Globalization and Competition in Import Export Business
To understand the essence of globalization one does not have to look hard to find what’s it all about. Following is a somewhat twisted yet essentially the very announcement that appeared in the paper when Princess Diana died in the well-publicized automobile accident:
“An English princess with an Egyptian boyfriend, uses a Finnish mobile telephone, crashes in a French tunnel in a German car with a Dutch engine, driven by a Belgian driver, who was high on Scotch, followed closely by Italian paparazzi, on Japanese motorcycles, treated by an American doctor, assisted by Filipino para-medical staff, using Brazilian medicines, dies!”
The words that ring so loudly in this newspaper announcement are: ” we can find anything, any product, anywhere, in any country around the world, from just about any country, anywhere, whatever the continent!”
Globalization, free trade and the proliferation in shipping and air travel opened new opportunities in the import export business. You indeed need to think globally when it comes to import export as competition is fierce.
Some 25 years ago when you’d visit a wholesale trade show such a Los Angeles Gift and Jewelry Trade Show, which is open to trade only, where manufacturers, importers – wholesalers sell to retail store buyers, and you’d search the show catalogue index under a product category of “Bali, Balinese jewelry, garments, fashion accessories” you’d find handful of exhibitors listed. Over the last decade the number of importers offering products, of immense variety, manufactured in Bali and imported from Bali, under the Country of Origin – Indonesia, has increased exponentially. Look for imports from India, China, Peru, whatever the country, in any trade show today and you’ll find no shortage of suppliers, whatever the product category.
Look around the US Customs pages under the Homeland Security website, look up statistical data for volume of imports into the United States on annual basis, come across any documentary feature from US seaports and airports and US Customs bonded warehouses or free trade zones and you will marvel at the infinite volume of containers arriving into this country on daily basis. Immediately you may wonder if there is any point in getting involved in import export, if there may be room for your venture and becoming successful. The answer is “yes” as long as you understand who the players are, how the business operates and how one needs to get involved to have a chance.