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2016 Florida Export Guide
Florida.Think.Global
W
hile international opportuni-
ties abound, capturing growth in
today’s new era of globalization
is becoming increasingly difficult.
At the same time, for U.S. companies to succeed,
it’s becoming inevitable they need some foreign
market involvement, whether it’s selling product or
establishing operations overseas.
According to a recent Bank of America Merrill
Lynch (BofAML) survey, 61 percent of CFOs
plan to do business internationally and are increas-
ingly playing a key role in their companies’ global
reach. But factors like political uncertainty, foreign
exchange risk, and constantly changing regulations
have made the endeavor much more complex.
Here, BofAML executives reveal best practices
for navigating these issues in an uncertain world
and offer new market strategies for growth.
NewTools for Growing Beyond
Taking your business international can be an
important strategy to expand your client base and sustain
growth during tough economic times domestically. Data from
the U.S. Chamber of Commerce shows that 80 percent of
global purchasing power, 92 percent of the world’s economic
growth, and 95 percent of the world’s consumers live outside
of the United States.
In Miami and other port cities, investments are being made
in airports, seaports, rail and roadways as companies seek to
move goods and services efficiently in and out of the U.S. to
compete against global operators. In this area in particular,
U.S. companies are putting new trade strategies in motion
due to the planned expansion of the Panama Canal, a devel-
opment that will affect nearly every sector of the American
economy and allow U.S. businesses to shorten their supply
chains and connect more quickly with buyers and suppliers in
international markets.
The World Markets Entry guide, a tool from BofAML,
identifies 33 countries that are important to business leaders
looking to expand globally. It also notes their complexity of
entry, based on factors that include political and economic
stability, governmental default, currency regulations, and
potential for growth.
Latin America, for example, benefits from attractive demo-
graphics, an increasing middle class, and a growing infra-
structure, which appeal to industries such as manufacturing.
But the countries can be extremely diverse, and CFOs must
maintain a consistent, yet flexible, framework for managing
their treasury accounts in the region.
When possible, CFOs should encourage electronic payments,
since checks and cash can be inefficient and more susceptible to
fraud when working in diverse regions. BofAML helps com-
panies monitor and manage cash and information flows abroad
with its CashPro® Online treasury management system.
Making Contacts on the Ground
Having strategic discussions about what the company will
experience abroad and connecting with operators on the
ground can reduce the complexity of doing business interna-
tionally and help CFOs stay aware of changing rules and regu-
lations in new markets.Make sure to consult with banks and
advisors already working in the countries you are targeting.This
“global buddy system” can steer you toward the safest and most
prudent ways of getting access to supplies and vendors, which
can mean lower costs of goods sold and better pricing.
One of the easiest ways for a company to enter a foreign
market is to arrange for a trading partner, supplier relation-
ship, or a distributor relationship. CFOs also can consider
participating in a joint venture, merger and acquisition
strategies, or growing organically into a new market. Use the
vast array of industry trade shows in the U.S. to connect with
potential global partners.
Smart Strategies for Overseas Growth:
Entering New Markets in a Complex Era