Study: Exporters Who Use Global Trade Firms Succeed

Columbia University’s international business school reports that companies who use intermediary firms to develop and expand international trade experience successful growth in global trade. The report is based upon empirical evidence taken from recent field studies, and is due for publication this month in Volume 84 of  Journal of International Economics.

Hanson Marketing enjoys reading what this report has to say, because it jives with our goal to form and lead international growth strategies for small to midsized exporters. According to Columbia University’s news release on the study, “The study showed a direct link between the size of the firm and the use of trade intermediaries, implying that small firms can, and do, access foreign markets through intermediaries even when they aren’t large enough to cover the fixed costs of direct exporting.”

Providers of international business strategies and services like ourselves typically work alongside small to medium sized manufacturers and service providers who, while small in size and head count often take a leading role in their respective market sectors. So, they truly are a big fish in a small pond, despite their size, and this is what they need to capitalize on.

The report continues, “Once small firms gain access to foreign markets, they can develop their own contacts there, enabling them to become direct exporters in the future. The model also predicts that intermediaries will be relatively more important in markets that are more difficult to penetrate”.

Read the news and link to the report here.  More info on Columbia University’s Jerome A. Chazen Institute of International Business here.

For global growth strategies that link your products to markets worldwide, contact us.

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