International Trade: Pros, cons and transport methods

Importing , like anything else, has its good and bad sides. Although a country that participates in international trade through the importation of products, whatever it is, it contributes to enriching the standard of living of its country. Since the import allows consumers to have more diversity in terms of products. It also allows them to expand their cultural horizon. Since you have the option to consume products from other places. In addition, the import also carries with it an innovation factor. Since companies face greater competition. And this can also be beneficial for the country’s economy.

However, importation can also be a threat to local commerce, as well as jobs. If imported products become important, the market share of local products may decrease or even disappear. Also, if the competition is too strong, it can dominate the market.

Nevertheless, it is very attractive for an export company because it allows it to expand its market and expand its customer base. This way you can maximize sales . Although without a doubt, before venturing into international trade, the pros and cons must be evaluated.

Transporte marítimo. Comercio internacional

Maritime transport, the most advantageous means of transport in terms of price

The export also reduces the risk: do not put all your eggs in the same basket.
For a company, export has great advantages : for production, for commercial advantage and of course for profits. First, it is possible to increase the life of a product. If we sell a product that has become outdated or has gone out of style in our country, it is possible to bring it back to life in other countries where technology is less developed or where this product is a novelty.

On the other hand, the export also reduces the risk (do not put all your eggs in the same basket) since from one country to another customs, tastes and values change. This makes our products have new opportunities to sell. In addition, an export company is placing itself in a situation in which foreign competition is more fierce and threatening, which forces it to always innovate to maintain its market share. Finally, when exporting, we end up with a broader customer base, so our turnover and profits increase.

However, international trade can sometimes involve certain risks. It may be that a company has problems with customs or has difficulties with the temperature if its products require cold, which delays its efforts. Sometimes, these attempts may run poorly. So when a company is established in a new market it can be a failure and a waste of money. It can also be difficult to adapt to a new culture or a new market. In addition, export requires the expense of large sums of money. Although without a doubt, it can also bring great benefits .

What mode of freight transport to choose for your logistics?
A critical element of logistics and the supply chain is transport. Since it allows us to send and receive products daily. That is why it is important to choose the best way to transport goods. This way you have to evaluate all the factors that could affect your delivery. We must find the transport that best suits the needs of our business, the most profitable and the one that does the job on time.

Road transport is the most used land transport mode in Spain and the rest of the world. It is also indispensable, because even if you choose another transport, such as air or sea transport, you will need a truck to deliver the goods at the port of departure and pick them up at the port of arrival to the destination address. The advantage of road transport is that deliveries are fast, it is ideal for short and long distances. It is also suitable for products that require a controlled transport temperature, such as medicines, for example. But like any means of transport, it has a disadvantage and no less important, in fact, transit time is subject to the flow of road traffic.

Road transport: deliveries are fast, it is ideal for short and long distances

Nothing can stop a truck, nothing except the vast ocean.
Ground transportation is expensive, but it has an undeniable advantage: its flexibility. No matter where you go … Nothing can stop a truck, nothing except the vast ocean. Impediment that leads us to talk about another widely used method of transport: maritime transport . Since this is also the preferred means of transport for importers due to its very low cost . Either through a complete container (FCL Full Container Load) or by renting part of a container (LCL Less than Full Container Load), it is the most advantageous means of transport in terms of price. Its great drawback is that it is much slower and is also subject to shipping dates for shipping and freight forwarders.

Spain’s position the export market and its new opportunities

Last year’s export figures for Spain reached a record 217,126 million euros. An increase of 8.9% compared to 2016. An increase that makes Spanish results better than those of the European Union (+ 7.4%) and the euro zone (+ 7.2%). Compared to its European neighbors, Spain is also in first position. Globally, Spain registers higher growth than the United States (+ 6.6%) and China (+ 6.7%).

Promoted and co-financed by the European Union, the Mediterranean railway corridor will link the main Spanish ports with the rest of Europe. Therefore, Spain is a first class center thanks to its central position. Between the East and the West, on the main shipping routes in the world. Gateway to the flow of goods from America and Asia to Europe, this country is also an outlet for European exports. Thus, the Mediterranean, of which Spain is one of the main accesses, becomes an emerging market for Quebec’s ports.

Knowing how to do Spanish in the railway sector is not without international importance. Since many countries have asked Spain to carry out their projects.

The US and China close their borders to foreign products.
However, the protectionism proposed by Donald Trump in the United States and the policies to strengthen the domestic market in China have become two difficult situations for Spanish exports. Since these countries, the most important in the world, are creating tariffs and closing their borders for foreign products. This is the reason why Spanish companies, as well as the rest of EU companies, whose businesses experience continuous and intense growth, are looking for new and emerging markets.

Many Spanish companies have set their sights on a growing market such as Africa. This is a market that begins to offer great opportunities for European companies. The growth sectors are numerous in an increasingly rich area. Now offers more guarantees to investors.

Spain and Morocco: A strategic winning association.
One of the most important focuses for Spanish companies in Africa is the Moroccan market. This is an association of years old that is now more alive than ever.

Morocco is the largest African market for Spain and is in ninth position in our world ranking. In 2018, Spanish companies exported products for more than 8,000 million euros. Outside the European Union it is the second most powerful market for Spain. It is just behind the United States, where in 2018 we export 12 billion euros.

Exportaciones españolas en 2018. Fuente: ICEX.ES

There are several factors for which it is very beneficial for our companies to export products to Morocco. There are few kilometers that separate us and there is also a great relationship between both governments. Plasmadas in bilateral agreements on economic issues.

As a result, Spanish exports to Morocco have grown steadily thanks to the competitiveness of Spanish industry and the strengthening of its image in international markets.

France becomes the main import zone in Spain

The strong growth of Spanish exports and imports in recent years has made Spain one of the most internationalized countries in the world.

France is the largest trading partner of Spain. The volume of trade between the two countries amounts to 66.7 billion euros (37.65 billion euros of Spanish exports and 29 billion euros of French exports) during the last year, according to data from the Ministry of Economy revealed this month. This represents almost 1.3 billion euros exchanged per week. In the last decade, trade has increased by 125%.

While imports from France increased by only 0.8%, those from Spain increased by 5.7%.

In recent years, Spain has based its commercial strategy on the export of its productions. First in Europe and then outside the community borders. According to data from the Ministry of Economy, the trend is encouraging, since in the first six months of the year Spanish exports have increased by 4.9% compared to the same period last year. With 15.70% of all goods and services sold abroad, France is now the country where Spain exports most. It has dethroned Germany (10.4%) and Portugal (7.5%)

While imports from France increased by only 0.8%, those from Spain increased by 5.7%. The Spanish market share in France, therefore, goes from 5.9% to 6.2%. So Spain maintains its rank of sixth largest supplier in France. Behind are Germany, China, Belgium, Italy and the United States.

To illustrate the stage of development reached by the Spanish economy: Since 1997, the flow of Spanish investments abroad has exceeded the flow of foreign investment in Spain.

In general, the Spanish products and services most exported to France are those derived from intermediate goods and consumer goods. The economic recovery has seen a 6.2% increase in exports to the European Union, according to official Spanish data.

France is becoming the third largest investor in the country.

If the Spanish figures are confirmed, the trade balance could again be in surplus for Spain. Last year, this same balance began to lean in favor, after the years in red. French exports of goods to Spain amount to 29 billion euros, returning to their level after a sharp fall in 2009/2010.

France remains a privileged partner of Spain in terms of foreign direct investment (FDI) and is becoming the third largest investor in the country (behind the United Kingdom and the US), with nearly 4,000 established companies, which they represent 10.4% of the stock of FDI. There are also nine French organizations among the 100 most important companies in Spain by turnover.

According to the report on investment in the world 2018, Spain is the sixth recipient of foreign direct investment (FDI) flows in Europe and 17th in the world. Spanish FDI has recovered in recent years thanks to increased competitiveness and investor confidence in the country. In 2017, FDI inflows amounted to US $ 19 billion, a decrease of less than 3 percent over the previous year (less than the global trend, which had decreased by 23 percent). FDI stocks increased by 16% between 2016 and 2017 to reach 644.4 billion dollars (around 52.3% of GDP)