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A young population and great wealth offer potential but may not offset cheaper oil
After a difficult couple of years for international trade, there are reasons for importers and exporters to be optimistic. Global export growth for goods is expected to accelerate, according to the latest HSBC Trade Forecast
Growth in exports will rise to 8 per cent per year by 2017, according to HSBC’s latest Trade Forecast
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Although the opportunities implicit in overseas trade can be highly attractive, maximising the net return requires an awareness of the risks of financial crime, including money laundering and bribery, and an ability to manage complex international sanctions
While the physical distance between a business and a new international partner can be thousands of miles, this needn't be a barrier to a profitable and mutually beneficial trading relationship.
Reliability is key to building a good reputation and punctual delivery of goods is clearly important. While the legal liability for safe shipment of goods may change during their movement, from an importer’s perspective the reputational liability still tends to lie with the exporter.
When trading overseas keeping abreast of traffic of business bank accounts can help maximise profitability.
Trading abroad for the first time is a significant opportunity for any business, but it can be a confusing time with preparing goods for dispatch and various administrative details to complete.
Trading internationally for the first time means dealing with different currencies. To maintain profitability it is important to be aware of the exchange rate achieved, as there may be currency fluctuations during the period between paying for supplies to fulfil an order and receiving payment.
At a basic level, trading internationally is not so dissimilar to trading domestically, except that when dealing with businesses based in overseas markets, receiving and making payments can be more complex.
When companies start trading internationally it makes sense to develop robust relationships with new overseas trading partners. Doing thorough research into potential partners can maximise growth opportunities, as well as fostering high quality commercial rapport
When involved in international trade it makes sense to make and receive payments by the method most suited to the needs of your business. This will almost certainly involve using the internet, but for trading to be profitable and secure there are some points to bear in mind.