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.
In layman's language exporting is selling goods or services to another country. A perfect example is shipping soybeans from the United States to Japan. In this scenario, the soybeans are the exports while the seller, the US, is the exporter.
Exporting goods from the United States has never been more accessible. Once you understand the process, it can become very straightforward for any company. Plus, you can always work with a professional export trading company that understands the ins and outs. American Trading International (ATI) is one of the best.
However, most traders still have one unanswered question. Is my business ready to export?
Listed for you are some vital aspects to check on. If you can account for these factors, your business is ready to export.
Identify and research your market thoroughly. Learn how it functions, its strengths, and weaknesses. Know your target customers as well. Are they old or young? What are their beliefs, language, and cultures? Make sure no stone is left unturned.
Another major thing to consider is your competitors. What market share do they hold? Are they government or privately owned? It’s essential to find out more about them.
Logistics is the process taken to supply your goods to customers. It entails storage, packaging, transport, and more. You need to identify how your product will reach the customer. If this process becomes complicated, it’s always worth reaching out to a trading company to help streamline shipping.
Always ensure you have the correct documents for exportation. To export from the USA, you require customs clearance. Also, some documentation and payments as requested by the foreign country.
Establish a form of payment with your customers. It is crucial as countries have different currencies. Intervening factors like inflation, interest rates, and government regulations play a huge role too. Discuss the methods of payment to eliminate any confusion in the future.
The year 2020 saw exports from the US decrease at a sharp rate. The pandemic gravely halted exports growth, with a 16% decline that spread unevenly on exported goods and services.
Aircraft, vehicles, petroleum, and machinery experienced significant drops. Overall, this was the largest experienced export drop on records.
However, there has been a tremendous change since then. Exports have begun rising steadily. From February 2021 to 2022, there has been an increase of 16.6%. It is a clear indication that the export market is back on its feet.
As a new exporter in the US, there are two basics worth knowing. Free Trade Agreements and Foreign-Trade Zones.
These are trade agreements between the US and other countries. Their goal is to help reduce trade barriers. The USA has FTAs with twenty countries and is working to attain more. This means exporting from the US to these countries is more favorable.
Foreign-Trade Zones are areas with reduced US customs rules and regulations. They are supervised by Customs and Border Protection (CBP). FTZs are full of benefits such as reduced logistics costs, tariffs, and lengthy custom duties.
As a new exporter, it can be hectic to establish the proper exportation plan. We got you, though. Below is a simple step-by-step guide on planning export from the US.
You can carry out specific tests to check the ability of your firm. Also, evaluate your management to know if they are ready.
An export process is a must if you want to penetrate and succeed in a foreign market. It is always best to establish a strategy that favors you and your customers.
You should be able to understand the market you have chosen pretty well. Also, make sure your products and services are designed for that market.
Once you have established your target market, it’s time to market your products. Identify strategies you can use to reach out to customers.
The customers are now aware of your products. Decide on an efficient way of taking products to them.
Creating a financial strategy involves coming up with a finance system. It entails payment and the flow of finances. Simply all things related to money.
Follow all the legal export requirements. Ensure you have all the proper documents required in the US and foreign countries.
Exporting to a foreign country can be challenging, primarily for new US exporters. Export trading companies are built to cushion new and existing traders by providing quality export services.
Export trading companies identify potential buyers and cater for documentation, logistics, and insurance, so you longer have to go through the hassle of exporting. Furthermore, some of the export risks are eliminated by these companies.
American Trading International is an export company based in California, USA. The company has been offering food and beverage export services since 1995. It currently exports to over eighty countries worldwide. This goes to show how exporters highly value it.
ATI is famous for supporting international and cultural awareness. Due to this factor, it has hundreds of manufacturers and suppliers worldwide. In addition, it has a global staff with diverse backgrounds.
American Trading International gives each trader a personalized experience. It achieves this by taking care of your export processes. ATI finds your business quality buyers, eliminates distributor and logistics costs, reduces export risks, etc.
Its end goal generally is to carry out flawless and profitable transactions. This is made possible by many things, like market research, developed image, connection, and workforce diversity. Your exports are highly secured with ATI and have the highest chance of success selling overseas.
References
BLOG & Articles
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