E-commerce business is the new and improved way to buy items from all over the world. Running an online store is one of the smartest and most profitable decisions that an entrepreneur can make. However, no one should enter into the global market without learning about its top traders along with the risks and benefits to your online business.
China is one of the biggest importers and exporters in the world. With a population of nearly two billion, their imports and exports exceed trillions of dollars. Much of their international business takes place in Hong Kong. China e-commerce businesses are major contributors to the world’s economic growth. Many people are buying products that are shipped directly from China or from companies that buy from Chinese exporters. As a new world power, it’s very important to learn more about China’s economy and trade industries.
Mexico and Canada
Mexico has a trillion-dollar economy that is one of the largest in North, Central and South America. It has the 15th largest economy in the world, making it an ideal partner for international trade and e-commerce business.
Canada has a good, stable economy and a highly developed global market. Its GDP ranks among the top 20 in the world, making it a wealthy country with many potential customers for your business.
European countries have always been ideal places to promote global trade. Some countries like Germany and the UK are more powerful traders than others. Europe exports products to more than a hundred countries around the world. The Internet has made it easier for online businesses and customers to buy and sell products there.
The Middle East
India, with a population over one billion, is the biggest global market in the Middle East. Many Indian consumers belong to wealthy, affluent classes who are demanding high-quality imports from China, the U.S. and other trading countries. In return, they are exporting rare, exotic items that can only be found in the Middle East.
Factors to Consider When Trading With Any Country
When evaluating any country’s position in the global market, there are several factors to consider. Think about the size of the country’s economy compared to other countries in the world. The best indicator is the gross domestic product (GDP) per capita that is based on nominal or purchasing power parity (PPP) GDP. PPP rates are commonly used to compare varying GDP rates in different countries.
Evaluate the diversity within the country’s market. The U.S. provides the most diverse selection of products that can be bought and sold in small businesses, franchises or e-commerce stores. A country that manufactures or exports only a few items will not be easy to trade with.
Once you enter the global market, always review the constantly changing trends in international trade. All of these changes have effects on your own business regardless of its size and industry. Think of laws that ease restrictions on certain industries like food safety or manufacturing. Consider the rates of economic growth in certain countries like China or Germany. Stay up to date on the news, and learn how the global market affects your e-commerce business.