Developing-economy businesses that have low local costs now have potential to participate in the global market, according to this study. Economic growth in developing countries has consistently outperformed or equaled that of industrialised economies during the previous decade. In recent years,  Bangladesh, Vietnam, Vietnam, China, India, México, syria U.a.e., Turkey, and Brazil be the fastest-growing countries. Electrical machinery exports from Vietnam increased by approximately 30 times between 2008 and 2018. In this instance, manufactured goods and economic growth in underdeveloped countries are clearly demonstrated.

Agricultural products are the third most common export category, according to WTO data, after manufactured commodities. In 2018, fuels & mining products saw the largest growth rate (23 percent), followed by manufactured goods (8 percent) and agriculture (13 percent) (2 percent ). At a 5% discount, this is a great deal. Further research reveals that of all manufactured goods, clothing experienced the world ’s highest growth (+3.3 percent).

Although the World Trade Organization (WTO) has slashed its global trade growth forecast for this year, it is still reasonably pessimistic. There has been a decrease in the 2020 growth projection from 3% to 2.7%.

The importance of small and medium-sized businesses (SMEs) in global trade.

Entrepreneurs who want to take their companies global may reap the benefits of local enterprises’ adaptability, mobility, and lower costs.

According to OECD figures and dialogues in 2018, local businesses can take advantage of the many activities (manufacturing, retail, marketing, etc.) distributed over multiple sites by using their low price to join global markets and potentially becoming industry leaders.

To become a global exporter, SMEs can reap the benefits of GVCs and focus on the following elements, according to the OECD:

Interact with companies all over the world.

Make a name for yourself in the world’s supply chains.

Enter the global market as a supplier to major organisations.

The use of digital technologies can lower the cost of doing business.

Become familiar with the latest information, tools, and resources, as well as business relationships.

Small and medium-sized businesses (SMEs) have the ability to grow at a faster rate than global export giants. When a corporation expands into new markets outside of its home country, it boosts its potential for growth and innovation.

Consider that in most OECD countries, small and medium-sized businesses (SMEs) account for at least 95% of all firms and 2/3 of all employment. Between 20 to 40 percent of shipments are generated by local businesses in the same locations.

An opportunity than as a hindrance for companies looking to expand globally.

There are some areas where local businesses, particularly small and medium-sized ones (SMEs), can outperform even large companies thanks to the power of Global Supply Chain (which expand business activities while lowering costs).

Avoiding and minimising export restrictions.

According to OECD or WTO data, non-tariff trade barriers have a significantly bigger impact on local enterprises. This can be explained by the fact that trade costs account for a higher percentage of SME export values. Comparatively speaking, tiny businesses are exempt from the concept of scale. Even the most skilled and effective companies are able to expand their operations across multiple overseas markets.

In fact, non-tariff obstacles are far more troublesome than tariffs. There are additional costs associated with doing business in a non-tariff environment. The success of small local firms is largely dependent on their access to information, knowledge, technology, and other resources.

Surveyed by the OECD, Facebook and the World Bank, 63% of respondents claimed that identifying business partners, external trade restrictions and disparities in national regulations, immigration rules and limited online payment choices were the primary obstacles limiting imports (26 percent ).

What is the solution to these issues? Technology and platforms that minimise, simplify, and circumvent export constraints are the order of the day in today’s digital world. Joining a wider online platform / community can help remedy the lack of information.

Digital analytics or statistical technologies can help you bridge the technology and information gap.

Digital platforms like b2b marketplaces are also great instruments for establishing international relationships, discovering business partners, and attracting buyers. This is a terrific approach to break into a new market and establish a footing there.

It’s possible that a trade agreement can safeguard small enterprises from having their exports thwarted by tariff barriers and convoluted customs regulations.