With 70% of the world’s purchasing power existing outside of U.S. borders, global trade is an appealing prospect even to small businesses. This is especially true when you recall some of the data about how international trade is good for Oregon’s economy in general, as well as small businesses specifically. But it’s important to remember that being a great choice for some companies doesn’t make global exportation the right choice for your business. That’s why we’ve gathered three benefits and risks to help you determine how international trade can impact your business.
Topics: Global Trade
Each May is World Trade Month, which makes now the perfect time to explore the role global trade plays in the economy. Given 95% of the world’s population and 75% of consumers reside outside the US, global trade is responsible for a significant number of jobs as well as business stability and growth. This isn’t restricted to major corporations either; small businesses actually have a lot to gain from exporting. Today’s post will highlight some of the reasons and the ways Oregon small businesses can get involved.
It’s believed that 95% of the world’s customers exist outside the United States, and indeed, 70% of the world’s purchasing power exists beyond our borders. Exports have a major impact on the U.S. economy (more than $2 trillion just over five years ago, or nearly 14% of the GDP) and companies that participate in global export are more robust, growing faster while becoming 8.5% less likely to go out of business. You may believe that means only big businesses and corporations can afford that kind of investment, but the truth is, despite the fact that medium and small businesses only represent less than a third of export value, they make up 98% of U.S. exporters.
Did you know 95% of the world’s population and 75% of consumers are outside of the US? Given this, it makes sense to consider “selling to customers outside of the US” (exporting) as a natural extension of your company’s sales channel. With this, it is important to know about the requirements of exporting before you decide to do so. Key considerations are global marketing, global management, supply chain management and trade finance.
As the world becomes more connected, your company has increased opportunities to sell your product worldwide. Did you know 75% of the world’s consumers live outside of the US? U.S. companies that can sell to customers outside the US by exporting their products grow faster and are 8.5 percent less likely to go out of business than companies that do not export.
Making the decision to take a step into the global marketplace can be daunting and mysterious. So many rules and regulations. How do I know what I do not know? What if I do something wrong?
According to the Small Business Administration, only one percent of the United States’ 30 million businesses export their products. This percentage is lower than any other developed country in the world, yet, 95% of all customers are found outside the US. Wow, really?