When you walk into your local supermarket and pick up a bottle of American wine, a wheel of French cheese, or a pack of Kenyan coffee, you’re enjoying the benefits of international trade. However, although international trade is something many of us take for granted in our everyday lives, it’s something very few of us consider for our businesses.
Now, taking your business to the international market is undoubtedly complex. However, leaving the confines of the Baltics and trading internationally actually has a number of benefits. Here are three of the very best reasons why you should be trading internationally.
Broaden Your Customer Base
In the Baltics, you have over 6 million potential customers. But, if you expand your business to cover all of Europe, you can reach almost 700 million people. Should you choose to take your business worldwide, your potential reach grows to 7.5 billion people.
When you start trading internationally, your potential client base grows, and you’ll discover plenty of opportunities to take your business to the next level. After all, it’s estimated that, for every new market you enter, you could double or treble your revenue potential.
Take Advantage of Market Fluctuations
When you trade internationally, your business can also take advantage of the ever-changing currency prices to get the best possible deal on its products. For example, if the Indian rupee (INR) is weak against the euro (EUR), then you may choose to have your goods manufactured overseas. If you pay for these goods in rupees, you’ll lower the overall cost of purchasing your goods when compared with making them here in the Baltic Region.
On an individual level, this form of market speculation is what many investors do when they’re trading CFDs (contracts for difference). In fact, many of the best CFD brokers offer lots of educational content, such as webinars, seminars, and video tutorials, which can be useful for your business. This is because many of these brokers offer market analysis tools and economic calendars, which can be used to help your business plan international activities depending on impending market movements and data releases. For example, if you know the euro may strengthen against the rupee because an upcoming data release looks like it will be favorable for the Baltic economy, you can withhold your business until this point, maximizing your economic gains and gaining the best possible deal on your goods.
Spread Risk and Improve Stability
Banks view many businesses that trade overseas and export their goods as being more credible and more likely to stay in business than those who only trade domestically. This is because businesses that are active in more than one market are less susceptible to domestic and regional market swings, such as tariffs and tax increases. So, although you may view going global as a risk, it’s actually a good way to diversify your company’s income and will leave you less exposed to market movements. Much like how an individual trader wouldn’t leave all of their investments in a single stock or currency, a good business should also utilize multiple revenue streams in case one dries up.
The invention of the internet and the advancement of technology have made it easier than ever for businesses of all sizes in the Baltics to benefit from international trade. So, isn’t it time that you opened up your business to the world of opportunities that international trade can bring?