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Despite alarm over trade wars and economic protectionism, the continued globalization of the world economy is gaining momentum. National markets are interconnected like never before, with this interconnectedness likely to reach new all-time highs in the year ahead.

While globalization generally is lauded by economists, politicians, and businesspeople as a general force for good, increasing business opportunities and facilitating free trade, it also comes with some challenges. If you're a smaller business, increased globalisation also means greater competition from overseas rivals, as well as numerous downward pressures on wages, fees, and profits.

However, an online business looking to make a profit in the modern economy need not worry, as they are better placed than other types of business to take advantage and reap the fruits of globalisation in full. Here's how your online business can make a healthy profit in a global marketplace. 

Identify Overseas Target Audiences 

Not all markets are created equal. For your e-business to thrive, it is essential that you conduct the market research necessary to find out which countries you should be targeting. This can mean researching which countries have audiences that will be most receptive to your product, based on the volume of sales for similar products already. For an online business, in particular, it means knowing which markets are most likely to see and be able to buy from an overseas retailer. 

Portugal and Ireland, for example, have the greatest global proportion of citizens who buy online from abroad, at 22% and 20% respectively. These are the kinds of markets you should be targeting. It is important to use the right resources to learn more about the global market and its fluctuations, with platforms such as IG Academy existing to provide information to beginners and experts alike. Once you know who you're selling to, the rest is simple. 

Develop a Global Infrastructure 

The next step is to ensure you have a business infrastructure in place to effectively sell your wares on the global market. At a basic level, this means having digital payment platforms that can process cross-border payments efficiently, with maximum convenience for the customer. Platforms such as PayPal and Alipay (especially for Chinese consumers) are industry standards when it comes to facilitating international commerce on a smaller scale. 

You'll also want to have an infrastructure in place that can properly handle everyday business tasks such as cross-border taxation, invoicing, and, of course, shipping. Establish networks with the right suppliers and logistics companies to ensure your international trade goes off without a hitch. 

Prepare for Shocks 

Lastly, a prepared business is always a successful one. Operating in the global market means that your business will be vulnerable to shocks and downturns that occur across the world on an almost daily basis. You'll need to have an in-depth knowledge of the markets you choose to operate in so that you're aware of your options should you need to make a quick response to a crisis.

Knowing the legal landscape of a country you're trading within is also vital so that your rights are well-protected in the event of a nasty surprise. Once you have your backup plans in place, your global trade will be secure and protected. 

Operating in a globalized world means competing within it. Always be prepared so that your chances of making substantial profits are as high as they can possibly be.

Online Businesses: How to Profit in a Globalized Market
Digital Mag

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