The primary reason most companies trade internationally is to reduce risk if you think of the old adage of not putting all your eggs in one basket, the same applies to the business world and international trade.
if you’ve got a stable market here in the UK it might prove prudent to look at how you can grow your business internationally.
The first step you would take when looking into international trading would be examining your business here in the UK, this would make it easier to start looking for a market internationally that might compliment your own. It’s simply a case of thorough research
One of the main factors to take into consideration when trading internationally is finance; this is again going to involve thorough research.
Whichever country or countries you choose to trade with you will need a very comprehensive knowledge of their currency both in relation to your own currency and the value of your product or service.
One of the more secure ways to trade internationally is with letters of credit, these are a banking instruments you use to ensure that you’re paid, if you have a letter of credit against any transaction you are guaranteed to get the money as long as you adhere to a set of criteria that you agree with your customer at the outset.
When it comes to international trade, you should always make sure the export price has been carefully researched and you understand the different elements of that price, this means your product or service is very unlikely to be marketed at the same price you might charge in the UK.
There are several factors you’ll need to take into consideration before concluding a price you wish to market your product or service at. The first is how much it might cost you to collect and convert any foreign currency.
Secondly, you’ll need to make sure all your logistics are covered and thirdly, you will have to do some form of market research too and this cost will also need to be covered in some shape or form.
These are just three very generic points and you may come across much more especially when you start to deal with the specifics of individual countries.