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2016 Florida Export Guide



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