November 30, 2022
Types of International Trade Strategies
Let’s see what some of the most common types of international trade strategies are and how ATI can help you create one.
With approximately $5.6 trillion in exports and imports of goods and services in 2019, the United States is the world's largest trading nation. The United States has trade agreements with over 200 countries, territories, and regional organizations throughout the world. The United States is the world's second-largest exporter of products.
Exporting is the process of moving domestically produced products from one country to another to make a sale/trade. An example of exporting would be Ecuador selling bananas to other countries, or China selling rice to other nations.
The US export industry is a massive one that generates an abundance of jobs and employment opportunities. It’s a major contributor to the United States’ yearly GDP.
According to the US Commerce Department, here’s a quick rundown of the largest export industries in the US in 2017:
If you’re a manufacturer of food, beverage, or any other dietary supplement in the US and wish to export your products to the rest of the world, there are certain requirements you must fulfill. For one thing, you must comply with all FDA regulations.
Here’s a quick rundown of all the steps you must follow to successfully and legally export your goods:
An export trading company offers export logistics services to companies in the business of exporting goods and services. Typically that entails taking care of shipping, warehousing, insurance, and billing on behalf of clients.
Other than that, export trading companies sometimes also help manufacturers and clients find relevant markets and buyers overseas. It’s not uncommon for several producers to often form their own export trading company.
Exporting creates tons of job opportunities for Americans and American companies. Those jobs tend to carry a wage premium of 13-18% compared to non-export jobs and companies.
Here’s a quick look at why export trades are important for the US:
If you’re a US-based business involved in export who is looking for a trading partner, you need to look for a certain skill set and qualities. These are the qualities that make for a promising export trading partner:
An exchange of goods between countries is governed by complex rules and regulations. More often than not, it’s the import/export manager responsible for handling trade compliance. It’s their job to make sure that all involved parties (including employees of both organizations) are abreast of the latest laws governing import/export.
Businesses depend on mining and analyzing data to gain insight into demand across national and international markets as well as customer behavior. Such knowledge is important for making informed business decisions.
So, an export trading manager must have an analytical mindset. He/she should be able to look at sales stats to anticipate future needs and respond accordingly.
Securing a large contract is only half the deal. It’s quite another to fulfill it on time. A trading partner with inadequate production/resources capability is the surefire way to lose such contracts. There must be, at all times, enough storage and production capacity to meet sudden and unexpected foreign demands.
The trade partner should be resourceful enough to modify the manufacturing process and deliver different versions of services/products based on the foreign market’s regulatory, cultural, and certification requirements.
It’s the act of taking ownership and responsibility for the work you do. Adaptability, on the other hand, is a willingness to modify your processes and ways of thinking to meet the changing circumstances and new scenarios.
An export trading partner must have a knack for understanding the target foreign market and foreign culture. They should know how the cultural nuances and subtleties influence demand for the product. It pays to know the foreign language in which you do business.
It’s the ability to convey your message concisely and clearly without causing any confusion. Poor communication often causes costly misunderstandings. Other than speaking, communication also involves listening skills so you know exactly what others need.
Logistics entail taking care of safe storage conditions, making sure the shipment leaves on time, submitting a prior notice for the shipment, and ensuring that the goods/service reach the destination on time. As simple as it sounds, the actual logistics are quite complex.
Without an understanding of the export logistics, you’re destined to fail. Knowledge of logistics allows you to troubleshoot issues as and when they arise anytime in the supply chain.
ATI or American Trading International is a US-based Food and Beverage export company that works with 80+ countries. The establishment has been functional since 1995. It’s based in California.
Equipped with a knowledge of international and local markets, a multicultural staff, in-house labeling capacities, and a solid knowledge of registration/logistics; ATI is the best strategic partner to grow and expand your brand internationally.
American Trading International represents hundreds of American name brands and international buyers. As a logistics expert, it streamlines the whole export process on behalf of its clients. Not only that, but it also connects sellers with international buyers by exposing them to target markets.
Questions on what we can do for your brand or company? Call us today at +1 (310) 445-2000 or fill out our form on the contact us page.
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