Trade Export on the Rise in Asia?
Trade export may be on the rise, according to Forbes. South Korea reported a more slowed decreased than in the last eleven months. China and the United States have seen an increase in demand, which experts believe that global trade may be on the rebound.
‘Exports are on a clear recovery path and they will post positive growth in the fourth quarter helped by the base effect. It is hard to find a major obstacle to recovery,’ said Kim Jae-eun, an economist at Hyundai Securities.
Officials have cautioned that South Korean exporters, though their successful push to diversify markets helped leverage them away from the worst of the global economic downturn, but could very quickly lose competitiveness if they rely too much on a weak currency rather than in manufacturing costs.
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Exports Rise, But Consumers Still Cautious
According to the Wall Street Journal, consumers do not show a postive outlook to the economic upturn although exports have strengthened.
”Since April, the sentiment index has fluctuated in a range of 65 to 71, which is characteristic of weak spending,” wrote IHS Global Insight U.S. economists Brian Bethune and Nigel Gault. “We don’t expect that consumer sentiment will break out of this range until job growth resumes next spring. Meanwhile, consumer spending is likely to show only sluggish growth and be a relatively weak contributor to the recovery.”
A recent survey from the University of Michigan asked consumers about their finances. One out of six reported they saw an improvement in their finances and only one in four expected growth in their income in the upcoming year.
But, on the brightside, exports have improved slightly by 16 percent. A vast improvement after if fell by nearly 60 percent at the beginning of this year.
“The outlook for U.S. exports is becoming increasingly positive,” wrote Michael Feroli, an economist for JP Morgan Chase Bank, who’s expecting the trade gap to narrow to $26.5 billion in July from $27 billion in June. “Foreign economic growth has returned” with U.S. trading partners growing at a 4% annual rate in the second quarter, on a trade-weighted basis.”
According to the article an improvement of exports is a key driver to helping the U.S. economy in its recovery.
With consumer debt decreasing with less spend, and exports improving. The U.S. may see a more postive outcome by the end of fourth quarter. Time will tell.
For more information on the article, click here.
International Trade Isn’t Just for Large Companies
A recent article, The Idea Of Trading Internationally Can Seem Intimidating. Only The Big Players Do It, Right?, gave me the idea for this blog post. By either offering a small niche product or wanting to expand profit, stepping into an international market can be rewarding. Each situation offers the ability to market to a larger audience and gain more exposure for your business.
How can a small to mid-sized company step into the global trading world? Well, according to this article, here are some ideas.
1. Update your Web site. Add international shipping options to your website. Accepting credit cards makes it easier for the purchaser to buy the product wtihout messing with money orders.
Also, add content in additional languages (use flag symbols to click-through to other web pages). English may be the dominant language on the Web, but offering content in your audiences’ native language is a big selling point. It shows you value their business. The article suggested even buying a local domain, such as www.yourbusiness.ie, if you are stepping into the Irish market for example. Having a country code domain name makes it clear that you trade in that particular country.
2. If stepping into a new market, monitor regional and international competitors. You may have to work harder to step into that regions’ market to win business. Look on competitor websites in each region to determine how it pitches its content to your new audience, and study its pricing stategy. $9.99 doesn’t translate in currency conversion effectively. Another option could be to offer multipy currency conversions on your website by allowing the customer to click on the preferred currency when paying.
3. Stay up-to-date with relevant customs regulations. This is where it can be cost-effective to purchase an On-Demand product from companies who specialize in global trade management, particular thoses who offer low-cost solutions specific for the small to mid-sized markets. Management Dynamics offers an On-Demand solution to help build an Export Management System, called Export On-Demand. This solution can quickly be deployed and configured for an SME exporter. It covers all of the key export compliance capabilities including maintaining reference data, screening trade parties, producing documentation and maintains audit trails.
For more information on Export On-Demand, download a free brochure.
To read the full article on tips for entering the international market, click here.
U.S. Trade Slow to Recover
According to International Freighting Weekly, trade exports into Europe and the U.S. has dropped by 21 percent since the beginning of 2009. The Bureau of Economic Analysis reports, U.S. exports totaled $121.1billon in April, $2.8 billon less than in March. Imports also fell $2.2 billon from the March totaling of $152.5 billon.
However, the Asian markets have improved this year. The Hong Kong Trade Development Council says that overseas buyers have been placing more orders and the Bank of Japan announced that exports are rising and factories outputs have increased at the fastest rate in 50 years.
For exporters in the small to mid-sized companies, Management Dynamics offers a perfect solution to help reduce costs and establish an Export Management System. It’s available on a flexible, on-demand system that can be quickly deployed and configured for an SME exporter. The solution covers all of the key export compliance capabilities including maintaining reference data, screening trade parties, producing documentation and maintaining audit trails.
Read more about Export On-Demand
To read the full article, click here.