit from this demand. This focused individual applies this knowledge to ensure an organization’s product or service is seen to fit the needs and interests of an international target market, or a specific client, customer or partner.

6. Intercultural competence

The IBDP grasps intercultural differences and how they impact international business. They will always adapt their business practices to demonstrate intercultural competence and build better relationships with other professionals around the world.

7. International law and ethics

An IBDP knows the basic legal principles of international business and complies with any domestic and foreign legal requirements that govern international trade activities. Having a foundation in international law allows them to make ethical decisions and recommendations to support professionalism and organizational decision-making in international trade activities.

Think you’ve got what it takes to be a successful international business development professional? If so, your future is bright!

IBDPs are one of the most sought after, growing positions in global trade today. Salaries range from sector to sector and are widely affected by commission, but this can be a very lucrative position for those who have the skills.

Still have more to learn before you’ve mastered all seven key skills categories? FITTskills courses can help you build these skills and more, in a practical, flexible environment.

Want to learn more about which competencies you need to have to succeed in this positions, and others? Head to FITT’s International Business Resources page to read occupational profiles for 20 international trade occupations, including International Business Development Professional!

The post 7 skills every international business development professional needs to master appeared first on Trade Ready.

All parties in all commercial transactions should be aware of the potential for fraud. In some cases those parties you negotiate with may not even be aware of the liability they pose.

Fraud—intentionally deceiving another party—is a criminal offense under common law and a civil violation under civil law. While companies claim transparency, or on the surface may seem safe, failing to fully investigate the party you are contracting with is an invitation for fraud.

Article 3.8 of the UNIDROIT Principles of International Contracts states,

“A party may avoid the contract when it has been led to conclude the contract by the other party’s fraudulent representation, including language or practices, or a party may avoid the contract when it has been led to conclude nondisclosure of circumstances which, according to reasonable commercial standards of fair dealing, the latter party should have disclosed.”

While most often considered a matter of criminal offence, during the 22 October 2007 UN General Assembly meeting, the Commission Secretariat noted their increasing attention to the area of commercial fraud, which is considered to be one of the present day’s greatest threats.

They stated that:

Commercial fraud often has an international character, and the activity poses an obstacle to international trade, which has a negative effect on the stability of national economies.

Even with a decade of highly publicized scandals such as Enron in the U.S. and Deutsche Morgan Grenfell in England, and the increased efforts to regulate and control it, fraud continues to be a major issue for countries all over the world. The increasing complexity of fraudulent conduct that entrepreneurs must guard against includes the following activities:

Non-Delivery, Thefts, Piracy, False Reporting, Falsifying Documents, Investment of Commodity Fraud, Deceptive Marketing or Advertising, Supression of Regulatory Breaches

Be vigilant in your due diligence in international contracts

Due diligence is the thorough investigation or audit of all matters relevant (e.g., financial records) to an agreement between potential contracting parties. Due diligence before and during negotiations is the best way to limit the financial loss, reputation diminishment, civil tort (law suit brought for a wrong other than a breach of contract) or litigation and in some instances bankruptcy that can result from fraud.

Unless an uncovered risk is so substantial as to be a deal breaker, negotiations are a way to work through the issues towards a successful contract.

As with other areas of negotiations, due diligence can be an increased challenge in international contracts because of language barriers, corporate business cultures, disparity of national rules, and distance.

Regardless, every effort must be made by both parties to research all aspects of your potential partner as thoroughly as possible.

Some examples of areas of research on your potential partner’s company include:

• Financial arrangements such as loans or indemnities
• Market potential, competitive position or future performance indicators
• Labour, human resources or union agreements (or lack thereof) and workforce capability
• Cultural or language barriers and associated management or integration costs
• Quality control, government regulations and environmental issues such as hazardous material disposal or clean up
• Information technology, including system integration, security and upgrades, as well as hardware and production or manufacturing equipment

It is also important to research the laws of the nations governing international contracts to understand how your company can best protect or proceed with litigation to recover or prosecute for damages as a result of fraud.

Remedies to Fraud in International Contracts

New scams are emerging every day, and in addition to due diligence, you can guard your company or investments from fraudulent international contracts in the following ways:

1. Acquire expertise
If this is not your area of expertise, obtain advice from consultants or lawyers who specialize in both international trade contracts and the market you are trading in. Invest in accounting and marketing expertise when investigating bottom lines and market potential.

2. Employ letters of credit and secure payments methods
While guidelines on payment terms and methods are relative to the business relationship (for example, established trust between two businesses may result in a longer payment term), each party should still take every precaution to create secure and clearly stated terms.

Letters of credit have banks guarantee sellers payment or partial payment on behalf of buyers according to rigidly defined terms.

While they do not eliminate the risk of fraud, and are often used by fraudsters to provide a false sense of security to inexperienced traders, letters of credit, used with appropriate supporting advice, can be helpful in mitigating the risk of fraud.

3. Place requirement clauses in contracts
Negotiating requirements into contracts, such as product samples or analysis, insurance, currency, certification, and compliance or regulatory documentation is an effective measure to ensure you are dealing with legitimate parties.

4. Be aware of current trends
There are a number of organizations and consumer advocacy groups such as National Anti-Fraud Network and the U.S. Federal Bureau of Investigation who post the latest fraud schemes and safeguard suggestions.

5. Limit technical and physical security access
Limit both physical and virtual access of contracting parties to sensitive areas.

Due diligence is the best way to uncover any potential risks and avoid costly and time consuming litigation in an international incident.

Have you followed all of the above to ensure your international contracts are secure? Have you ever had any experiences with contract fraud, and if so what did you learn from the experience?

The post 5 ways due diligence can prevent fraud in your international contracts appeared first on Trade Ready.