GuruOnline Blog

All advice on the International Trade Channel is delivered by experts from 12 participating organisations including the Institute of Export, HM Revenue & Customs (HMRC), the CBI, UKTI, Business Link, The Middle East Association, the Intellectual Property Office and the China-Britain Business Council.

Sponsored by the Royal Bank of Scotland, the project is the first time such a comprehensive resource has been offered free of charge and reflects the Institute’s role as the leading authority in best practice and competence for businesses trading globally.

The UK’s leading independent international trade body has brought together a raft of leading experts in the field of exporting and global business to launch a free online tool.

The Institute of Export and International Trade has spearheaded www.guruonline.tv/export which answers essential questions about conducting business abroad using more than 500 bitesize video clips – from how to manage currency to dealing with interpreters, as well as often overlooked details about local custom and etiquette.

All advice on the site is delivered by experts from 12 participating organisations including HM Revenue & Customs (HMRC), the CBI, UKTI, Business Link, The Middle East Association, the Intellectual Property Office and the China-Britain Business Council.

Sponsored by the Royal Bank of Scotland, the project is the first time such a comprehensive resource has been offered free of charge and reflects the Institute’s role as the leading authority in best practice and competence for businesses trading globally.

The concept was brought to life by online media company GuruOnline which uses video to provide users with the insights and guidance of industry’s most esteemed figures. An official launch took place at The Middle East Association at Bury St, London on Tuesday, June 23.

The Institute of Export, a not-for-profit organisation, is the only professional body in the UK offering recognised vocational qualifications in international trade.

It also provides a dedicated business membership scheme, designed to deliver expertise to firms involved in international trade. The service includes direct mentoring, a specially-designed ‘quick-answer’ system and tailored corporate training for staff involved in global trade.

Lesley Batchelor, Chair of the Institute of Export and International Trade, said: “No other resource offers a breadth of information in such an accessible format. In bringing together the UK’s most important international trade bodies we have concentrated a wealth of expertise on one site.

“Global markets can make a significant contribution to Britain’s economic recovery. However, we need to ensure businesses have the knowledge and skills to reap the rewards.

“This site offers enterprises of all sizes advice on how to overcome the challenges they face and clear answers to the questions that arise as they seek to make the most of international opportunities.”

John Bugeja, RBS head of trade UK & Ireland said: “We are proud to strengthen our relationship with the Institute of Export through this innovative service. As the UK’s largest corporate bank, RBS is committed to supporting the needs of UK businesses, and international trade is an integral part of this. Moreover, at a time when companies are increasingly seeing growth opportunities in overseas markets, this portal gives them the advice and information they need to make better informed decisions for their business.”

China Britain Business Council Director Chris Cotton said: “This is an excellent quick reference guide compiled specifically for UK exporters – and the use of video content ensures that it is an exciting, engaging and valuable source of information on many aspects of international trade.”

The Middle East Association Director General Michael Thomas said: “Many businesses find it difficult to steer a path through the minefield of international trade and simply want an overview of how to go about conducting business abroad. This is a terrific resource for doing just that, and it does a terrific job of unpicking complex themes and topics.”

Richard Hall, Managing Director of Pd-m International Ltd, a product design and global manufacturing consultancy, said: “The quality of information and video footage available on the site is very informative, accurate and compelling. Clearly the Institute of Export has spent a lot of time in creating the new website to a highly professional standard. The portal is very easy to access and welcoming to navigate.

“I have no doubt that this will be an excellent source of information and inspiration to those in or considering international trade.”

Test your local knowledge:
• Why if you are doing business in the Middle East is it okay for the person you are meeting to be late, but not for you?

• Why might March 8 be an important day for the women in your Russian office, while February 23 is special for the men – and what you should give each of them on those days?

• Why does it pay to present your business card at a first meeting in China with both hands?

When it comes to business advice, Business Link are one of the most recognised names in the UK, they cover a whole host of topics and GuruOnline are proud to have several exclusive interview with some of Business Link’s most authoritative international trade experts. This blog is just a quick look at a few of the questions they answer; don’t forget to follow the links at the bottom of the post for more comprehensive advice on international trade.

The primary reason most companies trade internationally is to reduce risk, if you think of the old adage of not putting all your eggs in one basket, the same applies to the business world and international trade, if you’ve got a stable market here in the UK it might prove prudent to look at how you can grow your business internationally.

The first step you would take when looking into international trading would be examining your business here in the UK, this would make it easier to start looking for a market internationally that might compliment your own. It’s simply a case of thorough research

One of the main factors to take into consideration when trading internationally is finance; this is again going to involve thorough research. Whichever country or countries you choose to trade with you will need a very comprehensive knowledge of their currency both in relation to your own currency and the value of your product or service. One of the more secure ways to trade internationally is with letters of credit, these are a banking instruments you use to insure that you’re paid, if you have a letter of credit against any transaction you are guaranteed to get the money as long as you adhere to a set of criteria that you agree with your customer at the outset.

When it comes to international trade, you should always make sure the export price has been carefully researched and you understand the different elements of that price, this means your product or service is very unlikely to be marketed at the same price you might charge in the UK. There are several factors you’ll need to take into consideration before concluding a price you wish to market your product or service at. The first is how much it might cost you to collect and convert any foreign currency. Secondly you’ll need to make sure all your logistics are covered and thirdly, you will have to do some form of market research too and this cost will also need to be covered in some shape or form. These are just three very generic points and you may come across many more especially when you start to deal with the specifics of individual countries.

Preferential trade agreements are agreements set up by trading blocks, an example of a trading block would be the European union as it’s a block of countries that work and trade together and have agreements. Basically, it means it’s easier to do business with some countries than it is with others.

European Union regulations have dramatically changed the very nature of international trade. In terms of distribution, you are no longer allowed to sell exclusively in any specific market, you can’t be restricted, but your marketing activities can be. As far as agents are concerned, they actually have employment rights and you have to be very careful about how you appoint them. When it comes to international trade it would advisable to research very thoroughly before you signed anything.

It’s not just the business world which you’ll need to research when trading internationally, you must also understand local customs, cultures and etiquette too. One of the nicest things you can do is actually be observant of the business etiquette you’re looking at. For example if you were to spend a period of time working with the Japanese, you would learn they are not very keen on hard sell, you’d also learn they have a tendency to nod their head and say yes a lot as you’re talking, this doesn’t necessary mean they’re agreeing with you but that they understand what you.

Punctuality can also be a major area of importance with international trade, culturally we tend to vary in the way we treat our meetings, in the UK we like to be punctual and we try very hard to keep our meetings down to about an hour, if you went over to Italy, they’re not so punctual and it’s not an offence not to be punctual. In Germany it’s a huge offence to be late for a meeting, some Germans will not see you if you’re more than ten minutes late. These things need to be looked at and planned into any visit you make.

International trade can be a very complex but very rewarding business venture. As with all business ventures, thorough research and due diligence is essential. There are plenty of organisations out there which are designed to help you, whether it’s step-by-step assistance you need or just a general nudge in the right direction.

Business Link is there to offer free business advice and support on almost any topic; GuruOnline has over 50 exclusive online videos from Business Link offering free international trade advice on a whole host of topics from incoterms to international marketing to managing risk to operational requirements.

The Russo-British Chamber of Commerce, which is a not-for-profit, company limited by guarantee that has worked to promote trade and cooperation between the UK and Russia since 1916.

If you’re planning a business trip to Russia any time soon, there are several things you may not have even thought of which will need to be taken into consideration. Here is a quick checklist just to make sure you have everything covered.

Currency
The dominant form of currency in Russia is the ruble. It is best to get your money exchanged before you get to Russia, although there are plenty of places to exchange your currency, especially in the bigger cities, you might have problems exchanging large amounts of pounds sterling. It is much easier to exchange dollars and euros.
There are cash points in Russia, but unfortunately there are not as many as there are in the UK in a normal city or town. It is best to be prepared to pay for most things with cash and take advantage of cash points when you see them, especially if you’re staying in a smaller town.

Visa
There is a visa requirement between the UK and Russia; if you’re going to Russia on business you’ll need a visa. If your business trip is going to be short, or you’re just going for a meeting, you will simply need a business visa, this would usually be provided by your Russian business partner.
If you’re trip is going to be slightly longer, if you actually intend to work in Russia, then you’ll need a work permit as a business visa will not suffice. A work visa is much more difficult to obtain and you will need proper legal advice and the aid of a government institution to help obtain you one

Accommodation
The central city hotels will be the most comfortable for businessmen, they are safe, clean and hospitable.
If you’re trip is going to be too long to justify a hotel and you decide to rent accommodation, it is advisable you have someone with you who speaks the language and knows the legalities of the property market to ensure you remain safe.

Legalities
According to Russian law, any foreign citizen arriving into Russian territory has got to register with the police, if you don’t register you’ll have to pay a fine and find yourself in a lot of trouble. It’s common practice for Russian authorities to stop people on the street and check documents and passports.
There are two ways of registering with the police, you can either register at the hotel where you’re staying and that will count as registering with the police. Or making the state aware you’re in the country and you’re being looked after and it’s easy to find you. If you’re renting an apartment, your landlord should be able to do this for you.

Travel
As far as traveling in Russia is concerned you’ll probably find public transport more efficient than your own car because the traffic situation is quite difficult in the larger Russian cities like Moscow and Saint Petersburg. Most of the bigger Russian cities have an underground system, this tends to be very reliable and is particularly economic too, and is very easy to navigate as all the signs and maps are translated into English too.
If you need to travel across Russia, the most effective way to do this would be by either train or plane. Both, like the underground system, are rather cheap. Obviously the train takes a little longer but it can be a nicer journey where as the plane would be much quicker even though it may cost a little more.

GuruOnline offers an exclusive video interview with the Russo-British Chamber of Commerce so for more international trade advice on doing business with Russia, you can watch the whole interview for free now.

GuruOnline is growing every week with new contributors and sets being added all the time. Our international trade sets are one of the most popular, receiving thousands of views every month.

In one of my previous blogs I talked about the exclusive sets by the China Britain Business Council (CBBC) and the practical free business advice they offer on international trade and the benefits trading with China can bring to your organisation.

One of our new sets are from the Middle East Association, which similar to the CBBC, give free beneficial advice to business that could profit through international trade.

Michael Thomas, Director General of the Middle East Association, explains how major companies in the UK like Shell, BP and Rolls Royce etc set up the organisation nearly 50 years ago, to promote good will and trade with the Middle East region. Today they’re representative of 70% of all UK exports, they’re a non-profit and non-political organisation which ensures their advice is impartial and in your companies best interests.

Michael goes on to explain how the Middle East is the fastest developing market in the world, there is no other area or region of the world which is growing as fast as the Middle East, you just have to look at the amazing progress that’s been made in Saudi Arabia and the other Gulf countries to see what’s going on there and no British company can afford not to be involved.

There’s lots of assistance out there for companies looking to do business with the Middle East, the British government is making a huge effort to promote trading with the area as is the UKTI. The commercial departments and the embassy’s around the region are much more business focused than they ever were too.

One of the major sectors which is coming out at the moment is the educational and vocational training side, the Middle East has a major problem, in that it has to create jobs for it’s people, about 50% of the population of the Middle East are under 25, and they all need jobs and training to do those jobs.
Populated countries like Saudi Arabia and Egypt are also looking for joint venture corporations with a world company; so, anyone in the UK with a good product who would like to look into a local manufacturer would also prosper in the Middle East.

Michael also explains some of the more particular details of international trade, including business visas and legalities, traveling and what to look out for with each of the major Middle East countries, from accommodation to customs to currency. For more international trade advice on doing business with the Middle East from the Middle East Association check out the rest of the sets on Guru now.

One of the most recent contributors to GuruOnline is the China-Britain Business Council (CBBC)
The CBBC is the UK’s leading source of practical services to British companies doing business in China. They are there to provide help to businesses of all sizes who are looking into doing any type of business in China. They have offices throughout the UK and a strong presence throughout China. Whether you’re just after some advice or you need step-by-step support to do business in China, CBBC is the definitive expert in the industry.
There are several sets on Guru from the CBBC covering, basic information about CBBC, doing business in China and how it can benefit your business, operational business advice and the culture of China, the more intricate details of suppliers and selling in China and setting up HR in China.

Chris Cotton gives a comprehensive introduction to the China Britain business Council before going on to talk about the basics of doing business in China, and how it can benefit your business.

Giles Backburne talks about the operational aspects of doing business with China and how culture can impact on this, from the language barrier including meetings and website translations to traveling and factors like finance, transportation and customs.

Ralph Rogers explains the practicalities of setting up HR in China, covering topics like how to set up a representative office, to hiring staff and contacts in China. He also covers the legalities of leasing and selling technology to China.

Chen Wu gives advice on suppliers and selling in China. He talks about verifying Chinese business information and gives tips on making sure you can trust your business contacts especially when you use the Internet.

If your company is thinking of doing business with China, these sets could really get you started.