International trade

You will quickly discover that there is no shortage of information on international trade and investment.

Many firms, especially those that focus on design and problem-solving, sub-contract the manufacture, and maybe other functions as well, to specialist contract manufacturers.

It is important to consider the logistics of moving your merchandise to your customers. For businesses considering international trade, however, it becomes a crucial part of their decision making and planning process.

Many countries seek to discourage imports through the imposition of tariffs, quotas and non-tariff barriers (NTBs) though they may agree to make concessions to selected countries, usually in exchange for some sort of trade agreement.

Foreign direct investment (FDI) is an activity where an investor sets up or invests in an enterprise in a foreign country with the intention of acquiring a lasting interest and at least a degree of management control.

Unlike selling domestically, selling internationally requires that you think about many requirements, some of which are legal requirements and some of which may affect your level of profit.

Many first-time exporters express concern over how they are going to manage the distribution and marketing process in an overseas market. Many are also concerned that the process might be taken out of their hands and that they might have to surrender some control.

In many countries it is now a requirement to demonstrate that you “know your customer”. Some people now talk about the need to “know your business” (KYB) and use the phrase “know your customer” (KYC) to refer to individuals.

Preparing forecasts will help you to assess your likely sales income, costs, external financing needs and profitability. Financial forecasts are essential if you need to raise money from a third party, such as a bank.

Thailand is the second largest economy in ASEAN and has a long history of cultural and trading interaction with India, currently assisted by India’s ‘Act East’ policy and Thailand’s ‘Act West’ policy. Thailand and India are supporting the development of a new maritime route in the Andaman Sea which will almost halve the travel time and will contribute to the Thai government’s objective to boost trade with India.