Author: Luz Ruiz

Blog1900_ExportingaAndMarketDiversitification

Global economic crises are the strongest proof that a company always must be prepared to face adversities. One of the most efficient ways to mitigate the risks associated with having the entire business investment in one place is to take the products or services to new markets; to export.

 

Diversification helps, among other aspects, to take advantage of the benefits that other markets may have (in addition to the fact that a greater number of consumers will be reached, and profits can be increased).

 

The Hartford states that one of the advantages of exporting is that it means “Diversifying market opportunities so that even if the domestic economy begins to falter, you may still have other growing markets for your goods and services”.

 

ADVANTAGES

Currently, there are foreign trade agreements between most countries worldwide, which seek to protect both parties (the one that exports and the one that matters), which makes doing business easier.

 

Although it’s a common belief that only large companies can think about exporting, that is not true. For example, according to Statistics Canada, many of the exporters in Canada are SMEs; 97.4 percent, to be precise. Nearly 41 percent of Canadian merchandise exports by value are exported by these SMEs. According to smallbusiness.alberta.ca, small businesses make up 95 per cent of all businesses in Alberta.

 

You’ll just have to choose what is the best option (speaking about new markets) for you and your business (a company is more likely to choose the right market if it has a clear picture of its business strengths and resources).

 

CHALLENGES

According to EDC Canada, “expanding into international markets is no small feat for a company that has never ventured beyond Canada borders. This is particularly the case for smaller exporters, who often lack the financial means and international business expertise to ensure success abroad. Naturally enough, these smaller firms tend to look at exporting in terms of the production, sales and distribution strategies that have worked at home. Unfortunately, these strategies may not work given the cultural, logistical, financial and marketing challenges of international trade. Taken together, these challenges present a company with a complex and unfamiliar context for doing business. Having a well-thought-out export strategy can help a firm fit itself into this new context and increase its chances of success overseas”.

 

Fortunately, Infinitus can help you to overcome all the challenges that come with the exporting process, from selecting the appropriate market for your business to build new commercial relationships in other international markets, we offer you a wide range of services that covers the whole process.

 

Contact us and let’s build together the best market entry strategy for your business!

 

SOURCES:

https://www.nibusinessinfo.co.uk/content/business-growth-through-diversification

http://publications.gc.ca/collections/collection_2016/edc/ED5-20-2015-eng.pdf

https://www.imd.org/research-knowledge/articles/diversification-key-to-global-expansion/

https://www.edc.ca/en/article/guide-to-trade-diversification.html

https://accessprosperity.ca/4-reasons-diversify-export-markets/

https://www.thehartford.com/business-playbook/in-depth/benefits-export-business

Blog1900_ReasonToExportKuwait

Kuwait occupies a strategic position in the Arabian Peninsula (surrounded by Iraq, Saudi Arabia and the Arabian Gulf), according to export.gov, “about one-third of an estimated population of 4.5 million are Kuwaiti nationals. The remainder consists of expatriate residents hailing from more than 80 countries”.

 

Some of the reasons you should consider exporting your products or service to Kuwait are:

 

IMPORTS

Export.gov states that “Kuwait imports most of its capital equipment, processed foods, manufacturing equipment, and consumer goods. Two-way trade is limited to a few international partners. Almost half of the country’s imports originate from China, the United States, the UAE, Japan, and Germany”.

 

STABILITY

Kuwait has a reputation for being one of the politically stable and efficient countries in the middle east. Furthermore, its transparent government structure makes it a better place to conduct business.

 

MARKET STRENGTHS

The Department for International Trade UK says that these are some of the strengths of Kuwait:

  • Free trade zone
  • Stable regime
  • Strategic location, close to other Gulf markets
  • The Kuwaiti dinar is highest-valued currency unit in the world
  • Friendly living environment for foreigners
  • More than half of Kuwait nationals under 25
  • Moderate business costs

LANGUAGE

While Arabic is the official language of Kuwait, English is still widely spoken. It is used during business negotiations and is the compulsory second language in schools. Therefore, foreign investors find it easier to communicating with customers, local partners and suppliers.

 

TAXES

Kuwait does not impose several taxes, including personal tax, value-added tax, and property taxes.

 

CHALLENGES

Among the most important we can name

  • The slow speed of decision making
  • Extremely hot weather in summer season slows down outdoor activity

With Infinitus help, you’ll be able to develop a unique market entry strategy to introduce your products or services to Kuwait! Contact us to let us guide you during this entire process. Some of the services we offer you are:

  • Advice on regulatory procedures to enter new markets.
  • Introduction of your products to distributors, business partners or final customers.
  • Participation in Events.

And many others that we can talk to you about! Just leave a message in our contact section and will get back to you.

 

Sources:

https://www.gov.uk/government/publications/exporting-to-kuwait/exporting-to-kuwait

https://www.nibusinessinfo.co.uk/content/taxes-duty-and-legal-considerations-when-exporting-kuwait

https://www.nibusinessinfo.co.uk/content/advantages-and-challenges-exporting-kuwait

https://en.portal.santandertrade.com/country-profile/77,kuwait

https://www.healyconsultants.com/kuwait-company-registration/benefits-problems/

https://www.export.gov/article?id=Kuwait-Market-Overview

 

Blog1900_ExportingToUnitedArabEmirates

The United Arab Emirates is one of the world's top 20 largest exporters and importers of commodities. The current population of the United Arab Emirates is estimated to be around 9,692,529 (and 93.0 % of the population is urban).

Successful efforts at economic diversification have broadened the scope of opportunities across all sectors. Free trade zones, offering 100 per cent foreign ownership and zero taxes, are attracting foreign investors.

 

According to Gov.uk, the Strengths of the UAE market include:

  • Its strategic geographical location; Dubai is regarded as a regional hub and commercial capital for the Middle East, North Africa and beyond
  • Large expatriate population
  • A liberal trade regime which attracts capital from across the region

Some of the advantages to exporting to the UAE are:

  • Ease of registration
  • Few restrictions
  • Low taxes
  • Very open and pro-business environment

Challenges

 

However, there as some risks and challenges to overcome if you want to export to the United Arab Emirates. Its vibrant and rich economy attracts the interest of food exporters worldwide, but the challenges that this market presents are not to be ignored.

 

Some very important cultural aspects govern the business environment, from personal contacts to advertising and legal requirements. Islam plays a central role in the region, and it takes some time to understand these traditions that govern almost all aspects of UAE’s existence.

 

Infinitus can help you take your products or services to The United Arab Emirates!

 

UAE is one of the territories where we have developed more commercial relationships and is a market that Infinitus knows very well, since we have successfully introduced several products in this prosperous market. Let us guide you through the process of taking your business to the next level! Contact us to start this new stage of your business plan.

 

Sources:

https://oec.world/en/profile/country/are/

https://www.uae-embassy.org/uae-us-relations/business-trade/trade-export/exporting-uae

https://www.nibusinessinfo.co.uk/content/advantages-and-challenges-exporting-united-arab-emirates

https://www.export.gov/article?id=United-Arab-Emirates-Market-Overview

https://www.gov.uk/government/publications/exporting-to-the-united-arab-emirates/exporting-to-the-united-arab-emirates

https://www.edc.ca/en/country-info/country/united-arab-emirates.html

https://bestfoodimporters.com/es/uae-food-imports-2018-getting-in-touch-with-importers-in-order-to-export-to-this-ever-growing-market/

https://en.portal.santandertrade.com/country-profile/57,united-arab-emirates

https://www.worldometers.info/world-population/united-arab-emirates-population/

Topreason_Singapore

Singapore, an island country and sovereign city-state in Southeast Asia. Singapore maintains a free market and economic growth; it is also currently ranked as the 14th largest export economy in the world.

According to the Pan Asian E-commerce Alliance, Singapore has a highly developed trade-oriented market economy and one of the most open in the world.

Singapore is one of the centers of world trade, has the fourth largest financial center and the fifth port that moves most goods.

Why should I consider taking my products or services to Singapore?

 

Purchasing Power Parity

In terms of purchasing power parity, Singapore is the third country with the highest per capita income in the world, besides being among the first countries in the international lists of education, health, political transparency and economic competitiveness.

Compliance of contracts

According to Eldaa García “An effective resolution in commercial disputes has many benefits. Courts are essential for entrepreneurs because they interpret market rules and protect economic rights. Worldwide, Singapore also ranks first in ease of enforcing contracts. In this country they are aware that efficient and transparent courts encourage new commercial relationships, because companies know they can trust the courts”.

 

Infrastructure
Santander Trade Portal states that “Its telecommunications, financial and transport infrastructures are excellent and its strategic location at the confluence of maritime routes and close to large markets is an advantage. The country offers tax reductions and flexible loan terms among other investment incentives”.

 

Business

According to Doing Business 2019: Training for Reform, a report released by The World Bank, New Zealand has been named the easiest place in the world to do business, followed by Singapore and Denmark. “Singapore earned that laurel through “proactive economic management” such as planning ahead how to accommodate an aging population and on introducing measures to help core sectors such as asset management and finance”. (says Marie Diron from Moody’s Investors Service).

Cross-border Trade

This country has taken efficient measures to reduce:

  • The excessive demand for documents
  • Cumbersome customs procedures
  • Inefficient port operations.

Are you interested in taking your products or services to Singapore? Infinitus is here to help you! We offer you our experience to introduce your goods with a customized strategy that works for you and your business!

 

SOURCES:

https://www.gov.uk/government/publications/exporting-to-singapore/exporting-to-singapore

https://www.export.gov/article?id=Singapore-Market-Overview

https://commodity.com/singapore/

http://www.worldstopexports.com/singapores-top-10-imports/

https://es.portal.santandertrade.com/establecerse-extranjero/singapur/inversion-extranjera

https://www.elfinanciero.com.mx/economia/razones-por-las-que-singapur-es-el-mejor-sitio-para-hacer-negocios

https://www.forbes.com/sites/ralphjennings/2017/06/13/singapore-is-beating-hong-kong-as-asias-best-place-to-do-business/#2e1feafe7468

WomenEntrepreneurLatinAmerica

According to a GEM report, (Global Entrepreneurship Monitor), there are 128 million women in charge of established companies (of all sizes) in the world. The gender gap in the entrepreneurial world has decreased by 30% globally and INC says that over the past 20 years, the number of women-owned firms has increased by 114%.

 

In the study that GEDI (Global Entrepreneurship and Development Institute) produced, called Female Entrepreneurship Index, they explained that “61%, 47 of the 77 countries analyzed, received a score lower than 50% in their competitiveness of female entrepreneurship, but as part of the countries that passed the test in Latam, figure Chile (ranked 15), with a special mention about his performance as leader of Latam, and Colombia (ranked 29). Both are followed on the list by two other countries slightly below 50%: Uruguay (35th place) and Peru (38th place).

 

38% of micro-entrepreneurs in Chile are women. Of a total of almost 2 million entrepreneurs in the country, more than 700,000 represent the female gender. This was confirmed by a study published by the BBVA Microfinance Foundation.

 

KEY WOMEN ENTREPRENEUR CENTERS IN LATIN AMERICA

 

BBVA also states that “According to the eighth annual conference of the network of women entrepreneurs launched by Dell, among the 50 best cities for women to undertake, two (Sao Paulo and Lima) are in South America, while Mexico has two others: Guadalajara and Mexico City. A classification based on areas such as reputation for innovation and entrepreneurship centers that have different cities”.

 

A report from Fondo Multilateral de Inversiones (FOMIN) collects information to better understand them and to explore common aspects of women whose companies have experienced high levels of growth, the report analyzes cases from nine countries in the region, and includes data regarding the average profile of Latin American entrepreneurs:

  • They started their companies driven by opportunity, not by necessity.
  • They are between 30 and 39 years old, live with their partner and have two children on average.
  • They come from families with an entrepreneurial background.
  • Currently they belong to a high or medium-high socioeconomic level.
  • They have a university degree (bachelor's degree or equivalent degree).
  • They trust in their "business sense" and in their technical preparation to start a business.
  • They usually undertake in traditional or mature sectors.
  • They start with the idea of ​​consolidating their enterprise as a medium or large company within their country.
  • They are majority owners of their companies and / or obtain funding through their family and friends.
  • To reconcile the multiple roles that society expects from them, they rely on their closest circle (couple, family and friends).
  • They want to continue growing their company and would be willing to do everything in their power to take it to the next level.
  • In order to expand their companies, they must face certain challenges such as lack of financing, fear of failure and conflict between the multiple roles they play.

How can you get close to these women in Latin America? With our help! One of the services that Infinitus offers you is to connect your business to other commercial partners or distributors in new markets, presenting your product or service to them and building strong partnerships.

 

Sources:

https://www.forbes.com.mx/mujeres-propiedad-intelectual-y-estadisticas/

https://www.workana.com/blog/emprendimiento/mujeres-emprendedoras-en-latam-analisis-de-la-region/

https://www.elmundo.es/economia/2017/11/19/5a0f1fd822601d2a378b45c3.html

https://www.bancomundial.org/es/news/feature/2018/03/07/conectar-mujeres-emprendedoras-america-latina

https://www.cepal.org/es/publicaciones/5818-mujeres-emprendedoras-america-latina-caribe-realidades-obstaculos-desafios

https://www.bbva.com/es/mujeres-emprendedoras-abren-camino-america-latina/

https://www.inc.com/business-insider/more-women-entrepreneurs-today-than-20-years-ago-its-troubling.html

https://connectamericas.com/es/content/en-am%C3%A9rica-latina-y-el-caribe-las-mujeres-tambi%C3%A9n-emprenden