It’s a Small World
Our 21st century world is more interconnected than ever before. Fast developments in technology, transport and infrastructure have made resources more accessible on a global scale by effectively ‘shrinking’ the very place in which we live – making it quicker, less-expensive and more efficient to share goods, services and knowledge.
In terms of ‘physical’ international connections, it is fascinating to consider the changes seen in both local and international journey times over the years. A striking example is that 100 years ago, a person travelling to Australia from the UK would have had to set aside around 45 days to complete their journey by boat – and that is just in one direction! Compare that to today’s approximate one-way journey time of 24 hours and you have a sense for how far transportation has come in just a century. And the snowballing pace at which technology continues to develop points towards a world with even greater potential for increased global connectivity.
Business on a Global Scale
So, the ‘shrinking’ of the world continues to bring major efficiencies to the way we travel and interact, but also to the way people buy and sell. World markets are more connected, presenting new opportunities worldwide as markets become easier to access, and also more accessible financially. E-commerce continues to flourish; people have instant access to products around the world in just a few clicks online. This also means courier companies are developing their services to meet the challenges of increased international demand.
The UK’s decision to exit the European Union in 2016 sent shockwaves around worldwide politics and business, but it also highlighted the country’s heavy reliance on international trade. Indeed, international trade is vital to western economies and its growth is healthy.
International Markets and Cheaper Technology
People are growing wise to the opportunities for buying cheaper goods internationally. This is particularly relevant to the technological sector where companies such as Xiaomi are giving people access to high-end technology at affordable prices. Xiaomi is an example of one of many up-and-coming Chinese companies breaking down financial barriers to people by giving them access to previously unattainable technology and products. Businesses are taking advantage of these trends by casting their nets into new markets.
Why Do I Need Help Trading Internationally?
Perhaps your business is yet to venture into international trading, or is just starting to make its first steps. It is worth knowing that trading internationally is not without its risks. Naturally, given the increased distance between buyer and seller, there is greater potential for problems to arise. That, combined with currency fluctuations and the potential for delayed payments may act as a real disincentive to your business. However, trade finance options – such as those offered by Touch Financial – can make international trading viable by providing your business with upfront payments – helping to make the process as efficient and painless as possible. Financing options such as those can reduce the inherent risks of international trade, and your business could go on to reap the rewards and reach its worldwide potential.
Have you traded internationally? What were the challenges?