New Realities in Trade

NEW GLOBAL REALITIES in TRADE and EXPORTS

Yogi Berra once said “the future ain’t what it used to be”, and while the World has undergone major shocks and transitions in trade over the past 25 years, it was only in 2014 when Trade in Value Add (TiVA) and Integrative Trade reporting methods finally provided the accurate and timely information needed to understand what the future had actually become.

Foreign Affiliates of Canadian firms are now responsible for over 50% of Canada’s exports, or in other words, most of Canada’s value added exports, related job creation, and strongest growth are actually located in foreign countries.

The new global realities in trade are that; Global Value Chains (GVC) and associated Foreign Affiliates will continue to be the strongest driver of growth in exports; that services will continue to dominate over manufactured goods; and only those firms with Foreign Affiliates will be competitive in international markets.

See the following topics for more information on how your company can use the new realities in trade to successfully expand into international markets.

International Expansion 300 300INTERNATIONAL EXPANSION OF OPERATIONS

Whether you decide on a wholly owned Foreign Affiliate, a Joint Venture Partner or other arrangement, XPM can help provide a soft landing, from the initial concept through to profitable reality.

 

LEARN MORE

forex 300 300FOREX RISK MANAGEMENT PLANNING

Custom designed, strategic foreign exchange risk management methods for SME exporters making regular sales with short lead times. Maintain your competitive advantage and profit, even during periods of exchange rate volatility and uncertainty, and gain the ability to quickly arbitrage currency movements in your favor.

LEARN MORE 

Offshoring cost reduction 300 300OPERATING COST REDUCTION

International operations can offer excellent opportunities to lower costs, that in many cases can exceed 50% reduction. Many of your competitors have already gone global, and acquired significant advantage through cost savings, higher productivity, and faster time to market. When are you planning to join them?

LEARN MORE

GVC 300 300GLOBAL VALUE CHAINS – THE ENGINE OF EXPORT GROWTH

Global Value Chains (GVC) have been the engine driving exports since 1993, and now account for over 50% of Canada’s value added exports whereas exporters without GVC have declined significantly since 1990. The message is clear: if you want to grow, then set up a GVC.

LEARN MORE

innovation strategy success 300 300GROWTH via SCALING

Companies successfully implementing at least 3 of the 4 Scaling strategies account for over 50% of Canada’s exports, whereas exporters relying solely on Growth, have seen their market share decline since 1990. Simple to understand and deploy, the use of multiple Scaling strategies are the key to achieving international growth.

LEARN MORE

Entreprenuerial Startup cropped 300 300FOREIGN AFFILIATE & OFFSHORE BUSINESS DIVISION

As an incorporated business in a foreign country, a Foreign Affiliate can sharply reduce costs, helps manage Forex risk, and provides preferential access to new business and markets not available to outside firms. In many cases Foreign Affiliates qualify for incentives such as income tax holidays, duty free importation, and other incentives that can add to the bottom line.

LEARN MORE

multicultural managmenet 300 300CROSS CULTURAL MANAGEMENT : A SOCIAL OBLIGATION

International business is based on relationships, not transactional contracts, and any firm with international operations should be prepared to adapt. Any firm entering a foreign market should be considered a social obligation to adapt, and if done right, will sharply reduce conflict and help guarantee long term success.

LEARN MORE

Cross cultural management obelisk 300 300GLOBAL COMPETENCE & GLOBAL CAPACITY

Two critical success factors for international operations, a firm must acquire Global Competence and Capacity. Beginning by learning the local language and culture, it develops into a all encompassing attitude that embraces change, thrives with ambiguity, and enthusiastically accepts cultures, beliefs, and others religions etc without prejudice.

LEARN MORE

egal considerations 300 300LEGAL CONSIDERATIONS IN INTERNATIONAL EXPANSION

Be sure to ask the right questions; but the right answers are only those that are in cultural context to both your needs – and – the actual operating environment you will encounter.  In many cases, the letter of the law is far removed from how day to day business is actually conducted. Therefore, if the answer is simple then it is unlikely to be “right” for you.

LEARN MORE