Exporting Fact Sheet - Selecting and Researching Foreign Markets

Summary

To properly select a potential foreign market requires that you understand the physical, economic, political and cultural factors that shape and influence that market and where your product or service fits into it. The Canada-Saskatchewan Business Service Centre Reference Library can assist you with your research requirements and suggest other organizations that can provide you with additional advice and information. Our  Saskatoon Reference Library contains a large selection of books, directories, videos and CD-ROM's to assist new or existing exporters investigate potential foreign markets. Also, check the country research and company links on this page.

What questions do you need to ask? Following are some examples:

Demographic considerations:

• Is this country prone to natural disasters?
• What modes of transportation are available to get your product into the country?
• What is the population? Of that, what percentage is in your target group and what percentage of that group can afford your product?

Economic considerations:

• Are there any restrictions placed upon foreign companies doing business in that country?
• Is the currency stable?
• What are the general economic conditions of the country? Are the majority of citizens living in poverty?
• What is the state of that country's infrastructure? (i.e. power, transportation, telecommunications, etc.) Will this affect your export venture?
• What are the major industries of this country? What are the main imports and exports? Who are their main trading partners?

Political considerations:

• Is this country prone to frequent changes in government?
• Which countries are political allies? Does this country have good relations with it's neighbouring countries?
• Is there a history of civil unrest, terrorism or labour strikes in the country?
• Is the government receptive to foreign business, or are there a number of barriers (duties, taxes, quotas, etc.) in place to make it difficult for foreign companies to do business in this country?

Cultural considerations:

• Does the business culture differ greatly from your own? In what ways? Will you be able to adapt to it or will you hire someone to act on your behalf?
• Are foreigners welcomed, or greeted with suspicion?
• Would your product or service or the name of your product or service be considered offensive in that culture?
• Do you know someone who is familiar with that language and culture who can guide you through the subtleties not always found in books?
• Do you know the language of the country? Does one of your employees? If not, are you prepared to hire a translator?

Country Research and Company Links

Now that you know what you're looking for, it's time to take an in-depth look at those markets you want to target. You can research each country in detail using the following sites:

Central Intelligence Agency World Factbook

Create Your Own Customized Market Report International Market Research & Country Commercial Guides

Global Export Forecast (in PDF format)
prepared by the Export Development Corporation EXPORT Market Insight

International Business Resources on the WWW  GlobalEDGE

International Market Research & Country Commercial Guides

Trade Data Online provides import and export statistics from around the world.

World Market Reports prepared by the Canadian Trade Commissioner Service  About the Trade Commissioner Service

World Regional Trade Statistical Analysis  

Worldwide Business Briefings  offers country reports covering international business practices, cross-cultural communication, negotiating, international etiquette and more.

Where can you find information on other companies?  Check the following link :

Canadian Importers Database  

Library Resources for Identifying Foreign Markets

• Books/Directories
  The Do's and Taboo's of International Trade
  Encyclopaedia of Cultures and Daily Life
  Culturgrams: The Nations Around Us
  Exporter's Encyclopaedia
  Incoterms 2000
  The International Directory of Importers
  The Portable Encyclopaedia for Doing Business with Hong Kong, United States, Mexico, Taiwan, Korea, Japan
  Worldmark Encyclopaedia of the Nations World Leaders
  Worldmark Encyclopaedia of the States
  
• Video's
  Going Global
  Exporting Services to the United States
  Trade Show Gold: a guide to international exhibiting
  Doing Business in Mexico/Chile/Brazil/Argentina
  Doing Business in Southeast Asia Singapore/Indonesia/Malaysia
  International Negotiating
  
• Databases
  Business & Company Resource Centre - BCRC
  Stat-USA (formerly The National Trade Data Bank)
  U.S. Census Bureau
  Worldmark Yearbook
  U.S. Industry Studies
• Other Sources of Information
  Business Associations (i.e.. Manufacturers and Exporters Canada)
  Bilateral Business Councils (i.e.. Canada-Korea Business Council)
  Intermediaries (i.e.. foreign distributors)

The Canada-Saskatchewan Business Service Centre
Canada-Saskatchewan Business Service Centre resource library offers an extensive collection of trade related materials, from export rules/regulations to demographics on countries around the world. The search engine can be viewed at the following address: http://www.cbsc.org/sask Once you have located a particular resource you think might be useful, please contact us at the CSBSC office and we will discuss the material with you.

For further information regarding exporting, see the document  Exporting Info-Guide, visit the Trade and Export section on our Web site  Canada-Saskatchewan Business Service Centre or contact the

Canada-Saskatchewan Business Service Centre
#2 - 345 3^rd Avenue South
Saskatoon, Saskatchewan
S7K 1M6
Phone:(306) 956-2323
Toll-Free: 1-800-667-4374
E-mail: saskatchewan@cbsc.ic.gc.ca
Web site: http://www.cbsc.org/sask

Prepared by: Canada/Manitoba Business Service Centre