Tips For Choosing Export Destination Countries So Business Can Grow

YOGYAKARTA – Businessmen must know how to choose export destination countries to develop their business. Country selection cannot be done haphazardly in order to avoid losses. Therefore, you can consider some of the following tips for choosing export destination countries.

Tips for Choosing Export Destination Countries

As is known, export is the delivery of goods or commodities between countries. In a business context, exports are carried out for trade purposes so these activities are mostly carried out by entrepreneurs.

Exports do have the potential to make a business grow, but the impact could be the opposite if export activities are carried out haphazardly. Export destination countries must be considered properly to minimize the risk of loss. To avoid this, follow the following tips.

1. In-Depth Research

The first thing to do before deciding to export a product is to do market research. This activity aims to dig deeper information about the countries that are export destination options. Research is also carried out to finalize other matters, for example, the amount of market demand in a country for certain products.

Business people also have to compare the advantages, disadvantages, opportunities, and obstacles that may arise when the product starts to be marketed in certain countries. To do this, entrepreneurs can submit it to the research team.

2. Trade Balance Research

Business people are advised to compare the trade balance relating to exports and imports of the target country. This is important because it relates to the strength of the currency and the amount of potential that exists in a country.

When a country's exports are greater than its imports, the country's currency is strong. Conversely, if imports are higher than exports, it means that the country is not viable. However, if the value of exports and imports is the same, it means that the trade balance is balanced. Avoid a stable trade balance in order to expedite the export process and business expansion.

3. Learn Destination Countries Through TradeMap

In general, the Trade Map website is a site that provides information regarding statistical conditions of trade in various countries. This site can be used as initial capital for export activities. The Trade Map website provides information and statistical data for a country, including showing how the country is performing in terms of imports.

4. Consider Entrance Fees

Also, consider the entry rates of a country. You can choose potential countries that have low entry rates. This was done in order to save operational funds. In addition, the benefits that will be obtained are also multiplied because there is no need to pay the amount of the country's entry tariffs.

5. Competitor Check

Even though the product is claimed to be original, it does not mean that other companies cannot become your competitors. There is always trade competition in every country, therefore you should be able to do research on your competitors in a country's market. You have to know how much strength the product is likely to be a competitor. Local competitors usually quite difficult for products from abroad and have the potential to shift the position of these products.

6. Consider Factor X

The X factor in business is usually associated with out-of-reach things such as natural disasters. When you target a country as an export destination, consider anything that might disrupt the distribution of goods. For example, to get to country A, you have to pass through a forest with a deep ravine so shipping via air will be more profitable and likely to be safe.

Those are some tips on choosing export destination countries. Visit VOI.ID for other interesting information.