International Finance Trends

International trade provides unique opportunities and risks for investors. U.S. exporters looking to expand can learn how best to invest by analyzing current trends.

international finance, trends in international finance

Trend #1: Countries Rebalancing Their Import-Export Trade

This trend first became apparent as trade slowed in the Asia-Pacific. China’s incredible growth over the last decade was influenced by heavy reliance on import-export trade. They exported massive amounts of inexpensive goods all over the world – a rate of growth that was not sustainable.

Over time, China has decided to rebalance, shifting away from relying on other countries to buy Chinese goods. In the past, China imported goods, but did not manufacture in exchange for investment. Presently, China wants to sell what it makes to other countries but also produce everything it needs for domestic use.

Countries that relied on China’s investment in exchange for goods now struggle to find comparable markets for their exports. China is not the only country trying to develop domestic suppliers for materials previously imported while simultaneously increasing exports. The US and EU have imposed tariffs on China’s exports, further slowing trade and providing benefits to domestic manufacturers.

Trend #2: Cooperation Among Countries

Many countries are searching to export more and find domestic sources for their needs, but there is also a growing spirit of cooperation in many areas of the world. Countries cooperate through treaties and international organizations when it’s mutually beneficial.

For example, as the data economy has grown, businesses have recognized that the global economy often benefits from cross-border data transfer. Large-scale businesses that operate multi-nationally benefit from loosened data-transfer restrictions. This allows businesses to use online resources to export, trade services, and collect data from sources around the world.

cooperation between countries

Trend #3: Growing Export Opportunities in India and South America

The United States and Brazil have maintained a good relationship over the years. Over time, economic opportunities have continued to expand for both countries. Brazil is the world’s ninth-largest economy, and trade between Brazil and the United States has reached unprecedented levels of volume. Brazil imports aircraft, machinery, petroleum products, and electronics.

India provides a growing market for U.S. exporters, purchasing precious metal and diamonds, machinery, optical equipment, and agricultural products.

The U.S. provides a growing amount of goods to Central and South America, including countries like Chile, El Salvador, and Peru.

Peru offers many opportunities for exporting. The Peru Trade Promotion Agreement eliminated tariffs on 80% of U.S. exports, which has helped make America one of Peru’s top trade partners. Peru has a strong economy and an expanding middle class, eager to purchase premium merchandise. Some of the best prospects for exports to Peru are mining, construction and medical equipment, food processing and packaging, and industrial chemicals.

Partnering with Drake Finance

Successful and knowledgeable exporters can turn to Drake Finance for their transactions. Drake Finance specializes in emerging markets and provides solutions that fit your needs. Contact us today to determine what opportunities and advantages are currently out there for your business.

 

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