HELPING UNDERSTAND THE
NEW ERA OF INTERNATIONAL TRADE
So, what’s new about today’s international trade that didn’t exist before?
Different peoples and cultures trading between each other, even over great distances goes back many thousands of years,
even before the introduction of what we would recognise as currency in the form of coinage. The silk route between Europe
and Asia is, perhaps, the classic example. Trade was then mainly a form of exchange or barter in goods and the timescales
involved were also enormous by today’s standards.
Although profit and wealth creation are still the driving force, much has changed over the years. Key to this change has been the advance
in communications and transport allowing greater freedom for both buyer and seller and also speedier delivery of the goods.
The UK and Europe have also traditionally been leading players in both the development and manufacture of a wide range of
products, which have found ready markets around the globe
However, times are changing fast, with many of our traditional markets having now developed their own manufacturing
abilities and new technologies. India and China are good examples of this phenomenon. Whilst this has meant greater
competition, the increase in spending power in these countries has also created even greater markets.
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So how can your company compete in these markets?
Quite simply business has to continue to change so as to meet these new demands and opportunities. For instance today’s
successful international trade requires a higher degree of client knowledge, which includes both ethical and cultural awareness.
The supplier/client relationship also needs to represent more of a partnership of equals, if longer-term business and the
resulting benefits are to be gained.
Those businesses which are able to undertake this wider agenda are already benefiting through developing more appropriate
forms of trading partnerships which can range from a simple strategic alliance to a franchise or joint venture. In this way
new markets can be accessed and joint production and technology programmes developed.
However, it is not always easy to determine the best solution, which will be different for virtually every company, and
even one route may not satisfy every requirement. A sound decision-making process is vital, especially where some of the world’s
more challenging markets are concerned.
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