One common mistake is to think that international business relationships are only meant to big, multinational corporations. These aspects can be daily used by small companies or even independent worker, but it’s mandatory to know some principles in order to be ready to face this world.
International business relations, as we mentioned, aren’t just part of big companies. For example, an English man who hires a web developer in Argentina, or someone who produces its clothing in the Spanish market, is also doing this type of business.
This is the main reason for having agreements between countries, since it’s a need to those who are willing to work with it.
In this article we want to give you some information about the skills you need in these activities, in order to boost your abilities. Learn 5 of them:
Languages: English and Spanish
Every language you speak counts, but it’s also important to know that out in the market there are two languages that are highly demanded and spoken around the world: Spanish and English.
Since you’re an English speaker, you’re half way there. This is why you will need to learn Spanish. This includes both written and spoken. This will open new doors and will let you negotiate with people around the world.
Foreign exchange knowledge:
It isn’t necessary to be an expert in the sotck market, but you should know the values of the currencies you work with to detect possible business opportunities.
The value of money is variant and fluctuates a lot between countries, so being aware of these changes will help you improve your margins and profits.
For example, if you have a web development and SEO positioning company aimed to Norwegian companies that want to enter the Spanish market, you’re paid according to the cost of living in Norway, which can represent a higher income rate than in your country.
At the same time, you delegate the creation of the web to a good designer in Mexico. You will pay him in Euros, with a higher value than the Mexican peso. So the currency exchange will mean a very decent salary for your designer and an affordable cost for you.
This is an example of how your knowledge of languages and currencies has been useful for international business, adding value to companies from different countries and to you.
Who should you buy and sell?
In this question lies the possibilities of success. For this we must deal with two concepts:
- Sell to a country where the product you export is necessary.
- That the country has a high cost of living, since this leads to higher wages. If the market has a good purchasing power, they can pay for what you export.
The best products of the countries end up being exported to other countries with greater purchasing power in order to make it profitable.
Learn about tax laws in other countries:
Another key to success is to have some ideas about what the law of the country you work with says. Being informed about tariffs, customs, VAT, billing limit will allow you to close agreements with less risk. It will also be useful to know how business creation or self-employment works in other countries. You never know if at some point moving there becomes an opportunity or even to set up a branch. There are countries much friendlier than others for business.
This is the most important strategy you must apply to reach foreign markets, whether you sell a product or a service. To take it forward you will need a website in the official language of the country in which you wish to sell and, in addition, make positioning campaigns in the target market. This will boost your visibility. The Internet is really a very useful tool to create opportunities to expand markets for products and services.
Internet changed the way we conduct international business. The detractors of globalization consider that it is counterproductive for companies and jobs due to extreme competition. However, it has also enabled the creation of new jobs that did not exist before. A new generation is adapting to new business models. It will depend on how you look at globalization to understand what are the advantages and disadvantages that it produces.
Globalization has boost creativity and equal opportunities for people around the world, now anyone can create a competitive business from home, which was previously reserved for those who had a large capital to invest. Someone from India can set up an online business with a US partner.
The last advice to carry your international business or any other type: never stop training!