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A Guide to Preparing an International Business Plan

By: FITT Team

An international business plan acts as a framework that identifies goals and objectives, specific target markets and clients, resources required and strategies to be developed in pursuit of international business opportunities. The plan allows for the monitoring of progress via metrics against which success and failure can be measured. A comprehensive international business plan will be comprised of a number of integrated strategies related to business functions, including communications, sales and marketing, finance and production.

What Is an International Business Plan?

An international business plan is a valuable management tool that describes who a business is, what it plans to achieve and how it plans to overcome risks and provide anticipated returns. It can be used for a wide variety of purposes, such as to:

• Set goals and objectives for the organization’s performance.
• Provide a basis for evaluating and controlling the organization’s performance.
• Communicate an organization’s message to managers and staff, outside directors, suppliers, lenders and potential investors.
• Help the planner identify the cash needs of the business.
• Provide benchmarks against which to compare the progress and performance of the business over time.

A comprehensive and detailed plan forces the planner to look at an organization’s operations and re-evaluate the assumptions on which the business was founded. In doing so, strengths and weaknesses can be identified.

Although highly dependent on the individual business case, on average it takes a three-year commitment to establish a successful presence in a foreign market. This process may require tremendous human, technical and financial resources during the developmental period.

The Planning Process

An international business plan is subject to repeated adjustment and revision to keep it current with the changing circumstances of the organization. The plan is a feedback mechanism through which new information is continually incorporated into the organization’s operations. Planning always precedes action. Therefore, planning must be thought of as a continuous cycle. The analytical tools presented here are not intended to be used just once. If they are to be useful, they should be used repeatedly as part of a process of improvement and incremental adjustment.

Plan Preparation Guidelines

These 7 guidelines will help in preparing a comprehensive international business plan:

• Clearly define the objectives for producing the plan : Who is going to read the plan, and what will they need to do? These objectives can help you decide how much emphasis to put on various sections.
• Allocate sufficient time and resources to thoroughly research the plan : A plan is only as good as the research that went into producing it.
• Show drafts of the plan to others : It can be very useful to obtain feedback from others, both inside and outside the business.
• Create an original plan that is done specifically for each business case : A common mistake entrepreneurs make is to borrow heavily from a sample plan and simply change the names and some of the numbers. There are two big problems with this approach. First , the emphasis placed on various sections of the plan must reflect what is important to the particular business in question. Second , a good plan should flow like a story, with the sections working together to demonstrate why the business will succeed. Plans that borrow too heavily from other plans tend to be disjointed, with some sections contradicting others and various key issues left unaddressed.
• Outline the key points in each section before the writing starts : These points must then be reviewed to ensure the sections are consistent with each other, there is little duplication and all key issues have been addressed.
• Ensure financial projections are believable : For many readers, the financial section is the most important part of the plan because it identifies the financing needs and shows the profit potential of the business. In addition, a good financial plan will give the reader confidence that the author really understands the business.
• Consider writing the executive summary as the last step in the process: It is usually easier to provide a concise overview after the detailed content has been created.

If you’re having trouble getting started with your business plan, try writing like it’s a series of tweets—one for every section of your business plan. To get your point across, 140 characters is all you need.

Forcing yourself to boil each section of your business plan down to one main point is an exercise in decision making and strategy all in itself. When you’re done, you’ll have everything you need to take your next step, whether that’s practicing your pitch to potential investors or a business partner, or sitting down to expand each tweet into a full section of a more traditional business plan.

Core Content

The international business plan is the culmination of all of the work done to determine the appropriate venture for the organization’s growth. As part of the feasibility process, the organization will have determined its own internal readiness, conducted comprehensive target market research and carefully analyzed any relevant risks.

At this point, the organization can take all of this information and analysis and formally document the plan for moving forward. There are many different models and examples of how to put together a formal business plan, rather than one correct way.

The right format will depend on the organization, the venture being pursued and who will be accessing the business plan and for what purpose. However, there are some basic guidelines to follow.

One of the reasons business plans are developed is to convince investors and/or bankers to invest in the venture.

Increasingly, they are looking for a business plan to include two sections: one relating to online strategy (in terms of e-marketing, social media and ROI) and the second relating to corporate social responsibility (including quality, health, safety and environment policies).

The inclusion of these topics gives more credibility to the company by demonstrating its commitment to the community and to employees’ well-being.

Telling a Story 

One trend in business planning is to use a narrative structure in the document, rather than traditional technical writing techniques. Storytelling techniques are increasingly being used throughout the business world to create personal and organizational brands, deliver marketing messages and develop persuasive plans.

Stories make presentations better. Stories make ideas stick. Stories help us persuade. Savvy leaders tell stories to inspire us, motivate us. That’s why so many politicians tell stories in their speeches. They realize that “what you say” is often moot compared to “how you say it.

Instead of using bulleted points and cold, technical language, organizations employ a “beginning, middle and end” narrative style. This engages the audience by establishing the context, describing the conflict or obstacles and arriving at a successful resolution.

The Executive Summary

Usually the last step of preparing the international business plan is to develop the executive summary, a short overview of what the plan proposes to accomplish. For some purposes, a one-page business plan can also be useful.

There is not a great deal of difference between an executive summary and a one-page business plan. The most significant distinction is the one-page plan must completely fit on one page in a readable font, while an executive summary may spread over two or three pages.

One-Page Business Plan

There is a trend towards the one-page business plan, especially if the plan is to be presented to potential partners for their consideration. Audiences for the one-page plan will be looking for a “quick hit”: a clear and concise description of what the opportunity is and how it is being pursued.

For example, a one-page business plan might include the following topics, as described in Noah Parson’s article “How to Write a One-Page Business Plan” on the website Bplans :

• Customer problem/opportunity
• Your solution/approach
• Business model (how you make money)
• Target market (who is the customer and how many are there)
• Competitive advantage
• Management team
• Financial summary
• Funding required

The one-page plan (or the executive summary, if used in place of the one-page plan) may provide the first impression the audience has of the business. This is the most important document generated out of the business planning process, and significant effort and care should be taken in its creation.

There are many websites the provide blank samples of one-page business plans, including Bplans , the GoForth Institute and Startup.com.

A Note on Strategic Plans

A strategic plan covers many of the same points as a business plan. However, a strategic plan sets out the detailed action plan to be followed to achieve the objectives of the international business plan.

It must outline specific activities, their due dates and who is responsible for each activity. It is a project plan with a critical path. A strategic plan ensures any venture is carried out in a coordinated, informed and systematic way.

A key consideration in action planning is how quickly to enter the market, which is driven by the chosen market entry strategy. If market entry is done too quickly, the potential for costly mistakes increases. However, if it is completed too slowly, opportunities may be missed and competitors will have more time to react.

The Planning Cycle

Attaching the word “cycle” to planning implies that it happens more than once. International business plans need to be reviewed periodically because new information that has an impact on both planning and operations is continually coming in.

All plans, including international business plans and strategic plans, need to be reviewed every time there is a major event impacting the business, such as civil unrest, a currency fluctuation or the presence of a new competitor.

About the author

Author: FITT Team

The Forum for International Trade Training (FITT) is the standards, certification and training body dedicated to providing international business training, resources and professional certification to individuals and businesses. Created by business for business, FITT’s international business training solutions are the standard of excellence for global trade professionals around the world. View all posts by FITT Team

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From business planning and negotiating sales contracts, to export financing options and shipping documents, these progressive steps ensure you have the knowledge and skillsets to be a successful exporter. 

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Developing an Export Plan

The purpose of an export plan is to assemble facts, constraints, and goals, and to create an action statement that takes these elements into account. The plan includes specific objectives, sets forth time schedules for implementation, and marks milestones so that the degree of success can be measured and can motivate personnel.  

Export Plan Tips

• The first time an exporting business plan is developed, it should be kept simple. It need be only a few pages long because important market data and planning elements may not yet be available. The initial planning effort itself gradually generates more information and insight. As you learn more about exporting and your company’s competitive position, the export plan will become more detailed and complete.
• Your plan should be written and viewed as a flexible management tool, not as a static document. Plan objectives should be compared with actual results to measure the success of different strategies. Don’t hesitate to modify and make the plan more specific as additional information and experience are gained. 
• A detailed plan is recommended for companies that intend to export directly, meaning selling to an end-user in another country. If your company chooses indirect export methods or sells via your or a third party’s website, you may use much simpler plans.                                                                                                

The Value of an Export Plan

• Written plans give a clear understanding of specific steps that need to be taken and help assure a commitment to exporting over the longer term.
• Only about a third of small -and medium-sized U.S. manufacturers have a written plan. Absent a plan, your business may overlook much better opportunities. In addition, reactive exporters may quickly give up on selling to international customers, concluding prematurely that it’s not worth the effort, or that it’s easier to serve customers closer to home even if that base may not grow, and could even shrink in the future. 
• Remember that while 59 percent of all U.S. exporters export to only a single market (predominantly Canada), many small exporters sell to more countries than they have employees, and these sales account for a growing percentage of total sales. These mini-multinationals are becoming more common, and your company can be one of them.

Length of the Export Plan

Product or service.

• What need does my product or service fill in the global marketplace?
• What modifications, if any, must be made to adapt my product for export markets?
• Do I need special licenses or certificates from the U.S. or the buyer’s government?
• Do I need to modify packaging or labeling?

Pricing Considerations

• What is the cost to get my product to market (freight, duties, taxes and other costs)?
• Given an estimate of the shipping costs, what is my pricing strategy?
• What, if anything, do I need to protect my intellectual property?
• What modifications, if any, should I make to my website for marketing purposes?        
• Should I sell on third party eCommerce platforms?
• What kinds of social media should I use to build awareness?
• Should I attend a trade show where international buyers are present?

Management Issues

• Are the reasons for pursuing export markets solid objectives (such as increasing sales volume or developing a broader customer base), or more frivolous (for example, the owner wants an excuse to travel)?
• How committed is top management to exporting? Is exporting viewed as a quick fix for slumping domestic sales? Will export customers be neglected if domestic sales pick up?
• What are the expectations? How quickly does management expect export operations to become self-sustaining? What level of return on investment is expected?
• With which countries has business already been conducted, or inquiries already received?
• Which product lines are talked about the most?
• Are domestic customers buying the product for sale or shipment overseas? If so, where?
• Is the trend of sales and inquiries up or down?
• Who are the main domestic and foreign competitors?
• What are some lessons learned from past export experiences?

Management and Personnel

• What in-house international expertise does the company have (international sales experience, language capabilities, etc.)?
• Who will be responsible for the export department’s organization and staff?
• How much senior management time should/could be allocated?
• What organizational structure is required to ensure export sales are adequately serviced?
• Who will follow through after the planning has been done?  

Production Capacity

• How is the present capacity being used?
• Will filling export orders hurt domestic sales?
• What about the cost of additional production?
• Are there fluctuations in the annual workload? When? Why?
• What minimum-order quantity is required?
• What is required to design and package products specifically for export?

Financial Capacity

• What amount of capital can be committed to export production and marketing?
• What level of operating costs can be supported by the export department?
• How are initial expenses of export efforts to be allocated?
• What other new development plans might compete with export plans?
• By what date must an export effort pay for itself?
• Do you qualify for any type of export financing?

Sample Outline of an Export Plan

Part i: export policy commitment statement   , part ii: situation or background analysis.

• Product/Service for Export
• Export License (if needed)
• Personal Export Organization
• Products/Services to be Exported
• Products that Qualify Under FTAs
• Resources Outside the Company
• Industry Structure, Competition, Demand Operations
• Export Control Compliance
• Product Classifications
• Resources Inside the Company

​ ​ Part III: Marketing Component

• ​ Identifying, Evaluating, and Selecting Markets
• Product Selection and Pricing
• Distribution Methods                                           
• Internal Organization and Procedures
• Sales Goals (Profit and Loss Forecasts)              
• Terms and Conditions
• Pricing with Consideration of Duties, Taxes  
• Freight Costs, and Logistics Included 

Part IV: Tactics—Action Steps

• Primary Target Countries
• Indirect Marketing Efforts
• Quarterly Accomplishments
• Secondary Target Countries 

​ Part V: Export Budget

• Pro-forma Financial Statements    
• Marketing Materials
• Travel      
• Website Enhancements
• Trade Show Visits
• Other Costs

​ Part VI: Implementation Schedule

• Periodic Operational and Management Review (Measuring Results against the Plan)

Addenda: Background Data on Target

• Basic Market Statistics (Historical and Projected)
• Background Facts
• Competitive Environment
• If your business is just getting started, contact your nearest Small Business Development Center (SBDC ) or Score representative for help in developing an overall business plan.
• If you are an established firm with a record of domestic or overseas sales and are looking to export, your local U.S. Commercial Service office can assist.
• Country Commercial Guides provide the latest market intelligence on more than 140 countries from U.S. embassies worldwide.
• A Basic Guide to Exporting provides a roadmap for developing an export plan. See Chapter 2: Developing an Export Strategy.

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Craft Your International Business Plan: A How-To Guide

Are you ready to take your business across borders? International expansion is a great way for businesses to grow and succeed in new markets. But before you dive into an international market, there are specific steps you need to consider: crafting a strategic plan. Whether it’s determining the competitive landscape of a target country or understanding local customs and regulations, an effective international business plan can lay the foundation for long-term success while also providing guidance on how best to allocate resources and manage risks. But where should one begin? Let’s dive into it!

Analyze Potential Markets

In today’s global market, expanding your business into new markets can open up a world of opportunities for ecommerce revenue growth. To get ecommerce revenue from new markets , the first step is to analyze potential markets. This involves conducting market research to identify which countries or regions hold the greatest potential for your business. You can start by looking at demographic data, economic trends, and consumer behavior in different parts of the world.

Of course, you should also delve into the market-specific data. Analyzing the competitive landscape and potential barriers to entry is sure to determine which markets are most viable for your business. Additionally, understanding cultural differences and local customs can give you insight into how your product or service may be received in a new market. Businesses can now expand their reach and increase their revenue streams in ways they never thought possible.

Set Clear Goals and Objectives

Once you have identified potential markets, it’s time to set clear goals and objectives for your international expansion. These goals should align with your overall business strategy and take into account the resources needed to enter a new market successfully.

Do you want to increase brand awareness, generate more revenue, or establish partnerships in a particular region? Or maybe you want to expand into a new market to diversify your customer base and reduce risk. Whatever the reason may be, setting clear and measurable goals can guide your decision-making process and ensure that your international business plan is aligned with your long-term vision.

Develop A Robust Strategy

With potential markets and goals in mind, you need to develop a robust strategy for entering the international market. But how do you know which strategy will work best for your business?

Direct Exporting

Direct exporting involves selling your products or services directly into the international market. This approach can be a low-cost way to test the waters and gain valuable information about overseas markets without the commitment of setting up a physical presence. However, it does require careful planning and research. Consider your product’s suitability for the market, the logistics of shipping and delivery, legal and regulatory requirements, and how you’ll handle customer service.

Licensing and Franchising

If you prefer a more hands-off approach, licensing and franchising can be viable options. Licensing involves granting another company the rights to use your intellectual property, such as trademarks or patents, in exchange for royalties or fees. Franchising is similar but typically involves a more comprehensive arrangement where the franchisee follows your established business model and brand guidelines.

Joint Ventures and Strategic Alliances

Collaborating with a local business through joint ventures or strategic alliances can also be an effective way to enter a new market. This approach allows you to benefit from the other company’s expertise and established networks while sharing the risks and costs associated with entering a new market.

Mergers and Acquisitions

For businesses looking to make a big splash in the international market, mergers and acquisitions can provide a quick way to gain market share, access new technologies or products, and expand your customer base. These transactions require significant financial resources and due diligence to ensure compatibility and avoid potential risks.

Identify The Resources You Need

No matter which strategy you choose, entering the international market requires a significant investment of time, money, and resources. It’s essential to identify what you need to make your international expansion a success.

Consider the staffing and expertise needed to manage operations in a different country. Will you need to hire local employees? If so, do you understand labor laws and cultural norms for managing a workforce in that country? Will you need to partner with local vendors or suppliers? How will you handle language barriers and cultural differences? It’s also crucial to assess your financial resources and determine how much capital you’ll need for market research, legal expenses, marketing efforts, and other related costs. Secure funding or explore financing options early on to avoid delays in your expansion plans.

Consider Different Countries or Regions

As businesses expand globally, you must first understand the unique culture, customs, and laws of different countries or regions to effectively reach and connect with their target audience. For example, did you know that in Japan, it’s considered impolite to loudly slurp noodles? Or that in China, the color red symbolizes good luck and happiness? Or that in Germany, punctuality is highly valued?

When you consider the cultural nuances and preferences of your target market, you can tailor your marketing strategies, product offerings, and overall business approach to resonate with local consumers. This can go a long way in building trust and brand loyalty in the global marketplace.

Decide How You Will Marke Yourself Abroad

Now that you have a clear understanding of your target market and their cultural preferences, it’s time to decide how you will promote and market your business abroad. This can include tactics such as translating your website and marketing materials into the local language, partnering with local influencers or businesses, and utilizing social media platforms popular in that region.

Even consider any legal or regulatory requirements for advertising and marketing in the target market. In certain countries, there may be restrictions on certain types of advertising or requirements for labeling and packaging. Other countries may have specific rules for online advertising and data collection.

Venturing into the international arena can be a game-changer for your business, opening up new avenues of growth and diversification. The journey, however, is paved with its unique set of challenges and complexities.

A strategically crafted international business plan acts as the compass guiding you toward success. It entails rigorous market analysis, clear goal-setting, robust strategic development, resource identification, cultural understanding, and effective marketing. Such a plan ensures that your business meets the needs and expectations of your new customers, stands tall amidst global competition, and reaps the rewards of global expansion. Get ready to embrace an exciting journey filled with opportunities, learning, and growth. Now that you have a step-by-step guide in hand, the world is truly your oyster!

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4-Plan Development Develop an Export Plan

Developing an Export Plan ⦁ Conduct an "audit" of your company to determine how exporting will impact your operations. ⦁ Understand the key components of an effective, actionable export plan. ⦁ Have a clear idea of the information you need to collect and sources where you might find that information. ⦁ Begin developing your export plan. Tools & Resources Preliminary considerations: before writing your international sales plan, you should understand exactly what exporting will mean for your company. More specifically, you should consider the management issues for exporting, approaches to exporting, distribution channels and other important considerations that will impact your business. Just as no two companies are alike, there is no one-size-fits-all export plan. However, your export plan should be an extension of your overall business plan, if not infused completely into your business plan. Many of the same questions for your international sales strategies will apply to your domestic sales plan. Click here to see a Sample Export Plan

4-Plan Development

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International Business Plan Structure

Is your business missing the opportunities in the international markets? Are you struggling with where to start your international expansion and how to go about it?

International Business Plan outlines corporate goals and steps towards foreign markets entry. It is also called the  Export Business Plan . At Win Global, we apply a 3-step approach to your international expansion.

Step 1: Building a Solid Foundation for International Business Plan

During this phase we determine the readiness of your business to the international expansion and help you to build four pillars of the successful international expansion:

• Selection of the product, service or solution to expand internationally
• Defining global value proposition for the selected product, service or solution
• Profiling ideal buyers or distributors of the product, service or solution
• Target market selection

Step 2: Analytical Phase of International Business Plan

This is a very important stage of the preparatory period for entering the international markets. It summarizes all the information collected from foreign market research and risk assessment. Based on obtained information a company checks the feasibility of continuing international business planning and makes a first go-or-not-to-go decision.

Step 3: Planning Phase of International Business Plan

This is the final stage when we put together a foreign market entry plan for our clients and consider all steps that must be taken in order to succeed in international business. The typical content of International Business Plan is:

• Executive Summary of International Business Plan
• Corporate Global Vision and Goals
• Four Pillars of the International Business Expansion
• Foreign Market Research Summary
• Risk Assessment
• International Business Strategy At this stage, we identify the best strategy that will help our client to enter each particular foreign market of interest. The examples of international business strategies are exporting, licensing (franchising), joint venture, foreign direct investments, etc.
• International Business Action Plan Based on an International Marketing Plan and the project approach International Business Action Plan contains activities, milestones, estimations, resources, performance measurement and evaluation criteria.
• Cost and Benefit Estimate .

Contact us now to schedule a free and no-obligation discussion about your issues in international expansion and determine if we can help you. Fill out the contact form now .

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How to Start an Import/Export Business in 6 Steps

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For nearly as long as there’s been people, there’s been trade. Imports and exports are how the potato came to Ireland, and in a more modern sense, it's how we’re able to buy food, drinks, furniture, clothes, and nearly everything else, from all around the world today.

Imports are any good or service brought in from one country to another, while exports are goods and services produced in the home country for sale to other markets. Thus, whether you’re importing or exporting a product (or both) depends on your orientation to the transaction.

The modern system of international trade is a complex web of import/export businesses that handle the sale, distribution, and delivery of goods from one nation to another. If you're interested in starting a business in this industry, know that there is more than one type of import/export business. You could focus just on importing or just on exporting. You could be a manufacturer’s representative, specializing in a certain industry, or you could be an import/export merchant or agent, which is more of a freelance broker.

Starting an import/export business

If you’re interested in starting an import/export business, there are a ton of considerations you need to make — just as you would for any business. For an import/export business, specifically, it’s helpful to have a background in business, international relations, or global finance. This should give you an understanding of the myriad hoops one must jump through to sell or buy a product from an overseas supplier.

“The compliances make it so complex that even if you did know how to do it, you’re still going to have to keep in mind a lot of random considerations,” says Selena Cuffe, co-founder of Heritage Link Brands, a company that imports, exports, and produces wine, and other high-end products like tea and honey.

Cuffe worked for years in brand management for Procter & Gamble, among other trade-related positions, before starting her company in 2005. She was inspired after going to South Africa, where she attended the first Soweto Wine Festival.

Heritage Link Brands now operates within the wine industry in different ways: It imports wine from South Africa into the U.S. wine market, and it exports grapes from its own South African vineyard to the U.S. as well as the Philippines and Hong Kong. It also exports wine to airlines for use on international flights.

Keep reading for the steps you need to take to start an import/export business, as well as tips from Cuffe.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

1. Get your business basics in order

Anyone starting a business in the 21st century needs to cover certain bases, like creating a website as well as social media channels like Facebook, Twitter, and a host of others.

So here's your first step: Get the basics in order. This means registering your business with the state in which your headquarters will be located, registering a domain name, getting any business licenses you need to legally operate, and so on.

You'll need a business plan, too. Part of that business plan needs to cover how to handle the rules and regulations of the markets you want to work in. For example, to bring alcohol and tobacco products into the U.S., you need an Alcohol and Tobacco Trade and Tax Bureau permit, which is free but can take months to acquire. Similar research needs to be done when doing business with other countries, taking into account everything from various legal back label requirements in each nation to insurance.

Perhaps most importantly, you need access to capital. Startup costs can vary greatly depending on the type of imports/exports business you start.

“The first thing I recommend for anyone is to have your capital upfront,” says Cuffe. “That’s so you can protect your business from not only a legal standpoint but also the equity of the brand that you create and to make sure you invest in the quality of whatever you launch. Test a market, or test a city, then a state, then a region. Then I think that there are greater chances for success and sustainability long term.”

The ratio that Cuffe cited for success in the wine industry — "In order to make $1 million, you need to invest $7 million” — demonstrates the kind of capital needed to start a business comfortably (if one can ever be “comfortable” as an entrepreneur) and be prepared for whatever occurs, from issues with sourcing to changes in trade regulations.

2. Pick a product to import or export

The next step in starting an import/export business is to find a product or industry you are passionate about and that you think could sell in international markets.

For Cuffe, that product turned out to be wine. She felt a connection to the product not just from a quality and taste standpoint but from a social justice standpoint as well.

“When I first entered the industry in 2005, there was just one Black winemaker and five Black-owned brands," she says. "Today there are 17 Black winemakers and 31 Black-owned brands.”

Though the South African wine industry still deals with injustices like poor working conditions and unequal access to capital, Cuffe says things have improved since the previous decade thanks to the increased sales and notoriety of South African wines worldwide.

“The biggest thing that we’ve enabled is the financing of Black businesses. When we first got started, in order for even these brands to create their own wine, they had to source it from existing white wineries, because they didn’t own any land,” Cuffe says.

Once you find your product, you also need to identify the right market for it. After all, you need someone to sell it to. This is where your trend-spotting skills come into play. The best products for an import/export business are products that are just starting to become popular, or show some promise to being so in the future.

You can conduct research with resources like GlobalEDGE’s Market Potential Index or by checking with local government officials and websites, such as the Department of Commerce International Trade Administration’s Data and Analysis. You can also find reports on the state of the imports/exports industry with the Census Bureau Foreign Trade .

From there, it’s best to start “slow and steady.”

“Test your ideas,” says Cuffe. “Don’t assume that what you think will sell because you love it will catch fire in the market. What catches fire in the market is more than just the way it tastes — it’s who you know, and the packaging and serendipity of timing, and all of the indirect soft stuff that makes the difference.”

3. Source your suppliers

Once you have a product you’d like to trade internationally, you need to find a local manufacturer or other producer that makes your product and can lead to a strong partnership. A good relationship with a supplier is crucial to long-running success in an imports/exports business.

Generally, you can find suppliers through companies like Alibaba, Global Sources, and Thomas Register. You will need to convince the supplier of the benefits of entering the U.S. market (or another market you wish to sell to), and figure out the logistics of taking their product from their local warehouse or production facility to another one, potentially on the other side of the globe.

You might also be your own supplier — in some cases, as Cuffe occasionally is for herself.

“We own an interest in a vineyard in South Africa called Silkbush ," she says. "My orientation when I do business to them is, 80% of the grapes that we pick we send off to domestic wineries who use our grapes to produce their own proprietary high-end wine. The remaining 20% is used to create our proprietary label Silkbush, which we export to foreign markets.”

4. Price your product

You know what product you want to work with and you've identified your target market. Next up, figuring out how much to charge.

Typically, the business model on an imports/exports business includes two key understandings: the volume of units sold, and the commission made on that volume.

Be sure to price your product such that your markup on the product (what ends up being your commission) doesn't exceed what a customer is willing to pay. But you don't want to make it too low such that you aren't ever going to make a profit.

In the imports/exports industry, importers and exporters typically take 10% to 15% markup above what the manufacturer charges you when you buy the raw product.

5. Find your customers

Next up on how to start an imports/exports business? Finding customers to sell to.

Deciding on a market is not the same as finding your customers. You can’t just send your products to the Port of New York and start selling your wares on the docks to whoever walks by. You usually need to find distributors and clients who will take on your product and sell to others.

If you have a quality website that includes digital marketing campaigns, your customers may end up finding you. But to get started, Cuffe suggests doing things the old-fashioned way — by cold-calling. Check with any local contacts you have in the area, contact the area's Chamber of Commerce, trade consulates, embassies, and so on. These entities might be able to give you a local contact list that could be a vital help in starting a imports/exports business.

“I cold-called the local Cambridge, Massachusetts, Whole Foods store, and they gave me a chance. And now we do display programs and regional programs with Whole Foods,” says Cuffe. “A lot of what I did in the beginning and even today involves cold calls.”

6. Get the logistics down

Perhaps the most complex aspect of importing and exporting is the logistics of taking a product created somewhere and selling it somewhere else. How does the product make the trip from the vineyard of South Africa to the wine glasses of drinkers in California, for example?

“When you are operating within a supply chain where your customer is different than your client, which is different than your consumer, it requires an extraordinary amount of coordination,” says Cuffe. “I use a freight forwarder that on my behalf reaches out to shipping lines, like Maersk.”

Hiring a global freight forwarder is generally a good idea for all imports/exports businesses, as they'll serve as a transport agent for moving cargo — saving you a lot of time and worry about getting your products from the factory to a warehouse. Essentially, you'll give them information about your business and your intentions for the product, and they'll arrange the shipping agreements, insurance, and oftentimes the licenses, permits, tariffs, and quotas of working within another country. This can remove a lot of the headache associated with starting an imports/exports business in an international trade market.

Frequently asked questions

Is an import/export business profitable.

Many import/export businesses are very profitable. To improve your company's chances of profitability, it's important to conduct the required research on your industry and have a well-documented business plan. Understanding all of the costs associated with an imports/exports business and determining your profit margins when pricing your products is also essential.

How do import/export companies make money?

As an import/export company, you'll make a profit by selling products at a higher rate than you paid for them from the vendor or source.

What is an export license?

An export license is a government-issued document authorizing your company to complete certain export transactions. An export license is issued by the appropriate agency once the export transaction has been reviewed.

What documents do I need to import goods?

The types of documents you'll need to import goods will vary depending on the country you're importing the product into. In the United States, import licenses and permits may be required, but a Customs and Border Protection entry form is always required.

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The bottom line

The world of importing and exporting is a dazzling, complex system that balances both emotional and economic needs. If we want something that is grown or produced in another part of the world, how can we get our hands on it? How can we give others the opportunity to enjoy it, while still creating a sustainable lifestyle for those producing it and for those who transport it from point A to B?

If you’re interested in answering these questions, don’t let the enormity of the task overwhelm you. With the proper research, planning, and documentation, you can launch a successful imports/exports business of your own.

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7 steps to create your international business plan

Congratulations! You’ve made the decision to go global . Now how do you get started?

First, determine your company’s export readiness by taking this nine question quiz created by the U.S. Department of Commerce. The website calculates your readiness score and provides additional resource links to help overcome any corporate weaknesses.

Next, develop a plan. Stanley Pfrang, Market Development Director – India, the Middle East and Africa, WEDC , and Jen Pino-Gallagher, Bureau Director, International Market Development, DATCP , shared a seven step plan at a program I recently attended.

• Proactively develop a plan. Some companies reactively dive into the international market after receiving a product or service inquiry from overseas. A better strategy is to first think through planning steps two-seven to help avoid costly missteps.
• Conduct market research. Is there a need or demand for your product or service? Is market expansion feasible? Who are your competitors? What financial and legal paperwork is required? Do your current customers also operate in global markets? If so, what can you learn from them about opportunities and potential pitfalls?
• Entering new markets. Who can help you distribute your product? Do you need storage space? Will you need a manufacturing partner located in your target destination?
• Logistics. How important is your delivery speed? The decision will help you select transportation carriers and/or delivery routes.
• Payments. Determine what currency you will accept. Will you sell in U.S. dollars and/or foreign currency? Will you offer a discount if payment is received in U.S. dollars? Will you accept letters of credit? Will you require a down payment before production begins on goods or services?
• Visit the market before entering it. How do your competitors operate? How will your customers use your products or services as compared to those of your competitor? Trade shows are a good, inexpensive resource to help you see market potentials and downsides.
• Resources. Explore state and federal government online resources. Join an industry association knowledgeable about international trade. Talk to customers and maybe even competitors to learn from their mistakes and wise decisions.

After sharing the seven step plan, Pfrang, Pino-Gallagher and other program panelists offered additional tips.

Don’t be afraid to ask questions about companies interested in your product. How long have they been in business? Obtain customer and vendor references. A face-to-face meeting to establish a relationship before doing business is best and can be done using Skype or a similar internet connection if necessary.

When seeking a trade consultant, hire a native of the foreign market you wish to enter because she will better understand the market needs and difficulties. At a minimum, hire someone with English as his second language.

Never automatically dismiss a lead that comes your way. Always explore the possibilities. It may lead to big things.

Be ruthlessly conservative in planning when internally strategizing your approach to new markets and opportunities that arise. Remember to include the impact on staff resources, time zone differences and product distribution methods.

Read Kiss, Bow or Shake Hands , a book that provides insights into business culture and customs in many different international markets. Lastly, always remember the primary goal of marketing.

So now it’s your turn to share advice. What resources do you use? What wisdom have you developed through experience? I’d love to hear from you. You can leave your comments below or you can reach out to us on Twitter and Facebook .

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One Response to 7 steps to create your international business plan

I run a small time web business in the evening, and have been operating globally for over a decade. If you have any type of web presence for your product, you quickly find yourself doing global sales on a small scale in terms of units – i.e. single items – though not necessarily on a small scale in terms of income- about 30% of my sales are out of country -that is where my strongest customers are (and oddly in the countries with universal health care and some of the highest tax rates). Many local banks are not set up to handle those type of transactions economically so I use various on line payment systems. You lose 3-4% but it is a lot simpler than any other option. I learned this the hard way when my community bank took 4 months to finalize a simple overseas bank transfer from the Philippines. For screening customers I am basically linked to other people working in the same type of business. We share mainly which customers to avoid, scammers and the like. Likewise I have come to learn a lot about what countries to ship to an which to avoid as well as the various headaches of different import customs and other processes. It can be a tricky process but a lot of local small businesses are doing it . In terms of language barriers – if you are not dealing with English speaking customers there are various free translation services on line – In todays world though you need these markets – Wisconsin is the weakest state I have for sales and overseas is by far the most profitable.

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5 International Business Examples to Learn From

• 29 Jun 2021

Despite the rise in geopolitical conflicts and concerns around global health in the aftermath of the COVID-19 pandemic , international business continues to thrive. According to a Profile Tree report , about 70 percent of international trade involves global value chains—meaning different stages of production are located across different countries.

“There has never in the history of the world been a more exciting time to be conducting business across international borders,” says Harvard Business School Professor Forest Reinhardt in the course Global Business . “The opportunities are enormous—to make money, to learn more about the world, and to make the world a better place.”

If you’re interested in entering this exciting sector, here’s an overview of what international business is and what factors can help make your company successful.

Access your free e-book today.

What Is International Business?

The term international business refers to any business that operates across international borders. At its most basic, it includes the sale of goods and services between countries.

Yet, other forms of international business do exist. For example, a business that produces components or products overseas but sells them domestically can be considered an international business, as can an organization that outsources services, such as customer service, to locations where labor expenses are cheaper.

For most organizations, decisions around building, producing, and selling products or services are informed by many factors.

Cost is an important one because businesses that primarily operate in developed markets, like the United States and Europe, can often source cheaper labor abroad.

Other factors play a role in decision-making, too. For example, an organization that makes a conscious effort to become more sustainable may produce its product as close as possible to the end user to reduce greenhouse gas emissions related to transportation, even if it might result in higher labor costs. Likewise, a business may take pride in sourcing local labor to create jobs and support the economy.

What Makes a Successful International Business?

Although international business can benefit the global economy, it also carries inherent risks. The fact that each country has its own government, regulations, inflation rates, and currency can complicate business models and must be weighed against the perceived benefits of operating internationally.

Some of the most common challenges of international businesses include language and cultural barriers, currency exchange rates, and foreign politics and policies.

“Although international business is extremely exciting, it can also be risky,” Reinhardt says in Global Business. “And it pays us to understand how to manage these risks.”

To be successful, international businesses must be resilient, adaptable, communicative, and resourceful. They need to have a deep understanding of international economics to anticipate how global markets will affect their bottom line and international marketing to effectively communicate their organization’s value to diverse audiences.

Are you interested in working with an international organization? Do you have plans and aspirations to take your business international?

Here are five well-known international businesses that have successfully—and not so successfully—navigated the global market.

Examples of International Businesses

Apple Inc., founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in the 1970s, is now considered one of the most influential international companies. Headquartered in the United States, Apple designs, develops, and sells electronics, software, streaming, and online services worldwide.

Apple opened its first international location in Tokyo, Japan, in 2003 after saturating the American market. Under Jobs, Apple touted ease-of-use, innovative design, and customer loyalty with the marketing slogan, “ Think Different ,” and it continues to use visionary strategic marketing and a tight ecosystem to overcome competition and attract creative audiences around the globe.

Apple not only sells products internationally but has supply chains from 43 countries that ship supplies to China for final production and assembly. By keeping a tight-knit and strong relationship with suppliers, strategic inventory, and a focus on sustainability, Apple stands as one of the world’s most successful companies.

2. Financial Times

The Financial Times is a formerly British daily newspaper that’s now owned by the Japanese holding company Nikkei. The Financial Times’ mission is to deliver unbiased, informed investment and economic information to empower individuals and companies to make secure investment decisions.

The Financial Times had a rocky start trying to break into the international market. Andrew Gilchrist, former managing director of the Financial Times , describes his experience at the publication in the online course Global Business .

During his tenure, the Financial Times prioritized entering the international market in India. Despite a large English-speaking population and strong government support, domestic journalism was considered culturally and legally suspect. In fact, the Financial Times was eventually tied up in legal knots because the local newspaper barons were able to challenge every move through the courts.

Eventually, the Financial Times’ attempt to go international in India led to an economic slowdown and sluggish company growth.

3. McDonald’s

Two brothers, Maurice and Richard McDonald, converted their drive-through barbecue restaurant in San Bernardino, California, into a burger and milkshake restaurant—now known as McDonald’s—in 1948.

The McDonald brothers focused on creating a better business system geared toward self-service and efficient and repeatable processes that relied on heating lamps instead of waiters. This model, known as “ Speedee ,” led to lower costs, cheaper products, and faster growth. It became the epitome of “fast food.”

Soon after, Ray Croc took McDonald’s a step further by bringing in franchisees and suppliers, leading to the creation of restaurants across the United States. McDonald’s model continued to expand, and, in 1967, the company opened locations in Canada and Puerto Rico .

McDonald’s has been internationally successful, thanks in large part to the consistency its business model allows. The fact that a Big Mac tastes the same regardless of which country you order it in is a testament to the company’s long history. Today, there are 38,000 restaurants in more than 120 countries.

4. Coca-Cola

Coca-Cola was created by pharmacist John Pemberton in 1886 at a soda fountain in Atlanta, Georgia. It was used as a tonic for common ailments due, in part, to the addition of cocaine and caffeine derived from the kola nut, which was a major ingredient at the time. (This was later removed from the recipe in 1903.)

Although popular at its inception, Coca-Cola became the company it is today because of the marketing and business leadership of Asa Griggs Candler and future investors, who dramatically increased sales and expanded syrup factory production into Canada.

Eventually, an independent bottle company licensed the rights to Coca-Cola’s syrup production and distribution, streamlining production and generating massive profits. Coca-Cola later remarketed for Germany, China, and India, and it’s now sold everywhere except Cuba and North Korea .

Coca-Cola currently has over 900 bottling and manufacturing facilities worldwide , many of which are in North America, Asia, and Africa.

H-E-B is a popular American grocery company with more than 340 stores in Texas and northeast Mexico. It was founded by Florence Butt in 1905 and expanded into Mexico in 1997.

The primary driver of international expansion wasn’t a desire to capture greater market share, but rather, a desire to gain access to foreign produce markets in warmer climates, from which the company could source produce during its domestic suppliers’ off-season in the northeastern United States.

Craig Boyan, president of H-E-B, explains in Global Business that, upon becoming an international business, H-E-B bought blueberries from Chile and Peru to sell year-round. Despite it being expensive to ship blueberry crates to Texas, this enabled the company to continue meeting its customers’ needs. Since then, production has increased with demand, especially in Mexico, which has an ideal climate to produce blueberries year-round. H-E-B now sources blueberries mostly from Mexico, making them more available and affordable for customers.

Why Study International Business?

Many global businesses succeed by expanding their markets, production operations, and supply chains internationally. But doing so requires savvy business leadership bolstered by economic knowledge, an understanding of markets, and the ability to learn political and cultural trends.

Furthering your education in global business is an effective way to gain these skills.

Acquiring them, along with experience, can lead to a successful career in global business. Some of these important skills include:

• Strong communication skills
• Emotional intelligence
• Cultural awareness
• Knowledge of finance and accounting
• Entrepreneurship skills
• Understanding of global economics

Start Expanding Your Business Internationally

Regardless of the role, professionals must stay current on all business practices. A global business education provides a wide range of opportunities to create and capture value for organizations. To bring this value to the workplace, individuals need to understand the economic, political, and social factors that drive change and how decisions affect global markets .

Strategists and entrepreneurs should learn about the broader macroeconomic and political landscape of their organizations to grow their business internationally and manage global teams. Professionals in heavily regulated industries can also use this knowledge to develop approaches and frameworks to navigate their complex industries.

If you’re considering joining a global business or thinking about ways to expand your organization internationally, completing an online Global Business course is an excellent way to quickly gain those skills.

Are you interested in breaking into a global market? Sharpen your knowledge of the international business world with our four-week online course Global Business , and explore our other business in society courses. Not sure which is right for you? Download our free course flowchart .

This article was updated on April 23, 2024. It was originally published on June 29, 2021.

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How to draw up an international business plan

Nick Farmer – International Tax Specialist

Many businesses have heard about the benefits of trading internationally, but haven’t yet taken the plunge. Others may have started on this journey, but are still trying to figure out how to improve their international experience.

To make a success of international trade, it is important to approach it as a separate part of your business and draw up a specific international business plan.

So how do you put together a clear plan that will help you realise your international ambition?

The easiest way to start is to map out your plan into the following key segments: reasons, research, resources, relationships and review.

Steps to create a global business plan

Step 1 – reasons for going global.

To start with it is important to define your reasons for wanting to trade internationally. It could be the perfect next step, but just because someone says it would be a good idea doesn’t necessarily mean it is right for your business. So really challenge yourself to understand why you are taking your business down this path. Here are a few reasons that often arise:

• Spread the customer base;
• Reduce dependency on home economy;
• Next stage of business development;
• Helps the business innovate and remain competitive;
• Increases status of the business;
• Fulfils personal ambition

Taking time to deliberate on your reasons and being able to articulate them will give you a greater sense of purpose and help you galvanise the team around you.

How to go global in the tech sector

Step 2 – research the market.

Once you have determined that trading internationally is right for your business, then it’s time to start doing your research.

Firstly, there is now a considerable amount of data available from behind your desk. From spending time undertaking this research you are trying to find answers to questions such as:

• What markets are right for your products or services?
• What’s the competition like and are there gaps in the market?
• How easy is it to do business in the target market?
• What changes need to be made to the product; branding, colours, name etc?
• How do you comply with local regulations?
• What documentation and translations will be required?

At the same time as researching the market, you will need to think through what operating model is going to be suitable for your business in each of your target markets. Will you be looking to sell directly from the UK, or instead use in-country agents or distributors. Maybe your product can be licensed to a local business, or franchising arrangements will work for you. If you are prepared to make more of a commitment then it could be worthwhile looking for a local joint venture partner, or even set up your own operations in the local market.

Once you have exhausted the desk based research, it’s then important to carry out some in-country research to really get a feel for your audience and the opportunities that exist. It may be possible to join a trade delegation, and these can often be a good way to get introductions, but only if the visit is particularly relevant to your sector. Alternatively you might sign up for a trade show, or contact potential customers from online marketplaces, before you leave and put together an itinerary for your visit. Part of the reason for your visit will of course be to better understand the local customs and culture and to make sure you go into the market with your eyes open.

Step 3 – Resources

Whilst it is crucial to do your market research, it’s also vital that you clearly analyse the resources that are available to you to make sure you have the capacity to accommodate the desired international activity within your business. Carrying out a health check on the existing business will help you determine if you have the capability and resources to make international a successful part of your business. This will include:

Do you and your team have the time and capacity to devote to international trade or do you need to recruit appropriate expertise?

Management team

Who is going to be involved in managing the process and making sure control procedures are in place?

What employee involvement will be necessary, and will any movement of staff or local hires be required?

What funding is going to be required to support the initiative and what is the payback on this?

Language skills

What language skills will you need and are these available to you?

Is your website set up for international trade or does it need to be ‘internationalised’?

Step 4 – Relationships

There’s no doubt that trading internationally could be rewarding for your business, but to be successful it is certain that you are going to need to get some outside support. There’s a whole community of businesses set up to support international traders and understanding who is who, and getting the right people behind your business, is all part of the key to success. Collaboration partners would include:

Accountants

Providing commercial support and making sense of the numbers involved, as well as sourcing local advice from overseas network partners.

Tax advisers

Tax will play its part in any cross border transaction, so it will be important to understand the implications before it’s too late, such as VAT, Customs Duties and Withholding taxes.

Trading outside your home market will require specific insurance, and you may wish to have credit insurance to protect against non-payment.

Immigration

Where your activities involve the movement of people, there may be local visa requirements that need to be fulfilled.

There will be legal paperwork involved, such as contracts, commercial agreements and invoices, as well as the labelling and need to protect your intellectual property.

Logistics providers

To help you transport and distribute your product and ensure you have the right export documentation.

If additional finance is required you will need to explore the alternatives and find out what export finance is available to you.

Foreign Exchange

Trading internationally will usually involve foreign exchange exposure and the need for specialist FX support.

Drawing up an international business plan is only the start, and this will need to be kept constantly under review so that you are able to assess the benefits for your business. Key to this process will be the data that you collect, as this will enable you to determine the profit that you are actually making from your international activities. Making sure that your accounting system is correctly configured to provide you with this information, and that there is a regular review process (monthly, quarterly) including comparison between budget and actual, is part of the process of going international.

Dictionary of International Trade

International business plan.

Planning is essential for any business. Before venturing into international markets companies have to draft an International Business Plan as this document will help them set their goals, effectively allocate their resources and determine which countries offer the most potential for their products as well as how to reach the clients and how to make competitive offers. The purpose of the international business plan is to prepare companies, specially middle and small, to enter the international market place or to better organize their existing international business activity. The International business plan can be divided into six sections following a time sequence.  Each section helps to plan international business strategies and take effective export decisions:

• Section 1. Export diagnostics.
• Section 2. Market selection.
• Section 3: Market entry methods.
• Section 4: International offer .
• Section 5: International promotion strategy.
• Section 6: Economic plan.

The Plan will serve as step-by-step guide to lead the company through the process of exporting products and services to international markets. International Business Plan Template and Example.

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Trade Troubles: Learning About the Global Supply Chain and Why It’s Broken

In this lesson plan, students will explore how delays, product shortages and rising prices are linked to a crisis in international trade.

By Michael Gonchar

Lesson Overview

Featured Article: “‘ It’s Not Sustainable’: What America’s Port Crisis Looks Like Up Close ” Featured Podcast: “ The Great Supply Chain Disruption ” (32 minutes)

Throughout the pandemic, businesses of all sizes have faced delays, product shortages and rising costs linked to disruptions in the global supply chain . Consumers have been confronted with an experience rare in modern times: no stock available, and no idea when it will come in.

In this lesson, you will analyze the causes and effects of what the Times correspondent Peter Goodman calls the Great Supply Chain Disruption. Then, in the Going Further section, you will have the opportunity to learn more about Just in Time manufacturing, or delve deeper into understanding the fundamentals of trade and globalization.

Part 1: What countries make the products we buy?

Look at the labels on your clothing, sneakers, electronics or anything else you own. Choose five items and find out where they’re made. List the countries on the board, or share in small groups. What trends do you notice across the class or in your groups? What countries are making the things that you buy?

Part 2. What do you already know — or think you know — about problems with the global supply chain?

Have you experienced empty store shelves, out-of-stock products or delayed shipments during the pandemic? Do you know anyone whose work has been affected by supply-chain issues? Turn and talk to a partner if you are in a classroom setting and discuss the question above: What do you already know — or think you know — about problems with the global supply chain?

When you’re done, take a look at the brief explainer that @nytkids created on Instagram about how the supply chain works and where it is currently in crisis. How much of what you and your partner discussed is reflected here?

Main Activity

For this activity, you have a choice of reading the featured article , listening to the featured podcast (here’s the transcript ), or doing both. Before you start, look over the four prompts below so you are prepared to annotate or take notes. After you read or listen, answer the following questions.

1. The Problem: Both the article and the podcast refer to a problem facing the world today: the Great Supply Chain Disruption. In your own words, describe what that problem is. Then come up with your own term to name the problem, without using any one those four words “great,” “supply chain” or “disruption.”

2. The Causes: Throughout the article and the podcast, the reporter Peter Goodman explains many causes of the Great Supply Chain Disruption. What are they? Make as long a list as you can.

3. The Effects: The article and podcast both elaborate on the effects of the Great Supply Chain Disruption — from the port, to businesses, to the consumer. What are these many effects? Make as long a list as you can.

4. The Solutions: Neither the article nor the podcast spend much time on comprehensive solutions to the Great Supply Chain Disruption, but they do allude to some measures that might help. What are those measures? Which ones do you think might be most beneficial to alleviate the problem?

Going Further

Option 1. Evaluate the benefits and drawbacks of Just in Time manufacturing.

In the article “ How the World Ran Out of Everything ,” Peter S. Goodman and Niraj Chokshi explain the role that Just in Time manufacturing plays in the current supply-chain crisis.

After reading the article, explain in your own words what Just in Time manufacturing is.

Next, consider the benefits of Just in Time manufacturing for companies. Why has the approach been adopted by the automobile industry and beyond?

Then ask yourself, how did the strategy help to cause and exacerbate the current global supply-chain disruption?

Finally, based on what you learned about Just in Time manufacturing, what suggestions would you make to companies that are trying to adapt their practices for the future?

Option 2. Learn more about trade and globalization.

The Council on Foreign Relations has created a series of learning modules to help make complex international relations and foreign policy issues accessible to learners. Two of these modules are on trade and globalization .

For example, the trade module begins with a seven-minute video explaining what trade is and how it works in today’s global economy. The globalization module begins with a four-minute video about the benefits and challenges of our increasingly interconnected world.

Use these self-paced modules to learn more about the fundamentals of increasing trade and globalization in our modern world and take the multiple choice self-assessment at the end of each module to check for understanding. Then look through any day’s edition of The New York Times and find as many articles as you can that relate to the varied concepts covered in the modules, from trade deficits and foreign investment to international pharmaceutical manufacturing and human trafficking.

Want more Lessons of the Day? You can find them all here .

International Trade

"No generation has had the opportunity, as we now have, to build a global economy that leaves no-one behind. It is a wonderful opportunity, but also a profound responsibility." Bill Clinton, 42nd president of the United States

• February 16, 2024
• Business English
• One Comment

Home » International Trade

Latest lesson plans

This Business English ESL lesson plan on international trade has been designed for business professionals or other adults and young adults at an intermediate (B1/B2) to advanced (C1/C2) level and should last around 45 to 60 minutes for one student.

International trade is one of the principle driving forces of globalisation and the global economy. Our current economic thinking dictates that countries and their businesses should be free to trade in any other country in the world. However, this global trade massively favours multinational corporations from wealthier nations, often to the detriment of local populations. For this reason, most countries employ some kind of barrier to protect their own companies from what they see as unfair advantages from abroad. In this Business English lesson plan on international trade and the global economy, students will have the opportunity discuss and express their opinions on issues such as how the global economy works, the barriers to international trade, and why there is resistance to this.

For advice on how to use this English lesson plan and other lesson plans on this site, see the guide for ESL teachers .

PRE-CLASS ACTIVITIES

Reading activity Before the English class, send the following article to the students and ask them to read it while making a list of any new vocabulary or phrases they find (explain any the students don’t understand in the class):

Investopedia | What Is a Free Trade Area? Definition, Benefits, and Disadvantages

The article gives a definition of free trade areas, explains the advantages such as access to better quality products and encouraging innovation, as well as some disadvantages such as job losses and a reduction in working conditions. At the start of the class, hold a brief discussion about what the students thought about the article. What do they think about the issues raised in the article? Do they agree with what was written? Can they think of any ways they might disagree with the content of the article?

Video activity To save time in class, the English teacher can ask the students to watch the video below at home. In the class, the students will answer a number of conversation questions directly or indirectly related to the content of the video.

The video for this class is a TEDx Talk by Haley Edwards called “What global trade deals are really about” which explores the true motives behind why countries want to secure trade agreements around the world.

IN-CLASS ACTIVITIES

The focus in the class is on conversation in order to help improve students’ fluency and confidence when speaking in English as well as boosting their vocabulary.

This lesson opens with a short discussion about the article the students read before the class. Next, the students can give their opinion on the quote at the beginning of the lesson plan – what they think the quote means, if they agree with it and how it could relate to business. This is followed by an initial discussion on the topic including which countries the students’ countries conduct most trade with, their experience of international trade, and the future of international trade.

After this, students will learn some vocabulary connected with international trade and the global economy such as trade deficit , trade war and protectionism . The vocabulary is accompanied by a cloze activity and a speaking activity to test the students’ comprehension of these words.

If the students didn’t watch the video before the class, they can watch it after the vocabulary section and answer the conversation questions. Before the conversation, ask the students to give a brief summary of the video and what they thought about the content.

Finally, there is a more in-depth conversation about international trade and the global economy. In this speaking activity, students will talk about issues such as why trade liberalisation remains deeply unpopular, when governments should protect local products, and whether trade agreements favour richer countries.

After the class, students will write a letter to a logistics company requesting information about the services they offer. The writing activity is designed to allow students to practise business-style writing as well as improving their grammar with the feedback from their teacher.

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How Can a Global MBA Prepare You for a Changing World Economy?

Success in international business requires much more than mastery of finance, strategy, and a foreign language. Complex, nuanced factors roil today’s global business environment: geopolitical tensions, monetary policies, trade protectionism, technological advances, and climate change are just some of the factors that can dramatically impact financial markets, supply chains, and other critical factors that drive global commerce decisions.

The current environment demands leaders with a unique combination of specific skills, knowledge, and characteristics . They need cultural sensitivity and the ability to understand local markets, an understanding of international law, currency policy, and management principles. According to an American Management Association study, almost half of all organizations want to develop their leaders’ global capabilities. Still, less than 20 percent of multinational companies are confident that their leadership pipelines can meet future business challenges.  

A global MBA can help prepare you for a leadership position in a multinational corporation. A master’s degree focused on international leadership, such as Tufts University’s online Master of Global Business Administration (GBA) , can do the same while building skills required to lead in nonprofit and multilateral organizations, NGOs, the public sector and the military, and international relations organizations.

Merge Business and International Affairs in One Degree

Alums include ceos, heads of state, and ambassadors, a world of experience: what you gain in global mba and international business programs.

An online GBA master’s degree, like the one at the Fletcher School, covers the business fundamentals typically found in a global MBA program. It also provides in-depth international context and the analytical skills needed to understand them. Read on to learn more about the key benefits of attending a business administration program with an international focus. 

Broaden Your Understanding of Other Cultures & Markets 

Global business leaders must be able to work across multiple markets and communicate effectively with people from different cultures. The Tufts GBA curriculum includes several courses to develop students’ cultural understanding: International Supply Chains focuses on conflict resolution and managing business flow between countries, while Economic Policy Challenges in Emerging Markets explores how emerging market countries have addressed monetary policy, trade policy, capital flows, and industrialization dilemmas.

Tufts GBA students build their understanding of global cultures and markets through the program’s international immersions: four-to-five-day learning trips to vibrant and relevant locations in Asia, Europe, or Latin America. Students explore the business and geopolitical environments of the immersion area, combining academic course work with site visits to organizations in various sectors. 

Advance Your International Business Skills

As a global MBA or international business program student, you will develop practical business skills and learn to apply them in a global setting. All Tufts GBA students complete two core courses in business foundations : Corporate Finance in Global Capital Markets and International Strategy and Innovation. 

Students must take one additional business foundations course beyond the core requirements, and they can also take subsequent courses as open electives. The Tufts GBA business foundations courses focus on developing students’ practical skills in global marketing management, sustainable business dynamics, and accounting and finance. 

Expand Your Knowledge and Subject Matter Expertise

An international business degree can help you gain the knowledge and expertise needed for leadership roles that align with your interests. The Fletcher School’s GBA enables students to tailor their degrees to their career goals. 

As a Tufts online GBA student, you will select three electives within specific global business disciplines, enabling you to develop subject matter expertise. The four primary disciplines covered by the Tufts program are: 

• Business foundations, which builds students’ business knowledge and focuses on global operations 
• Global context, which aims to build students’ cultural understanding and leadership skills 
• International law, which focuses on the legal aspects of global business, including international business law and mergers and acquisitions 
• Analytical tools, which teaches students how to use data to make better economic and business decisions

Tufts students can delve into real-world challenges at international organizations during their capstone projects and on-campus immersions. Aligning your capstone project with your chosen focus area can help you develop in-depth subject matter expertise. 

Grow Your Professional Network 

Enrolling in a global business program is an effective way to build your professional network. As a Tufts online GBA student, you can connect with faculty and peers during online lectures and in-person immersions. 

The program attracts a diverse student cohort from various sectors worldwide; they share cultural experiences and actively learn from each other. You will join the Tufts and Fletcher School of Business alumni networks after graduating, facilitating even more networking opportunities with alumni whose careers span a range of industries . 

Advantages of the Tufts Global Business Program 

The Tufts online GBA master’s degree goes beyond the borders of a traditional global online MBA program. It seeks to provide you with broader leadership skills and the capacity to make better strategic decisions, think across geographic and disciplinary boundaries, and accelerate your business career.

As a Tufts online GBA student, you will gain an understanding of the international factors that affect any domestic or international organization, including geopolitics, global security, supply chains, economic policy, emerging market dynamics, and laws and regulations. The curriculum fosters deep contextual intelligence in key business areas to help graduates stand out in the job market for business leadership. 

In addition to convenient online course work, the Tufts GBA program stands out by offering two unique in-person immersions. One takes place on Tufts University’s campus in Boston, the other in an international location selected for each cohort. Both immersions offer contextual experience in project management and team building.

Next Steps: Apply to Tufts Online Business

The Fletcher School’s online Master of Global Business Administration could be the right fit if you seek a global business leadership role in business or business-adjacent organizations like government, the military, NGOs, nonprofits, and international relations organizations. This program combines foundational business knowledge and skills with in-depth international context beyond the scope of a traditional MBA. 

To take the next step to develop your business knowledge on a global scale, contact an admissions advisor to learn more about the Tufts online GBA admissions process , or start your application today. 

Build a Skill Set Targeted to International Business Leadership

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How Windsor’s Biblioasis found international recognition in the perilous publishing trade

Dan Wells, founder of Windsor-based book publisher Biblioasis, reviews a manuscript in his office in November 2021. Joanna Gigliotti/The Globe and Mail

Ira Wells is an Associate Professor at Victoria College in the University of Toronto .

For centuries, cultural consumers have assumed that art is the product of cosmopolitan centres. Most urbanites don’t think of our culture as something imported from the hinterland, along with our grain and hogs. Or, in the case of Windsor, Ont., our cars.

So when Dan Wells founded book publisher Biblioasis in Windsor, many expressed skepticism. “Nothing of any importance in the history of publishing has ever come from a place like this,” was the typical refrain, he recalls now.

Indeed, Windsor, a city of about 230,000, is best known as a hub in the automotive industry, and not as an exporter of culture, in any form.

“You’d say you were from Windsor, and you could see the recoil,” Mr. Wells, a long-time Windsor resident, said. According to conventional prejudice, Biblioasis should not exist.

While location seemed to be one strike against Mr. Wells, Canadian publishing has always been risky, as historian Roy MacSkimming reveals in his book about the industry, The Perilous Trade .

By the time Biblioasis launched in 2004, the Canadian book industry was well into a period of market consolidation, in which six foreign-owned multinationals controlled a vast majority of the market. In 2011, one of those giants, Random House, acquired the storied Canadian press McClelland & Stewart; two years after that, Penguin merged with Random House, turning the “Big Six” into the “Big Five.”

And while Penguin Random House failed in its 2022 bid to acquire Simon & Schuster, the trend toward industry consolidation has continued, with the private equity firm KKR buying Simon & Schuster for US$1.62-billion in 2023. Today, Canadian-owned publishers represent 4.8 per cent of book sales in Canada.

Dan Wells launched Biblioasis in 2004, a time when the Canadian book industry was in a period of market consolidation. Two decades later, the independent publisher is surviving, and by some measures thriving in the industry. Joanna Gigliotti/The Globe and Mail

Because our market is inundated with imported books, Canada is “one of the toughest markets to publish into in the English-speaking world,” according to David Davidar, former publisher of Penguin Canada. As the Canadian market has contracted over the past 25 years – annual operating revenue fell from $2.4-billion in 2001 to $1.6-billion in 2022 – the country’s independent publishers are forced to compete for market share with multinational corporate behemoths with deeper pockets.

For corporate giants and indies alike, publishing is akin to gambling, for the simple reason that even the most experienced publishers and editors can’t predict what will sell. For every brand-name author in the world of fiction trade publishing – Danielle Steel, Stephen King or Margaret Atwood – there are many more with maddeningly inconsistent sales. Conventional wisdom holds that just 25 per cent of books make back the authors’ advance against earnings.

Total revenue reported by English-language publishers of the Canada Book Fund (the government program that subsidizes Canadian-authored books) declined by almost $46-million, or 14 per cent, between 2009 and 2020, according to a 2021 report .

Meanwhile, profitability is razor thin. “Publishing and bookselling margins are among the tightest of any industry around: often 1.5 to 3.5 per cent, thereabouts,” said Mr. Wells. “Ours tend to be somewhat better, depending on the year.”

Despite all of the challenges roiling the industry, Biblioasis is celebrating its 20th anniversary this year. Its location – more affordable than any big city and a short drive from the U.S. border – along with its DIY spirit, has seen the company buck industry trends, offering insight into surviving, and by some measures thriving, in the perilous trade.

In the early days, Mr. Wells may have been hyper-attuned to preconceived notions about Biblioasis’s city of origin. But things have changed.

“Certainly, when I went around the book festival circuit in Canada last year, I would regularly hear Dan described as a genius,” said Stephen Marche, author of the Biblioasis title On Writing and Failure and many other books. “It’s my impression that most small- to medium-sized publishers in this country are trying to figure out how to imitate him. The smart ones, anyway.”

Financial information on the Canadian independent publishing industry is notoriously difficult to find, as private companies are not required to report their results. For their part, Biblioasis sales have been between $900,000 and $1.25-million per year since 2019-20, according to Mr. Wells. At the Biblioasis Bookshop, which Mr. Wells opened in 1999 in Windsor, sales are between $375,000 and $425,000 annually. Total corporate revenue (which includes grants and rental revenue) is regularly between $1.9-million and $2.2-million per year.

Biblioasis is far from the biggest independent publisher in Canada, a category that includes ECW and the House of Anansi, both based in Toronto. But not only have these big-city publishers been around much longer, both are affiliated with children’s publishers (Annick and Groundwood presses, respectively), which significantly bolster sales. Greystone, a Vancouver publisher that traces its history to 1971, probably the largest of the indies, also publishes children’s literature.

The young upstart Biblioasis, by contrast, publishes mostly adult literary fiction, a genre that accounts for just 2 per cent of the market. In this overall context, their success has been remarkable. “Biblioasis has achieved growth and scale in a way that few of their contemporaries have been able to match,” said Jack Illingworth, executive director of the Association of Canadian Publishers. That growth reflects both “publishing intuition and shrewd business decisions,” Mr. Illingworth said.

Bush Runner by Mary Bourrie, which took home the RBC Taylor Prize for literary non-fiction in 2020, is one of the award-winning books Biblioasis has published.

Of course, success in publishing is measured also in terms of cultural impact. Biblioasis has now published more than 400 books, including prestigious titles such as Alexander MacLeod’s Light Lifting (the press’s first Giller Prize shortlisting in 2010), Anakana Schofield’s Martin John (a Giller finalist in 2015), Britain’s Lucy Ellmann’s Ducks, Newburyport (shortlisted for the Booker Prize in 2019), and Mark Bourrie’s Bush Runner (winner of the $30,000 RBC Taylor Prize for literary non-fiction in 2020). In March, the press’s The Future , an alternative, dystopian history of Detroit by Catherine Leroux, was voted Canada’s must-read book for 2024 on CBC’s Canada Reads .

Readers may not care which award-winning book belongs to which publisher, but it matters tangibly, Mr. MacSkimming said. “Winning major awards can raise a publisher’s profile and stature in the industry,” he said. In ways that are hard to quantify, attention and prestige translate into sales. “The multinationals in Canada” especially Penguin Random House and HarperCollins, “scoop a lot of the awards and the profits thereof,” Mr. MacSkimming added.

While most books never make money, successful ones can generate much greater reward than other products with fixed consumer prices. Once the costs associated with writing, editing and designing a book have been covered, the per-unit revenue rises, which is why one successful book can subsidize four or five unprofitable ones.

The Big Five publishing companies, more invested in their quarterly earnings than in abstract notions of Canadian literature, focus their vast resources on a comparatively small number of blockbuster titles. Small and mid-sized publishers, by contrast, tend toward smaller print runs of a wider variety of writers. They also tend to sell directly to consumers via their websites (or, in Biblioasis’s case, their brick-and-mortar store), while the conglomerates do most of their business through Amazon.

It’s a tricky business, and there’s a certain irony in Biblioasis’s success at it. For years, Mr. Wells downplayed the fact that he was based in Windsor. Twenty years on, however, the company’s location seems more like a crucial launchpad for its success than an impediment to be overcome.

One factor was the price of real estate. Mr. Wells bought the Biblioasis Bookshop’s current Wyandotte Street location for $160,000. His 9,000 square-foot warehouse-office combination, in the central part of the city, cost $350,000. Comparable locations in Toronto might run him $2-million and $8-million today, respectively.

Initially an artistic risk, Ducks, Newburyport by Lucy Ellmann sold 50,000 copies (and counting) and became the Biblioasis’s bestselling novel. Supplied

Biblioasis not only owns its buildings but generates revenue from real estate (by renting out part of its warehouse), in addition to its publishing activities. Manageable mortgages also meant that Biblioasis could invest in its product and take artistic risks. Ducks, Newburyport , for instance, is a challenging, 1,000-page novel unspooled in a single sentence. The book was far from a sure-fire win, but Biblioasis believed in it.

In the end, on the back of major prize nominations and rave reviews in The New York Times and elsewhere, Ducks, Newburyport has sold 50,000 copies (and counting) and became the press’s bestselling novel.

“If I was in Toronto, where my margins were even thinner, I probably couldn’t have justified the gamble,” Mr. Wells said, but operating out of Windsor, “the weight of failure isn’t as desperate. Because less of our money is going to overhead we can take risks on experimental or international work that publishers in the centre can’t.”

Lower real-estate costs also mean more money to pay staff, who, in turn, enjoy a lower cost of living than they would in Toronto. Biblioasis employs the equivalent of 13 full-time workers between the bookstore and press. (Canadian small- and mid-sized publishers had an average of 2.6 and 15.4 full-time staff, respectively, in 2021, according to BookNet Canada).

Windsor’s proximity to Detroit, meanwhile, brings major economic advantages, especially the U.S. Postal Service’s economy shipping for books. Mailing a book from Ontario to California costs as much as $25. The same book can be shipped to California from Detroit for around $5.

That’s even less than the cost to ship a book from Windsor to somewhere else within Canada., Mr. Wells said.

With the company’s ready access to the border, Biblioasis can blanket U.S. booksellers and media with Biblioasis titles. As a result, its books are often reviewed in The New York Times, The Wall Street Journal and other venues across the United States – bringing Canadian authors to the American books market, which is approximately 10 times the size of our own.

The financial impact of that cannot be overstated. In five of the last six years, Bibioasis’s American sales have been higher than its sales in Canada, “which is almost unheard of for a smaller literary press,” Mr. Wells said. “We are profitable because of our American sales.”

Those American sales form the bulk of Biblioasis’s international sales, which since 2017-18 have been between 40 and 60 per cent of revenue, according to Mr. Wells.

“This year it might be on the lower end of that,” he adds, “in part because it’s going to be our best year in terms of Canadian sales in our history – owing, in part, to the recent Canada Reads win.”

But even the lower end of that range of international sales is still considered high, for an industry in which 31 per cent of gross revenue came from international markets, according to a 2021 report from BookNet. Most domestic publishers simply don’t make much overseas.

Nor can Canadian publishers – 65 per cent of whom made less than $1-million in revenue in 2021 – compete with the multinationals in purely business terms. Since the CanLit boom of the 1960s, and despite the best intentions of various federal governments, Canada has failed to develop a stable domestic book publishing sector.

“The level of demoralization among Canadian publishing workers is extreme,” Kwame Scott Fraser, the outgoing publisher of Dundurn Press, recently observed. The overall industry has been tanking for a long time. More than 80 per cent of Canadian writers live below the poverty line, according to the Writers’ Union of Canada, which called the situation “a cultural emergency for Canada.” Writers and publishers understand that their economic precarity is an accurate benchmark of the degree to which Canadian society values literary work.

“Canadian capitalism tells us every pay day what Canadian culture is worth.”

Canada’s publishing industry is fighting to survive, and Indigo, the country's largest bookseller, which has faced several disastrous years, is not exempt from the struggle. Sammy Kogan/The Globe and Mail

In many ways, Canada’s publishing industry is still fighting to survive. Increasing paper costs have driven up the price of printing (and of books – the average hardcover costs $5 more now than it did in 2015). Indigo, Canada’s largest bookseller, is holding on after several disastrous years, but its fate remains uncertain.

In addition to their marginal profitability, most presses are undercapitalized, are at or near their borrowing capacity and can’t fund strategic investments, according to Heritage Canada.

Readers’ attention, meanwhile, is split between more books than ever. “Last year, 847,477 ISBNs were reported in Canada,” Kenneth Whyte recently noted in ShuSH , a newsletter covering the publishing industry. “In the course of seven years, Canadians were confronted with 27 per cent more choices and chose to buy 7.6 per cent fewer books.”

Amidst these dire financial circumstances, Biblioasis is swimming against the tide. For all the strength of its publishing list, it is not immune to the bleak industry trends that befall big and small publishers alike.

Nonetheless, over two decades, Mr. Wells has demonstrated how the future of Canadian publishing could find success in places such as Windsor – to the benefit of bibliophiles everywhere.

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Law Firms Can Keep Lateral Partners With Support at Work, Home

When a lawyer announces their departure, firms often scramble to employ strategies to retain them. However, such efforts often prove too little or too late for these lawyers. As the barriers to switching firms has eroded, law firms must abandon traditional levers to attract and retain people.

The question for law firms is how they can proactively retain talent before it reaches a critical departure. How do you ensure your new lateral doesn’t move laterally again? How do you ensure a return on the time and investment that goes into recruiting by creating a “sticky firm”?

Communication

Gaining insights into the reasons why lawyers stay or depart will help you navigate the competitive legal landscape and refine your lateral retention programs. Develop a multipronged approach to reach different talent pools, and ask candidates what they value.

According to a 2021 McKinsey study , employees leave because they feel organizations and managers don’t care about them. Rather than wait for departures to trigger feedback collection, conduct a comprehensive 360 review every 90 days throughout the lateral partner’s first year, followed by quarterly reviews in the second year and bi-annual reviews afterward.

A 360 review will allow lawyers to provide feedback on what is working and where they need support, and ensure the firm is utilizing active listening. Approaching this process with empathy, soliciting candid feedback on integration experiences, and extending the review practice to existing lawyers—not solely lateral hires—enhances the effectiveness of this approach.

Incorporate the feedback and allow the appropriate departments to support that feedback through execution.

Read More: Lateral Partner Integration Requires Business Development Plan

Create Community

Law firms must also demonstrate a willingness to invest in a lawyer’s personal development, know their organizational culture, and ensure that culture emphasizes meaning and purpose.

Mentorship initiatives can also significantly contribute to lateral lawyer satisfaction, integration, and retention. Pairing incoming lateral hires with experienced mentors—who want to help—provides a supportive network, smoother integration, and fosters a sense of belonging.

This mentorship dynamic helps laterals navigate the firm’s culture and provides a go-to resource for addressing challenges, questions, and professional growth. Mentorship and access to firm resources shouldn’t be reserved for a particular level of seniority.

Access to business development professionals should also begin as soon as the lateral walks in the door, regardless of title. Effective business development strategies can help lateral attorneys quickly build their network, develop new business, and establish themselves as part of the firm. This support can increase billable hours, revenue, and help create a more successful career trajectory.

According to the Major, Lindsey & Africa 2023 lateral partner satisfaction survey , a firm’s perceived ability to support lateral practices is a significant factor in attracting partners to their current firms. Positioning the BD team as collaborative partners in executing on promises made during recruitment and integration, and providing sufficient resources to support these objectives, is essential to lateral retention success.

Read More: Lateral Partner Recruiting Must Focus on Honesty and Clear Data

Flexibility, Paid Leave

When employees are supported during significant life events such as birth or adoption, caring for a family member, or their well-being, they’re more likely to return to work with a positive mindset. This can enhance productivity and focus, benefiting the firm’s overall performance.

A MetLife annual employee benefit trends study analyzed a subset of the Millennial generation, which represents the largest cohort in the workplace—and found that 74% of workers born between 1993 and 1998 want paid and unpaid leave benefits.

Offering paid parental leave is far less expensive than losing an employee who might otherwise quit. Employers should consider the costs of replacing workers who leave because they lack access to paid leave when raising their families.

Recruiting and training new talent is neither cheap nor easy. And once one employee quits because a workplace is unfriendly to parents, others are likely to follow. Paid parental leave is a better way to encourage lawyers to stay.

In the legal profession, the top three reasons women lawyers cite for leaving are caretaking commitments, level of work stress, and emphasis on marketing or originating business.

Business development professionals should support lawyers before and after their parental leave to help ensure a smooth transition back to work and continued success at the firm. To do this, the business development team should work with the lawyer to develop a comprehensive plan for their absence, which includes strategies for keeping clients informed and maintaining visibility while they’re away.

This may involve working with the lawyer to build their professional profile and remain top-of-mind with clients. Additionally, the business development team can help the lawyer plan their return to work, including strategies for reconnecting with clients and building new business relationships.

While law firms historically relied on brand reputation to ensure attorney satisfaction, contemporary dynamics demand a deeper understanding of why lawyers choose to stay or depart.

It’s pivotal for firms to keep in mind the competitive landscape, and craft a robust lateral retention program.

This article does not necessarily reflect the opinion of Bloomberg Industry Group, Inc., the publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Brian J. Carrozza is director of client development at Goulston & Storrs.

Courtney C. Hudson is business development manager at Baker Donelson.

Megan K. Senese is co-founder and principal at stage, a women-owned business development and legal marketing firm.

Write for Us: Author Guidelines

To contact the editors responsible for this story: Jada Chin at [email protected] ; Jessie Kokrda Kamens at [email protected]

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