Trading Partner

Trading Partner Country



Are you looking for countries where export and/or import runs smoothly and effort as well as costs and risks are low?

 

World Trade Routes
World Trade Routes

The Elcando GmbH identifies the countries for your company with

  • minimal trading risk and
  • minimal trading costs.

and classifies them according to their risks and costs.

 

The result is

  •      a ranking,
  •      understandable for everyone and
  •      immediately applicable.

 

Example: Suitable Export Countries for a Company from The Gambia

 

A successful company from The Gambia wanted to expand internationally at low risk and at low cost. However, the management was unsure of which countries to focus on. The company therefore had a Trading Partner Country analysis carried out for a selection of countries as the basis for the further business strategy.

 

step 1 - selection of countries

 

The management of the Gambian company selected seven countries for the analysis:

 

Germany, United Kingdom, Belgium, Sweden, United Arab Emirates (UAE), India and the USA.

 

Step 2 - TRading Partner Country Analysis to eliminate risks and costs

Trade-Risk-Index for The Gambia (Data Source: Worldbank)
Trade-Risk-Index for The Gambia (Data Source: Worldbank)

 

In the second step, the Trade-Risk-Index was calculated. For this purpose, a risk score for trade with the Gambia was determined for each country. Now the selected countries could be put in a clear order (see figure).

 

The most advantageous from a cost and risk perspective is trade between the Gambia and India. Here, about 1.75 times the production costs are to be recognized as long-term trading costs. The UAE and Great Britain are roughly equal in second and third place. The trading costs here are a good double of the production costs. Trade between the Gambia and Germany has the highest risk score. Here the trading costs amount to almost 5 times the production costs.

 

 

After completing the Trading Partner Country Analysis,

the countries Germany, Sweden, the USA and Belgium can be clearly excluded as trading partner countries due to the high risk score.

 



Foreign trade offers great opportunities. However, international trade relations involve considerable risks and incalculable costs, too. Therefore risk minimization in international trade is essential. This applies in particular to the establishment of new trade relations.
By choosing suitable trading partner countries, you minimize costs and risks and make optimal use of the opportunities offered by import and export. Elcando calculates a risk score for each selected countries. In this way, the countries can be compared based on their risks and costs and put in a clear order. This is done through an algorithmic analysis of international databases.
The result shows at a glance in which country your company expects
the lowest costs and risks.