As you are no doubt aware, making a decision to develop your business in a foreign economy is a risky business. Getting the right team together (including your translation service providers, of course!) is one thing, but you need to have the right information to hand before you even think about starting the process.
Luckily, there’s a plethora of useful data sources out there that can help guide you on those all-important investment decisions. Nothing, least of all economics, is certain, but here are some reports that can help manage the risk.
- Exporter confidence
The confidence of other exporters like yourself can be a good gauge of an economy’s strength. The British Chambers of Commerce (BCC) publish a quarterly report on British exporter confidence, which is a good reference point to compare against. They also publish regular export guides on developed and emerging markets, key industry sectors, trade missions and events.
- Currency exchange rates
A sharp decline in the exchange rate of a currency may seem like a tempting investment, but it’s often indicative of an unstable economy that may not have the strength to offer the returns you need.
Reuters publish the exchange rates between major world economies online and update their data regularly.
- Legislative forecasts
Keep an eye on government output both in the media for rumours, and through official channels for confirmation. If in six months’ time a government plans to increase Corporation Tax, VAT, or industry regulation, then you need to have that factored into your export plans.
- Economic data
Finally, don’t forget to keep an eye on the raw figures used to measure an economy’s strength. Though often debated, the comparison of an economy’s figures on a quarterly basis can provide a rough gauge to its strength. The International Monetary Fund (IMF) publishes their quarterly GDP research, and estimates on their website.
Purchasing Managers Indexes (PMIs) can also be good indicators of a specific industry’s strength within an economy. PMI data in the US is published by the Institute for Supply Management (ISM), and similar data is available for over 30+ other countries worldwide from Markit, as part of their PMI series.
If you’re outlining your export strategy, don’t forget what an essential role language will play in the success of your new venture.
Get in touch with Bubbles Translation Services today to find out how our translation services can support your overseas expansion.