GlobalSelling: How International e-Commerce Can Catapult Your Business to Global Success

Overview

In these times of globalization, international trade has become a key driver of growth. Historically, nations open to global markets have experienced a notable increase in their per capita income, far outperforming those that have maintained protectionist policies.

The relevance of the Gross National Product (GNP) as an indicator to measure the contribution of international trade to economic development is fundamental. This indicator not only captures the total value of income generated by residents inside and outside a country, but also reflects how global productive factors interact in the financing, manufacturing, purchase, sale and promotion of goods/services internationally.

Considering the various flows of international trade—which include physical goods, services, financing for productive projects, data and knowledge exchange, and telemigration—the GNP offers a unique perspective on how these exchanges influence human development in countries at all income levels.

Low-Income Countries: Trade in Physical Goods: Local manufacturers who introduce their products into global markets discover that sales margins in other markets are higher, which maximizes their income and contributes to increasing the national GDP. Services and Telemigration: Workers who offer their services to countries with higher wages not only improve their personal income, but also encourage the entry of foreign currency into their local economy, strengthening the GDP.

High-Income Countries: Improved purchasing power: Purchasing products from other countries allows access to similar or identical items at more competitive prices, which increases purchasing power and keeps more foreign currency within the country. Financing Flows for Productive Projects: For example, a German pharmaceutical company invests in an emerging Colombian laboratory in exchange for a share. This investment expands operations and knowledge-based trade and raises Germany's GDP by integrating new productive assets.

Financing Flows for Productive Projects: For example, a German pharmaceutical company invests in an emerging Colombian laboratory in exchange for a share. This investment expands operations and knowledge-based trade and raises Germany's GDP by integrating new productive assets.

Here is a video that goes into more depth on the topics I just mentioned:

The Amplifying Impact of International E-Commerce on this Reality International trade and especially international e-commerce have blurred the borders when it comes to selling products and services. People from every country are trying to generate income and capture jobs all over the world, thanks to how easy it has become to do business online internationally today.

Why is this situation amplified with E-commerce? Because of consumer preferences. Three key factors influence purchasing decisions in e-commerce: the final price of the product (including taxes, especially for imported goods), the delivery time and the reputation of the seller. Thanks to advances in international logistics, which allow global deliveries between 24 and 96 hours, the difference in delivery times between international and domestic orders is almost non-existent. Since the seller's reputation can be cultivated with consistent and reliable business practices, the final price becomes the most critical deciding factor for consumers, whether the product is shipped from within the country or from abroad.

Why do we talk about more advantageous prices when it comes to the same products? The answer lies in the fact that the same item can have different prices depending on the country. This phenomenon is a pillar of international trade: buying a product in country A, where its average price is lower, to sell it in country B, where it is more expensive on average. In addition, international e-commerce plays a crucial role in facilitating information for the detection of these price arbitrage opportunities, an essential condition for boosting global trade.

Direct-to-Consumer (DTC) e-commerce has changed the reality of trade: In the past we found a manufacturer in country A and a seller in country B. Today that line has been erased, and it is possible to sell directly from the manufacturer in country A to the consumer in country B. This modifies the relationship of foreign exchange generation and employment in each country. Jobs and foreign exchange that were previously in Country B are now captured by Country A.

It seems complicated, here is an explanatory video:

Conclusion: Growing global competitiveness and the interconnection of markets demand that populations adopt a global vision that contemplates both internal and external opportunities for the development of their economies in an inclusive and beneficial way. The future of economic and social development will depend on the ability of countries to "grow" or "shrink" through actions that promote the creation of value and improve the quality of life.

We can expect that the future will be a race to increase the Gross National Product (GNP) of countries, summarized in "How much GNP do I lose vs how much GNP do I gain." And in these installments of Global Selling - "How to take your company to the world" we will try to facilitate understanding to enhance this process. Today it was time to address theory to lay the foundations. In our next installment, we will focus on the practical application of how to become a Global Seller, because as we always say: "Let's take your business to the world! 🌐”

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