What Are the Pros and Cons of International Trade?

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When you head to your favorite shop in town, you may not realize that the purchases you make effect communities far from where you live. If you buy foods, clothing, books and toys that aren’t manufactured in your area, you benefit not only the store which carries them but the corresponding companies that produce the goods you use daily. For decades, our relations with foreign nations have shaped the way people here do business, yet in recent times the call to support local farmers and manufacturers has gained strength. As a consumer, it’s good to know the pros and cons of international trade as they effect you, your community, and the country.

Does trade with other nations hurt or hinder domestic economy? The novice student of international relations will be aware of which countries do well importing into and exporting from the Americas, while domestic workers may charge that foreign industries take away jobs. There are pros and cons to global industry, some of which are detailed here.

Pros of International Trade

  • Trade may offered goods and services not readily available through domestic or local distributors. There are certain plants, produce, and resources indigenous to foreign countries that we may not be able to make here. Even if it is possible, product quality may be better in the imports brought into the States. While it is nice to enjoy wines grown in California and Virginia, for example, some varietals of grape grow best in Italy and France, so if you want them you will need to connect overseas.

  • Some foreign imported goods may come at a better price in the long run. Even with shipping and transportation costs, some products may be ordered at affordable rates, depending on what you want. If that particular manufacturer is able to create bulk numbers in a reasonable time, domestic businessmen may benefit more.

  • Trade connections can increase awareness of and interest in American products. The more businesses deal with outsiders, the lines of communications are open to sell products as well as buy.

Cons of International Trade

  • Perhaps the biggest obstacle to overcome, speaking of lines of communication, is the language barrier. When dealing with distributors in countries where English is not a main tongue, one can become frustrated by such roadblocks. This in turn could lead to problems with delivery and orders.

  • Natural disasters and international conflicts may cause delays and breakdowns in supply chains. Retailers who previously bought coffee from Haiti and products from Japan likely had to rearrange their inventories until both countries are fully operational again.

  • As mentioned briefly above, domestic employment factors into trade as well. Jobs may not be completely lost to other countries, but many workers may find they need to alter their lives to suit changes in the economy.

One can see both sides of international trades – the benefits and challenges. How you make global business relations work for me depends on what you need, where your market is, and how you can overcome obstacles that threaten your business.

Now Is the Time To Break Into the US Market and Sell Your Products and Services

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Some have said that the Trump Administration has made the US is an unfriendly place to do business for foreign companies. The political opposition says that the threat of tariffs and trade wars causes uncertainty in global markets and is not good for the US economy. Those who call themselves ‘traditional free traders’ have sided with Trump’s political opposition, at least temporarily. Personally, I see just the opposite.

First, I see more foreign money coming into the US market to seize the opportunities of low corporate tax rates, and as a way to avoid potential tariffs. Further, I see temporary tariffs as a shot over the bow that the US will not be played with unbalanced trade agreements or lack of fair trade agreements. These temporary trade tariffs will bring billions into the US government’s coffers while trade negotiations happen, and our foreign counterparts will rush back to the table to renegotiate with more favorable terms. No international company wants to skip the US Market, it’s too big, and there is far too much money here.

Why Should Companies Move Operations to the US and Establish Themselves Here?

The United States of America is the largest consumer market on the planet. In 2016 and then again in 2017 the US consumer market alone was nearly 13 Trillion Dollars, and that doesn’t account for another Trillion or two in unreported sales – cash transactions in the underground economy, which includes everything from a kid’s lemon aid stand or house maid to a handyman remodeling a kitchen. And, realize at 13-15 Trillion, this is only the “consumer economy” and has nothing to do with what businesses spend or the US government spends annually.

The Federal Government, not including state governments or local governments, has a budget of $4 Trillion. State Governments total an estimated $2 Trillion and all the local governments combined also near $2 Trillion. The total government spending for fiscal year 2018 is estimated to be around $7.5 Trillion. Guess how much US businesses spent in 2017? It’s so huge no one can figure it out, it’s so mind-boggling that it makes the rest of the world’s economies look like child’s play. Did you know that 2018 business spending is already on course for a 7% increase, even with a so-called trade war scare?

The United States is not only the largest consumer economy by far, but it is the largest for government and business spending as well, and second place isn’t even close. If you are not in the US Market selling your goods and services you are missing out. Are you ready to go for it? If so, there are plenty of US based international business consultants here who are ready and willing to help get you set up. Here are some of the things you’ll need to enter the greatest market in human history;

  • Business Plan
  • Marketing Plan
  • Set Up Books – Accounting
  • Business Name Registration
  • Business License Acquisition
  • Business/Commercial Insurance
  • Website with email addresses
  • Tax Strategy and Tax Planning
  • Set Up Books – Bookkeeping/Accounting
  • Business Location and Rental/Lease Negotiation
  • Business Corporation Formation
  • Setting Up Bank Accounts (Business Checking)
  • Start-up Business Coaching
  • Start-up Marketing Consulting

If you own a business that sells internationally, you’ll now need a US base of operations, and you’d be wise, very wise to do it sooner than later to take advantage of this booming economy.

3 Factors To Consider When Hiring An International Cargo Shipping Company

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You’ll want to avail of the best services when doing business with an international cargo shipping company. What are some factors to look for to make sure of that? Primarily, take into account that there is excellent communication between you and your international cargo shipping business provider. You have to guarantee that the company you’re hiring knows your needs and expectations. At the same time, you should expect the company to be able to explain to you all the necessary information about their pricing, services and their overall system and approach. Consider that different companies have different ways and means in delivering their services. You thus have to make the best choice about the company you’re hiring to transport your cargo to another domestic or international destination.

Choose an experienced and trustworthy international cargo shipping company. Take note if they are able to offer their services with excellent communication. Are you satisfied with their customer service? There are 3 factors to consider when hiring the services of an international cargo shipping company, and they are the following:

  • Customized service– There are many options to consider in terms of services when you’re sending cargo abroad. You’ll basically have to choose from different types of shipping containers for sending your items. Another option is whether you need assistance in packing. Do you need port-to-port services or door-to-door services as well? Customers hiring cargo shipping have different needs, and you therefore have to note if the company can cater individualized services. Include the specifics of where from and where to you’re sending your cargo, the time duration of the shipping, the budget you are allocating and the type of cargo you’re sending, among others. Consider if the company is able to communicate these options in an efficient and helpful manner. Is the personnel able to guide you in choosing the right options for sending your cargo?

  • Transparency in pricing– Choose a shipping company that presents transparent and straightforward pricing. They ought to have complete facilities for this, such as an online freight quote tool. Using the tool, you should be able to compare prices with other companies. There should be a toll-free number that you can call to clarify whatever questions or needs you have so you’ll be thoroughly in-the-know before sending your cargo abroad.

  • Cargo tracking tools– businesses are running high-tech these days and you don’t have to wait for weeks to obtain necessary information for your concerns. Choose an international cargo shipping company with complete facilities and equipments, including a cargo tracking tool for international shipments. With a cargo tracking tool, you don’t have to be frustrated about the whereabouts of your cargo while being shipped across the seas. Latest technological innovations enable cargo tracking devices to provide information while the shipment is in ocean transport from the pick up location to the destination. With access to a cargo tracking tool, there is no need for you to wait for hours at the phone to obtain information about the shipment. Just a few clicks at your keyboard and you’ll be aware of the location of your cargo while in transit.

Doing business with an experienced, trustworthy and fully-equipped international cargo shipping company will give you a satisfactory and worry-free shipping experience.