Archive for the 'International Trade' Category

A world of opportunity

Published
by
Business Link
on 25 June, 2008
in International Trade
. 0 Comments

It’s no secret that the UK is entering a period of economic uncertainty. Figures from the International Monetary Fund do not predict a recession, but its UK economic growth forecast of 1.9 per cent for 2008 and 2009 is the lowest since the early ‘90s.

Such a dismal outlook presents an uneasy choice for business owners: Should they batten down the hatches, keep a close eye on the finances and focus on survival? Or should they take a bullish approach and try out new opportunities for business growth? The latter question, of course, depends on the potential value of those new opportunities.

International trade is not for everyone. And admittedly, it’s not the quickest or easiest route to business growth. Nevertheless, the world’s global marketplace offers a world of opportunity for some businesses. It offers the potential for increased sales and profits which could ultimately eclipse potential downturns in domestic trade.

Talking at the Confederation of British Industry Annual Dinner last month, Martin Broughton, CBI President and Chairman of British Airways, had this to say:

“These are times of grievous uncertainty… But these are times also of stupendous opportunity in the international markets for goods and services. Today, even the humble Granny Smith can make a journey of 11,000 miles, and still turn a profit. Such are the daily miracles of international trade.”

Miracles aside, the benefits of international trade are very real. According to UK Trade and Investment, “recent research shows that new exporters boost their business productivity by up to a third in their first year of exporting and confirms that, in general, exporting companies are more productive than non-exporters and significantly more likely to stay in business.”

The challenge may be greater than it was before. But does that mean business owners should stop seeking out new opportunities? Despite economic downturn, the world keeps on turning - and the global marketplace keeps on ticking.

The question is, are you ready to export? Click here to find out

More info - Exporting - an overview

Interactive tool - Getting ready to export to individual countries

Ten key steps to successful exporting

Published
by
Business Link
on 23 May, 2007
in International Trade
. 1 Comment

Exporting goods and services to international markets presents many challenges and carries a fair share of risk. But exporting can deliver big benefits - including increased revenues, reduced reliance on domestic markets, or fast track growth.

In fact, there are many reasons why you may choose to export. You may decide:

  • There is international demand for your goods or services
  • There is scope for charging higher prices in international markets
  • You want to reduce your reliance on domestic markets
  • You want to grow or grow more quickly than you can solely in domestic markets
  • You have the expertise to exploit unsaturated or growing international markets
  • Competitive pressures in domestic markets force you to export to maintain profits
  • Foreign competitors enter your domestic market, forcing you to counteract
  • You want to launch an offensive into foreign markets before a competitor does
  • Your business has relatively low production/labour costs compared to foreign competitors
  • You have a strategic need, such as a desire to acquire technology, increased capacity or industry partners

So if you have good reasons to export… What are the next steps?

Assessing your export potential is crucial. Undertaking market research helps you identify and evaluate potential markets, encompassing an assessment of industry structure, likely levels of demand, the general competitive landscape and other factors such as whether you will need to develop your goods or services to adapt to foreign markets.

If your research suggests viable options, a carefully compiled export plan should be built defining precisely how you will enter your chosen markets.

To find out what’s next… Take a look at our Ten key steps to successful exporting

More info - View more resources on Exporting at the Business Link website

Good news for UK exporters

Published
by
Business Link
on 24 October, 2006
in International Trade
. 0 Comments

It pays to keep an eye on the economic indicators. After a long period of underperformance, there are signs that the economies of continental Europe are picking up. That should feed through to increased demand for UK goods and services.

News reports of changing economic indicators can seem a long way removed from the day-to-day priorities of running a business, but it pays to keep an eye on key trends as they can give you an early insight into changes in your market.

This is as true for exporters as it is for businesses selling within the UK—economic indicators provide a valuable source of market research for exporting businesses. Take the eurozone countries. They’ve been performing weakly in recent years, but 2006 has brought a steady stream of positive data. It looks like things may finally be picking up, for a time at least (analysts are divided as to how lasting the current upswing will be).

In the first half of 2006, the combined eurozone economy grew at its fastest rate for six years, expanding by 3.4 per cent. And while unemployment remains higher on the continent than in the UK, as many as five million new jobs have been created in the eurozone over the past five years.

These data aren’t just of academic interest. Improved growth rates in the eurozone means that more money is being spent there. Businesses are busier and therefore need more supplies, and consumers too have higher confidence and spending power. All of this amounts to a potential opportunity for UK businesses with an interest in selling into continental markets.

Supporting downloads (requires login/registration):

First steps to Exporting

Research your export markets

New international trade security procedures

Published
by
Business Link
on 13 October, 2006
in International Trade
. 0 Comments

The world is becoming a more security-conscious place. This impacts directly on businesses trading internationally, because their reputations and their regulatory compliance depend on keeping up to date with an increasing number of security-related rules that apply to UK imports and exports.

One of the main ways the Government acts to ensure the security of the trading system is by issuing export control licences. This involves businesses obtaining official approval for export consignments containing goods with military applications or other strategic significance.

If you think this may apply to your business, the organisation to contact is the Export Control Organisation (ECO), which you can telephone on 020 7215 8070.

Another body with significant responsibilities in relation to the security of international trade is HM Revenue & Customs (HMRC). HMRC deals with most of the day-to-day paperwork involved in exporting, and in the coming months there will be a number of security-related procedural changes that all traders should be aware of. The first of these is SAD Harmonisation. This is a Europe-wide process of aligning the rules for completing customs declarations forms (known in the UK either as the SAD, or as Form C88). SAD Harmonisation will take place in two stages.

From 7 January 2007 a transitional set of rules for completing the form will be introduced. Full implementation will then take place on 1 July 2007, from which date the old rules for completing the form will be completely replaced.

Another change taking effect on 1 January 2007 is the introduction of the EU Customs Security Programme. This will require all importers and exporters in the EU to obtain a security certificate to ensure the swift movement of their goods through customs. This will affect a reported 130,000 UK businesses. Businesses failing to obtain a certificate may have their goods retained by HMRC until security checks on them are completed.

For more information about SAD Harmonisation and the EU Customer Security Programme, contact the HMRC National Advice Service on 0845 010 9000.

When the world comes knocking

Published
by
Business Link
on 17 September, 2006
in International Trade
. 0 Comments

The Internet accounts for an increasing share of small-business sales activity. It presents huge opportunities, as well as many challenges. If you start receiving enquiries from overseas, are you ready to start exporting?

Most exporting businesses set out with a clear sense of the markets they’re going to sell to and when and how they’ll go about it. But thanks to the Internet, an increasing number of businesses find themselves having to start exporting before they’ve had time to develop an export strategy.

What should you do if overseas customers start placing online orders with you? You can always refuse to accept overseas orders, of course, but you should consider carefully whether doing so would sacrifice a potentially lucrative source of revenue.

Assuming you want to accept and build on your first export orders, you’ll have some planning to do. There’s a link to an introductory guide to exporting below, but for the moment here are some of the key things you’ll need to consider:

  • Paperwork: your exports need to be recorded on your VAT returns, and exports to outside the EU need to be declared to HM Revenue & Customs.
  • Logistics: you’ll need to consider how you’re going to have your goods transported overseas.
  • Finance: depending on your level of export activity, you may want to talk to your bank – exporting may alter your cashflow patterns, for example, or expose you to foreign exchange risks.

Supporting downloads (requires login/registration):

The First Steps to Exporting

Research Your Export Markets

Export Finance