by: Grow VC Group
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As one explores international trade data, a stunning fact emerges: only 1 percent of America’s 30 million companies export. The remaining 99 percent sell only in the U.S domestic market. The explanation simple: especially small and mid-size U.S. companies have been lulled by the vast domestic market: why go through the pain of reaching foreign customers if your Ohio company already sits in a market with a quarter of the world’s spending power and can “export” to New York, Illinois, and Texas? 

Yet the United States is not an exception: only a minority of companies in any one country export – only 6 percent of Mexican companies, 10 percent of French companies, and 25 percent of Swedish companies. This is because exporting is expensive. Researching markets, finding foreign customers and partners, localizing products and services to meet foreign tastes and standards, marketing and sales, international distribution and shipping, and managing regulatory paperwork all entail costs and test a small business CEO’s mental bandwidth. Exporting has traditionally been only for exceptional businesses able to shoulder its costs and stomach the risks. Ecommerce is turning these facts on their head. In the United States and elsewhere, 97 percent of companies selling online on eBay and other platforms export.

Getting online now is a great globalization strategy for any aspiring or current exporters. We here at TradeUp are highly supportive of companies that set up their own e-stores and place products on ecommerce platforms from Amazon to Alibaba. We also believe that policymakers need to raise their game and remove obstacles to e-exporters, especially prevalent the developing world, such as curbs on Internet freedoms, high fees and tariffs on cross-border online sales, and complex customs regulations that complicate shipments of small parcels, the hallmark of the online economy.

Read the whole article on TradeUp Blog.

Global Competitiveness Index (source: Wikipedia).

Global Competitiveness Index (source: Wikipedia).

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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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