International Vision: Business Looking Beyond Economies
September 28, 2018
Who says that international investing is for those with a large enough contact list and bank account? The world simply wouldn’t survive with that kind of mentality as national economies need people to cross the floor at every level. Especially businesses helping other businesses because one way to bridge different economies is to have small businesses invest in and work with similarly sized business across the world. But why would anyone do this? Although there may be different products and strategies, the needs of consumers is relatively similar. For example, a smartphone network service in France is going to be different from on in Vietnam. However, the fundamental need is the same, they wish to provide a service to consumers that want to stay connected and use their smartphones to consume media. What comes into play? Investing in each other to provide more data and wider coverage to consumers, and swapping acquired knowledge. If done between to contrasting economies the costs could be very low also.
Somebody right now on the other side of the world, has the same passions and desires as your business. They want to do the same things you’re doing but in their own market. Emerging markets are some of the most amazing investment opportunities if not the most exciting. Out of a slum these countries are rising and modernizing at an astonishing rate. If you’re a business looking to invest in such economies, take a look at ways to invest in international markets such an in exchange-traded-funds (ETFs). These are groups of stocks that could be from just one industry or simply a mixture of all different types of industries. The stocks amalgamated are packed together to make sure losses are at an absolute minimum. If one stock that is sugar cane drops, another stock that is battery technology rises, then the loss is balanced out. Therefore investing in ETFs that are in emerging economies isn’t just safe, it’s a way to understand how that nation is emerging.
Investing into a counterpart
Looking into an emerging market, you should be willing to search for a counterpart. As aforementioned, investing into a business that is just like yours in the fundamental aspects can be incredibly useful. Not only do you stand to make good returns for the amount of money invested due to your currency being worth a lot more than the emerging market, but you gain expertise into their consumer culture also. One day you might want to touch down in one of the airports of this market and forge your own way in the country by setting up another or brand of your current business. Therefore, you may wish to go to an event that is hosted in the emerging economy and become an investor in a business and industry that you are already in. There won’t be any surprises in knowledge and understanding and you can help the owner first hand.
Small businesses should be willing to go international. Don’t allow emerging markets to be swallowed up by large corporations when you could be investing in ETFs that spread your money around different successful stocks. Find a partner or business to invest in quickly, so you may have a far better understanding of the potentials of your business and industry in this new market.