Services
View GuideExport Potential Guide
What is export potential and why is it important for my business? Export potential refers to the likelihood that a company’s service can be successfully sold abroad. Businesses usually identify the export potential of their services by analyzing: customer profiles. service modifications. transportation, shipping, and logistics. local representation in overseas markets. exporting services. business development capacities. Additional information like the export market’s economic outlook and current trade conditions may also be useful. Analysing these areas enables businesses to identify the strengths and weaknesses of their targeted overseas markets and to determine whether and why an export has the potential to succeed abroad. How do I determine my business’ export potential? There are two practical ways to assess the export potential of companies’ services in overseas markets. If you are already selling successfully in your domestic market, look for an overseas market with similar characteristics. Assess the unique features that make your service different from those found abroad and therefore desirable in a foreign market. How do I select my target markets? Online trade statistics are a useful tool, as they provide an overview of markets in target countries. They can show if target countries are already importing the services that your company is intending to export. They also indicate supply levels in target countries. One resource for identifying target markets is the European Commission’s Guide for export of services, (see links to supporting information). How do I find potential buyers? The next step after identifying a target market is to find and connect with potential trade partners and business contacts. For example: Trade fairs are a great place to find business partners, as this is where companies from across the world can meet to explore business opportunities, find potential markets, and use contacts or word of mouth. Events hosted by business support organizations for domestic companies, with the aim of helping local companies explore export opportunities, is another option. There are also an increasing number of online platforms that connect buyers and sellers. In addition to well-known global marketplaces like Clickworker, Amazon Mechanical Turk or Appen, a simple internet search is another way to identify specialized online marketplaces (see the Trad4MSMEs guide on selling abroad online). Links to Supporting Information United States International Trade Administration’s (U.S. ITA) How to Analyze a Product or Service’s Export Potential The Government of Canada’s Step-by-Step Guide to Exporting Getting started: assessing your export potential The U.S. ITA export guide for small businesses Guide_To_Exporting The European Commission’s Guide for export of services. Guide for export of services | Access2Markets The U.S. ITA guide on how to find buyers and partners. Find Buyers and Partners Trade4MSMEs guide Selling Abroad Online IMF (International Monetary Fund) World Economic Outlook World Economic Outlook Google’s Market Finder training Find Global Business Opportunities – Market Finder by Google & (110) Discover International Growth Opportunities with Market Finder by Google – YouTube
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AI Tools for Trade
What Should I Know Before Exporting My Service? Several trends, including digital innovations, have resulted in the rapid growth in the export of services.
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Services Trade
What Should I Know Before Exporting My Service? Several trends, including digital innovations, have resulted in the rapid growth in the export of services.
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Export Readiness Assessment Guide
Is my business export ready? One of the first questions to consider is why Export? What are the benefits? Research shows companies that export are more profitable, more productive and more innovative than those that do not. Research has shown that businesses are 11% more likely to survive if they export. The reasons for this range from spreading export risk amongst different country markets, to increasing turnover and improving innovation by developing specific services for specific overseas markets. Increased Sales – If you are selling well in your own home market, and your service is in demand, exporting is a way to develop new additional sales in other countries. If your services are in demand at home, then there is likely to be significant demand in foreign markets. Higher profits result from increased sales – If you can cover fixed costs through domestic operations or other types of financing, your export profits can grow very quickly. Economies of scale – You can benefit from the cost savings when you produce and sell more services. The benefits from the economies of scale can be very advantageous. Global competitiveness – The experience your company gains internationally will help keep you competitive in both your home market and in the global marketplace. Domestic competitiveness – Successful exporting companies are often more resilient to potential foreign competition. Reduced risk – If you can sell into several different countries, you are spreading the risk. If you diversify into international markets, you avoid depending on a single marketplace and suffering from any domestic instability. New knowledge & experience leads to innovation – The global marketplace abounds with new ideas, approaches and marketing techniques that could also prove successful in your home market. Adaptations to your service for example leads to new innovations and new service development. Trading internationally not only helps with all of the above, in addition trading globally can boost your company’s profile, reputation and credibility. Is my business export ready? We live in an increasingly interconnected world, which means that businesses of all sizes might receive enquiries from buyers in other countries. An export-ready business is one that has the capacity, resources and management to deliver a marketable service on a global scale at a competitive price. To determine if your business is ready to export internationally you can do your own export readiness assessment. Here is a check list of areas to consider Set clear and achievable export objectives. Develop an Export Plan. Understand your service USPs (unique selling points) in export markets. Formulate a realistic idea of what exporting entails and create a timetable for results. Understand what is required to succeed in the international marketplace. Confirm you have staff in place with the knowledge and skills to trade internationally or are willing to learn Is finance in place to help scale up for export? Undertake market research and decided on the best international target markets. These could be neighbour countries who are part of a trading bloc or developed countries with large populations and large purchasing power. Understand international marketing requirements. Research your competitors – both international competitors but also competitors based in the country which you want to export to. Considered any adaptations that may be required. Understand any cultural and language needs. Research your market entry strategy how, and to whom you will sell to in the export markets: Direct sales to a business or consumer / Intermediary representatives / licensing / foreign direct Investment through establishing a company in your target export market Understand destination country regulations, export and import documentation, customs requirements and procedures. You can also use export readiness assessment tools. A typical export readiness assessment will involve answering questions to determine a final score. This score is then used to help guide businesses through the necessary steps to become fully export ready. See the links for more information. Links to Supporting Information The Canadian Trade Commissioner Service Step-by-Step Guide to Exporting(tradecommissioner.gc.ca) Official Website of the International Trade Administration USA Exporter Assessments (trade.gov) Government of Canada Export quiz Are you ready? (international.gc.ca) Caribbean Export Development Agency 10 Steps to Exporting | Caribbean Export (carib-export.com) Kenya Export Promotion & Branding Agency BrandKE – Guide to Exporting
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Exchange rates
What are Exchange Rates? Has your business ever managed a financial transaction to buy foreign supplies or sell products overseas?
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Services Contact Points
What are services contact points? The World Trade Organization’s (WTO) General Agreement on Trade in Services (GATS) requires WTO Members, set up contact points who can make it easier for services suppliers from developing countries to obtain the information they need. The information provided by these contact points concerns commercial and technical aspects of the supply of services in the domestic market; registration, recognition, and obtaining of professional qualifications; and the availability of services technology. Where can I find other resources on this? Services conditions are often specific to a particular location and industry. Places to start when looking for more information on exporting your service include professional associations for your business, local chambers of commerce, or government trade bodies both domestically and in your target market. Links to Supporting Information WTO contact points WTO directory of contact points for trade in services directdoc.aspx (wto.org)
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Trade Agreements Guide
What is a regional trade agreement? A regional trade agreement (RTA) is a treaty or contractual agreement that two or more governments sign to grant each other preferential market access and set rules to govern their trade relations. Through trade agreements, governments agree on a range of obligations. These can include improved market opportunities for services and may also include processes and regulations for trade in services and investment, among other commitments. The General Agreement on Trade in Services (GATS) The creation of the GATS was one of the landmark achievements of the World Trade Organization WTO. It includes the following key concepts: MFN (Most Favored Nation) treatment: Under Article II of the GATS, WTO (World Trade Organization) Members are held to extend immediately and unconditionally to services or services suppliers of all other members “treatment no less favourable than that accorded to like services and services suppliers of any other country” Transparency: WTO Members are required to publish all measures and respond to other member countries requests for information, through national enquiry points. Market access: Commitment from members to negotiate on access to markets. There may be some limitations and Article XVI(2) has details. National treatment: WTO Members are not allowed to discriminate in favor of their indigenous services or suppliers. The GATS agreement was structured to encourage and increase the participation of developing countries in services trade. The GATS does allow a waiver to allow preferential treatment for exporters of services from least-developed countries (LDCs). How can trade agreements affect my business? Trade in services: Businesses can benefit from preferential market access terms for supplying their services in the markets where a RTA is in force. Intellectual property protection and enforcement: Trade agreements increasingly include detailed chapters on intellectual property protection and enforcement. For more information, see theTrade4MSME guide on Intellectual Property. Investment: A RTA can provide favorable circumstances enabling companies to set up a commercial business presence in a foreign market. Investment rules in RTAs (Regional Trade Agreements) or international investment agreements (IIAs) can in some cases protect foreign investments in host countries. More information on international investment policy can be found at the United Nations Conference on Trade and Development (UNCTAD) various tools can help assess the benefits of RTAs and IIAs. What are the different types of RTAs? RTAs are signed on a bilateral (an agreement between two governments) or regional basis (agreements with more than two governments). Governments signing these agreements benefit in terms of preferential market access. They also often contain rules that aim to facilitate trade in services. How do I know if my service benefits from preferential treatment under an RTA? The World Trade Organization (WTO) website has more information on regional trade agreements. Trade agencies, industry associations, and chambers of commerce may also have information on how you can benefit from regional trade agreements. Links to Supporting Information WTO WTO | Services – The GATS: objectives, coverage and disciplines Trade in services. WTO directdoc Directory of country contact points for trade in services. Trade4MSME guide Intellectual Property Considerations UNCTAD Home | UNCTAD Investment Policy Hub Investment information UNCTAD International Investment Agreements Navigator | UNCTAD Investment Policy Hub information on IIAs WTO WTO | Regional Trade Agreements – scope of RTAs Information on regional trade agreements RTAs WTO WTO | Regional trade agreements Regional Trade Agreement Database WTO (16) WTO Database on RTAs Tutorial series – Main functionalities – – YouTube Tutorial on how to use the RTA database I-TIP (Integrated Trade Intelligence Portal) Services World Trade Organization and the World Bank. WTO | I-TIP Services A set of linked databases that provides information on provisions for trade in services within regional trade agreements (RTA). IOE&IT Export essentials: how to make the most of preferential tariffs – The Institute of Export and International Trade
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Intellectual Property Considerations – for Businesses
What is intellectual property (IP) and what are IP rights? IP refers to creations of the mind and includes inventive products or processes...
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Intellectual Property Disputes
What is an IP (Intellectual Property) dispute? An IP dispute is a conflict or disagreement over Intellectual property rights (IP rights).
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Dispute Settlement
What happens if there is a breach of commercial contract? If your business trades with a company based in another country or customs territory, this is classed as ‘cross-border trade’ and effectively it means, in legal terms, that the other party is not necessarily subject to the jurisdiction of courts where you are based. It is important that you get the right commercial agreements in place, and confirm the law applicable to the contract, and a dispute resolution mechanism, at the very start of trading internationally. Although you hope it will never happen, should a dispute arise, it is always better if you can have it resolved in your local court, with your own lawyers and in your own language. If this is not possible and the dispute involves an overseas jurisdiction, this can complicate things and you would need to obtain legal advice familiar with commercial law in both country’s jurisdictions. Points to consider when drawing up a contract: Look to minimise your risk with fair and transparent contracts and terms and conditions. Appoint a legal professional / specialist international trade lawyer to help guide you. Ensure you have a clear understanding of what all your obligations will be under the finalised contract. Don’t accept “standard terms” with which you cannot comply. Ensure you have a clear understanding of what all your obligations will be under the finalised contract. Be clear on the extent of your potential liabilities. It would usually be sensible to try and agree a cap on liability – in many cases this comprises a multiple of the contract value. Deliver on time to the terms of the contract When a breach of an international contract occurs, the parties encounter issues such as: What type of case it is. Where the case will be decided. Which law will be used to decide It is also important to agree on a dispute resolution mechanism at the start, choices can include: Judicial Proceedings Alternative Dispute Resolution ADR mechanisms Arbitration Mediation While choosing the mode of resolution, another factor to consider is where and whether the ensuing judgment or arbitral award will be recognized and enforced. It would not be helpful if, for example, the judgment or the arbitral award was in your favour but cannot be recognised and/or enforced in another state where your other contractual party has assets. The law applicable to the contract will be applied to settle the dispute arising from the negotiation, conclusion, performance, interpretation, or execution of the contractual terms. Links to Supporting Information The International Trade Centre ITC Model Contracts for Small Firms | ITC Model contracts are available free of charge WIPO (World Intellectual Property Organization) Alternative Dispute Resolution Alternative Dispute Resolution (wipo.int) New York Convention for arbitral awards 1958 New York Convention The UN (UNCITRAL) United Nations Commission on International Trade Law and Online Dispute Resolution: On-line Resources | United Nations Commission On International Trade Law
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The Importance of Cybersecurity
What is cybersecurity? Introducing Cybersecurity into your organization is a way individuals and businesses reduce the risk of cyber-attacks. It is also known as information technology security or electronic information security. Using technology and digital platforms for commercial activities exposes companies to cybercrime like phishing, malware, or data and identity theft. Cybersecurity embodies a set of systems, processes, and actions and its core function is to protect businesses from digital attacks. We all use smartphones, laptops, tablets and computers, and we access multiple services online at home and at work and we need to protect them from theft or damage. To reduce these cyber threats, learn more about how to protect your organization’s data, assets, networks, programs and your reputation from digital attacks. Introducing cybersecurity can protect your data and systems. Why does cyber security matter for my business? We all live in an increasingly interconnected world, and this has had many positive effects enabling businesses to collect and share more information, reach new customers and innovate. It has also though, led to a rise of criminal activities that profit from stealing customer data and spying on business practices. Small businesses can often be victims of cyber-attacks, putting their assets, data, information, and technology equipment at risk. Investing in sound cybersecurity systems can prevent you from suffering financial losses and corporate reputation damage. How cyber threats could affect business? Some examples of cyber threats that may affect your business. Phishing: This is a social engineering tactic that lures individuals into providing sensitive data by offering fake rewards. Through this tactic, criminals often target personally identifiable information, banking and credit card details, and passwords. Malware: This consists of malicious software that comes from website downloads, spam emails, and connection to other machines or devices. Hackers use malware to gain access to networks and steal or destroy data on computers. Ransomware: This is a form of malware that encrypts business files, making them no longer accessible. Criminals use it to demand a ransom in exchange for unlocking the data targeted. Weak passwords: Passwords are weak when humans or machines can easily identify them. Criminals that correctly identify passwords have easy access to business accounts that store confidential and sensitive data. Insider threats: These threats are performed by current or former employees, business contractors or other associates who seek to access critical business data for illicit purposes. How can I protect my business against cyber risks? Protecting your business from cyber risks can enable you to counteract criminal activity and keep pace with emerging trends in data privacy. You can start planning cybersecurity strategies by identifying systems, data, and users that are essential for your business operations. This mapping exercise will highlight vulnerability points that can be the subject of your cybersecurity goals and strategies, as well as help you to develop a cybersecurity plan at your business. Links to Supporting Information Cyber Research Institute Roadmap A guide to being cyber ready. Cyber Research Institute Cyber Readiness Program – Cybersecurity Awareness Workforce Training This program guides SMEs (Small and Medium Enterprises) to become cyber against cyber threats. GCA (Global Cyber Alliance) Cybersecurity Training Small Business and Know What You Have – GCA Cybersecurity Toolkit | Tools and Resources to Improve Your Cyber Defenses The Global Cyber Alliance (GCA) offers a cybersecurity toolkit designed for small businesses and online training courses. US Small Business Administration Strengthen your cybersecurity The United Kingdom’s National Cyber Security Centre and Small & medium sized organisations – NCSC.GOV.UK provides training and certification. Government of Canada Cyber Secure Canada offers an SME-targeted certification scheme.
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Digital Tools and Approaches
How can technology help my business trade? Businesses that adopt new technologies are better positioned to seize opportunities in global marketplaces.
