Understand how negotiations between countries can influence your international business
When it comes to choosing the ideal export market, several factors influence the choice, including the international agreements between countries.
There are more than 250 trade, multilateral and bilateral agreements in the world. They deal with trade, service and movement of people, among other things, and can facilitate or hinder the entry of your product in another country.
The different agreements
When we talk about international relations and foreign trade, bilateral agreements are contracts negotiated between two countries and have different themes that can be related to immigration, security and trade.
Multilateral agreements are signed between three or more countries, for example, contracts concluded between economic blocs, such as Mercosur or the European Union.
In the scope of international trade, the agreements seek, in most cases, to reduce import taxes for those involved in transactions between countries.
The objective is to promote international trade, especially for products in which there is an internal demand beyond what domestic producers can supply, or when there is no similar product in the importing country.
There are several factors involved in these agreements:
- Market size
- Commercial facilities
The pacts signed will also list a series of products that will benefit from exchanges between those countries.
This means that, if your product is in that list, your chances of success in the internationalization process increase.
Knowing these agreements in depth will make it easier for your business to enter the chosen market.
The analysis of markets and international agreements is part of the initial phase of export planning, known as internationalization plan .
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