Geographical and cultural communication barriers are disappearing, and even smaller businesses without a physical presence can buy and sell their products internationally. The advantages of buying and selling internationally are as follows:
Comparative advantage means lower-priced goods.
Comparative advantage is the most common reason why companies choose to source products from overseas. Comparative advantage means that the conditions in a foreign market allow for much cheaper production costs. If you can get the products or materials you need at a considerably cheaper rate, importing is a quick and easy way to cut costs and boost your profit margins.
Importing can mean higher-quality products.
It’s no secret that each country has its own strengths and specialties. If the goods or materials you need have top quality sources outside of your country’s borders, it pays to have them imported.
The most obvious advantage of selling internationally is the expansion of a company's market. Expanding the places where a company does business and selling its products and services opens up a larger customer base and potentially greater profit margins.
International buying and selling can have a unique advantage of helping to boost a brand's reputation. Right or wrong, customers perceive a brand that is selling in multiple markets to be of higher quality and better service than brands that just sell locally.
The idea that a business relies solely on one market and directs all its resources into a single currency may prove to be more risky than it may first seem.Your home market could contract or even disappear, but your business may be saved by the revenue it generates overseas.
When working with companies overseas, both you and your customer will want to execute the transaction in the safest and most efficient manner possible. One of the many advantages when trading internationally is that overseas payers often pay upfront. This reduces payment risk and may well help your working capital.
P&G Business Consulting is willing to partner with you in assisting you to buy and sell your products internationally. We can assist you to source for distributors of your products in overseas markets, as well as in negotiating the terms and conditions and drafting a purchase agreement. Contact us to partner with you in buying and selling your products internationally.