Import/Export: Times Are Changing For Business

The world has been going through a lot of big change, recently. As new leaders are coming into power throughout the biggest countries in the world, priorities are shifting, and the mood has changed. With the UK leaving the EU, The White House being in the hands of Donald Trump, and China struggling to maintain growth, the world seems to be in disarray. Trade is one of the first areas which will be impacted by all of this chaos. Of course, there is still a bit of time. But, very soon, world trade could be looking incredibly different. A lot of small businesses rely on importation to be able to get the goods they sell, making this a challenge for a lot of people. To help you with this, this post will be going through a guide to help you.

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New Trade Routes And What They Mean

Currently, it looks like the UK will be excluded from the Single Market once they leave the European Union. There could be some other ways to strike an agreement which is fair to both groups. But, for now, at least, nothing solid exists. Along with this, US president Donald Trump has shown a willingness to create a new trade agreement between the UK and the US, sending goods from each country both ways. This is all while China is trying to create a modern day Silk Road, from the middle of Europe to the heart of China. A route like this could create loads of chances for people to trade. Though, it might be several years away.

The impact that these changes have will be felt most of all by the businesses in the various countries. For the UK, it could become much harder for businesses to get their hands on a wide variety of goods. Some companies, which trade throughout Europe and the UK, will have to restructure their companies to suit new laws. For the US, it could become a lot easier for businesses to move goods to the UK. And, of course, with China’s new trading routes, the world could feel a lot smaller very soon. It will be hard to say how much harder these changes could make world trade. In fact, they will probably make things easier for some people.

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How To Import Now

If you’re already running a business, you probably understand the importation process. Most of this work is handled online, where you will browse websites like AliExpress and other wholesale retailers. Sites like this offer their goods in huge bulk, directly from the factories they were made in. For some goods, you may have to go directly to the manufacturer. And, with very unique products, you may even be paying for them to be made. Regardless, once they make it to your home country, you pay special customers fees on them. This is where the biggest impact will be felt. Being out of the Single Market doesn’t mean that the UK wouldn’t be able to trade with Europe. Instead, they would simply be subject to much greater taxation on goods. Of course, deals with other countries may be able to change this, though.

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How It Could Change

In this big mix of trade, the UK stands to change the most. If deals fail and bad trade agreements are made, money may have to be found from elsewhere to make up for higher taxes and stricter exportation rules. One of the most likely scenarios that could play out is the UK becoming a tax haven. The country’s laws and rules would change to favour banking institutions over other types of business. People from around the world could store money in the UK, without having to lose it to taxes. This sort of route can be great for the government of a country, enabling them to make a lot of money from the financial sector. But, it could have a huge negative impact on the population. Jobs that don’t relate to finance would slowly disappear, leaving not much else for those who don’t want to work with money. The government would have to tighten up and become a lot stricter, to maintain control.

Of course, this sort of future is very unlikely, at the moment. Most countries still see the value in working together, at least with trade. This makes it hard for good deals to be swept under the rug, as they benefit everyone. It’s much more likely that the UK’s trade will be spread much more evenly between China, the EU, and the USA. There’s still a lot of time between now and the negotiations ending, though. So, a lot could change.

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Securing Your Future

As a small business, the best thing you can do during times like this is secure your own future. Whatever the change might be, it’s going to happen. A lot of people will be impacted, and your business is likely to be part of it. One of the best ways to secure your business during times like these is by making the right friends. There are loads of companies out there which specialise in moving goods around the world. An option like JS Forwarding can cover a lot of different countries, including China and the US, without leaving the work for you to do. Even when it comes to importing the goods, you can have all of the work handled for you. Using another company like this will make it much easier to ensure your goods make it to you.

Along with choosing the right help, you should also consider the products you sell. If it’s likely that trade could become much more expensive than it used to be, it’s worth making sure that your products can be sourced from elsewhere. It will be very hard to reinvent your company because you can’t sell your old products anymore. So, instead, you should prepare for the worst and either stock up or find a new supplier.

Hopefully, this post will help you to understand the big changes which could be hitting the business scene over the next few years. Trade is very important to the world’s economy. Countries need to be able to trade with each other if they’re going to make enough money. So, it’s very unlikely that all chances will disappear. It might just become a little bit harder.

The Chinese Currency Debate – What is behind the concerns

Politicians and economists have long worried about the global trade implications of China’s practices to control the value of their currency. This PBS Newshour video, hosted by Business and Economics Correspondent Paul Solman, explains why Chinese currency controls are of concern to the Unites States, Europe, and South American countries.

Click here to access a full transcript and mp3 audio file of this video.