External Expansion Limited

Monday, 18 August 2014


Normally the transformation of a national company into an international should be done through a gradual process, gaining commitment as more knowledge is acquired of the external market and the variables inherent in this.

This process is technically known as internationalization, which is the set of activities of a company outside markets which are their natural geographical environment.

There are several reasons why Companies engage in this process, and some of them, are the need to keep growing in its sector, its domestic market is covered, have excess manufacture, recognize that operating in international markets diversify risk and earn prestige in its natural market, and because economies of scale obtained by exporting worldwide and the international market is more profitable.

On the opposite side, many companies do not undertake this process because of several obstacles, such as the financial issues which represent the lack of access to credits for export or import and the high volatility of the exchange rate depending on the country of origin. Both financial obstacles can be overcome with a good foreign trade consulting and an international advisory team to teach you how to export and import, helping to diversify risks, compensate for the results and access to international finances, although there are various mechanisms and official aids, to access to these conditions must be met as billing abroad and a percentage of ownership in other companies, and it is expensive to hire these kind of official consulting companies in exports and imports. There are trade barriers, such as non-recognition of the opportunities offered by international trade due to lack of access, contacts and knowledge of potential buyers or sellers overseas, as well, how to act in the target foreign market. Generally, the employer often wonder if your product serves to be sold abroad, if he/she have time to devote to marketing, if he/she have the right staff, how to plan the trip, etc. Such obstacles can be overcome by making a good trade management combining the company’s own resources and the support of a consultant in international trade that put this services at your disposal. The logistical hurdles such as high transport costs, coordination and control are overcome through the unification of markets, the new channels of communication, distribution and sales. Cultural barriers such as language, also called linguistic barriers, tastes, manners and traditions are easily overcome with existing services provided by the external manager, the standardization of products in terms of quantity and quality, the uniformity of the tastes and needs of consumers in the developed world. Legal restrictions imposed by governments (tariff barriers with customs duties and non-tariff barriers for quality controls, health, technical specifications, safety standards, etc.), have an easy solution with the needed export or import formalities and are well known by international consultants. The barriers in direct investment imposed by governments such as controls on company property, restrictions on repatriation of profits, the compulsory local content manufacture products or hire labor in the country and the limitations of the number of foreign employees have solutions through its international trade consultant who will identify the problem, correct the situation, improving or creating a new one, because with a clear goal provided by a consultant to foreign trade, will be provided with extensive knowledge and experience in these cases helping to eliminate protectionist barriers.

Finally, we can ensure and guarantee a good internationalization process will bring significant benefits in different areas of your company, because production level use more production capacity, get competitive advantages over other companies in its sector and rationalize an optimal production. On a commercial level, access to a wider market means greater stability in sales and customer proximity, improving the image of your company both internally and externally.

As a private agency specialized in international trade we will provide a method that allows you to diagnose problems, propose solutions and assist on the implementation of the internationalization process that you consider appropriate to apply in your company.

With our manager or managers of foreign trade you will have pre-defined the cost and time needed to reach the objective. You can also compare their ideas and knowledge and continuous recycling in our international consultancy has allowed it, given our impartiality, reinforcing and justifying taking tough measures by the management of your company.

We know of the existence of many companies with ability to export or import and perfectly prepared for it, and not carrying out what they do not know or even own limitations, such as tremors and other restrictions imposed by the owners or management.

For more information or require services related to this article, please contact through our website www.externalexpansion.net or directly our email info@externalexpansion.net.
Until the next article...

Leonardo Dufau

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