16 reasons why my company should export

16 reasons why my company should export

16 reasons why my company should export

16 reasons why my company should export

With globalization, new market opportunities for products from companies from one country to another have opened up. However, before making the decision to go into international trade with your company (micro, small, medium) you must assess whether this process will benefit your company at this time.

International trade, in the vast majority of times brings benefits to companies, but you have to know if this is your moment. You have to think that participation in the international market may require a differentiated product with an added value that makes it competitive.

The first and most important question to ask yourself as a businessman before turning to internationalization is: Why export?

According to a report compiled by the document of the Corporación Interamericana de Inversiones (CII), the answer to this question is that exports can allow profitable growth in turnover, which in turn allows access to a broader market, the defense of foreign competition and a more uniform distribution of sales.

The CII complements this idea with 16 reasons – 16 reasons why my company started exporting – why it can be beneficial to export:

  1. The contraction of the local or national market: if for any reason the domestic market decreases, that is, if local buyers reduce their level of purchases, the company that is also in international trade will be much less affected by this situation.
  2. Opportunities involving the growing demand from abroad: the globalization process shows that the demand for products from different regions is constantly increasing. This demand is a great opportunity for companies. A simple and recent example of this is the demand for organic products.
  3. Generate economies of scale: the increase in demand can allow the company to increase its production and, thus, make it more profitable.
  4. Diversification of customer risk: when deciding to export, the company will increase the total number of customers that work with you. The more customers you have, the less chance there is that losing one will impact your profitability.
  5. Improve profitability: the increase in demand leads to increased production and sales and, with them, the company’s profitability.
  6. To become familiar with the innovations in its sector worldwide: to compete in the international market the company must adapt to the technologies used in these areas. Technological advances allow the company to grow.
  7. Don’t lose competitiveness or the market itself: as a result of this type of growth – profitability and technology – the company can be innovative and put itself at the forefront of competitiveness in the market itself.
  8. Customer support: when entering international trade, the company will be able to give better support to its customers.
  9. Surplus production capacity: all the company’s production surplus can be placed on the international market. Remember that there are more than 200 countries in the world, in addition to your country.
  10. Authority in product and market: the company, over time, acquires authority and respect to place its products in consolidated markets.
  11. Potential tax benefits: when entering international trade it is possible that the company can reduce the proportion of taxes paid. Normally all countries exempt their exports from taxes. And some countries reward exporting companies with benefits in the domestic market.
  12. Growth: company growth is a natural consequence of globalization.
  13. Development of skills and abilities: to export and grow the company will improve its own tools, capabilities and skills. For example, training personnel for their new tasks in the international market.
  14. Gain ability to compete: this increase in capacity will allow you to compete better in your markets.
  15. Gaining prestige in the domestic market and improving the image: access to the international market can improve the company’s image in the domestic market.
  16. To better adapt to market needs: participation in international trade can be a good opportunity to improve the quality and productivity of the company’s products and services for the foreign and domestic markets.

 

16 reasons why my company should export

However, in order to enter international trade, company personnel must also be adequately trained, to know the characteristics and skills necessary to enter the global market safely and reliably. Everything is knowledge. For this, there is the INTRADEBOOK platform that offers a solution that covers the three keys of foreign trade: MARKET, ROUTINES and LOGISTICS.

Source: Corporación Interamericana de Inversiones (CII) and INTRADEBOOK (16 reasons why my company should export)

Image: gov.br – 16 reasons why my company should export

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