Typical Problems International Traders Face

Typical Problems International Traders Face

Venturing into international trading is never an easy thing. When you talk about bringing your business to the global stage, you speak of dealing with people from a different culture which intrinsically have a unique set of beliefs or otherwise similar to yours. Although money is a “religion” which people across the globe understand, there are some elements in international trade that make the process less simple as rooted in the disparity between legal norms.

But while legality is one thing in business, politics is not the sole reason why international business is rough for many, if not all. Yet, there are also other factors at play that makes the process of making trades more complicated than it could be.

Here are the most common problems which international traders face that add friction to their business:


Location and Transport

A business will not be considered “global” by scope if it does not go overseas. Whether it is a country next to yours or from a faraway place, an international business is always concerned on a few critical areas, namely the geography and the transport of goods towards the location.

But although there are now a handful of means by which the goods are safely transported from one destination to the next wherever in the globe, there are also underlying issues in this matter that is truly a concern to the exporter, like the prevailing norm to the target locations and the risk of losing the cargo at any point in the delivery process.

To offset these latent problems, it is always wise to make due research to learn about your new target market and adjust your business plan accordingly while also making sure that your goods are insured in whatever troubles it may face, either on sea or on air.

Payment Process

When dealing with customers from far-flung places, having the right method of conducting financial transactions is very important. By tapping with today’s available technology, cashless payments should already be at the core of your business.

Considering that each country has its own currency and whose value may be more or less than others, digital transactions make for a boon in international business where easy conversions are made without fault.

Language Barrier

In business, trust is everything. But trust is that fickle thing that is not easily formed, especially between two people who speak two different languages. Although many people nowadays have grown accustomed to speaking English as a vernacular in business, that is mostly in the formal sense and may not necessarily apply at the local scene. If you want to foster trust with your target market, you must learn how to communicate using their language.


The Right Importer to Deal Business With

The process of exporting products to another country is not a one-way thing where you, as an exporter, just simply send out goods to an intended country and it will just be received by whoever and let its distribution go to the market. It does not really work that way.

When there is an exporter—which is you, for example—there also has to be an importer, too, who basically handles the goods you sent for sales and distribution.

Yet, while it may sound so simple, finding the right person to do proper business with you is not always easy. In any undergoing which involves money, there are potential scammers who are dishonest enough to take away money from other people. Otherwise, they may simply be ineffective in the trade they ought to be doing.

Related Stories


  1. Arjay Solitario

    If you want your business to succeed globally, you as a manager as well as your team needs to be prepared to handle the task. The structure of your organization and the location of your teams is critical to understanding the type of business process you have.

    One example I can cite is Coca-Cola, it is one of the most notable multinational business structure to look to. The company is run into different continent-level groups, each with a President as their leader so that there will be no communication barrier. The country- or state-based leaders are managed by the central presidency and this is to make sure that the quality is managed centrally.

    However, Coca-Cola adapts to the culture of the country even with their advertisements that they promote the Filipino culture so that they can get the loyalty of the Filipinos.

  2. Iche Calates

    One of the typical problems also is the conversion of currency. Doing international trades is very difficult especially when it comes to the financial statement of the company. The bank reconciliation will be more difficult it seems because of the different currencies all over the world. Also, you need to consider how the tax works in other countries, how they treat or compute the tax or the discount. This would be more complicated, because the money topic itself is already a complicated issue. This is why before going globally, there should be a contract for who should be handling this fee and that fee. Preparing a financial report locally is not easy, how much more if the revenue and expenses are global?

    Also, one of the problems I think is the third party of the business. I mean, the outsource products or manpower of the company. For instance, when you have a partnership with some delivery company. Their failure could be your failure too. If they are not handling your items carefully, the satisfaction of the customers will be affected. Even if the delivery company will be the one to refund, you will lose one client.

  3. Bea Berio

    International trading involves a great deal of risk. Conducting business overseas for the first time requires a lot of research and planning. Initially, it is difficult to develop a close relationship with other parties in different countries because of the distance. Most likely, traders will only meet virtually through email or other communication tools if not through web conferencing. It is difficult to entrust someone you haven’t personally met with your products or investment. Just like what the blog mentioned above, there are risks involved such as the shipment being lost at any time and potential fraudsters. It is important to find trustworthy and credible service providers so that the company/trader is protected and secured. Therefore, extensive research and business planning is essential. This process assists in the selection of service providers such as importer, exporter, cargo, insurance, etc. Local connections or groups with experience in trading can also mentor and help with the decision making.

  4. Engage in International business is not easy. Encounter a lot of challenges between traders, especially distance from one country to the other. Close contact with each other is difficult and impossible to meet always (buyer and seller). Different languages can be one of the barriers to a business arrangement. Some country uses their original dialect which needs an interpreter to understand and to close the deal. Risk in transit where goods are delivered over a long distance. Documentation and payments, due to these different currencies need median in order to facilitate. Market changes can be also one of the problems. Business owner should prepare their selves in order to be internationally successful. Good luck to the business owner in their global endeavor.

  5. Like previously stated, economic globalization is never easy since it necessitates a high level of trust, the appropriate choice of person with whom to conduct business, the tolerance to await, and the guts to take a risk. The technological era is currently booming, and new modes of product transportation and paperless payment are emerging, but we have yet to face and realize the ongoing trend of development. To remedy this, a cooperative project between the local authorities and public entrepreneurs should launched to update their business methods and introduce an inventive trend into their goods.

  6. Apollo Jose Ocillada

    The following are the most common issues that can arise when conducting international trade:
    1. Distance: Due to the large distances between countries, it is difficult for traders to establish close trade contacts. The rare occurrence of both buyers and sellers getting together means that personal connection is scarce. There is a significant time lag between placing an order and receiving goods from other countries. Distance raises transportation costs and increases risks.
    2. Different languages: Different countries speak and write in different languages: foreign language price lists and created catalogs, and must advertisements written in a foreign language.
    A trader who wishes to buy or sell goods in another country must either know the foreign language or hire someone who does.
    3. Difficulties with transportation and communication: Dispatching and receiving goods takes longer and costs more money. During times of war and natural disasters, goods transportation becomes even more difficult. Additionally, sending or receiving information is expensive and prohibitively costly.
    4. Transit risk: Foreign trade is much riskier than domestic trade. Goods must be transported long distances and are subject to the hazards of the sea. These risks are covered by marine insurance, which raises the cost of goods.
    5. Special measures are necessary to increase the quality of information about foreign people in business because there is no direct and close relationship between buyers and sellers. It isn’t easy to obtain reliable information about foreign traders’ financial positions and business standing. As a result, credit risk is high.
    6. Credit risk is high because each country imposes import and export restrictions to protect their domestic industries. Similarly, tariffs are imposed on raw material exports. Importers and exporters must pay taxes.
    7. Documentation: For both exporter’s and importers’ work, various documents need to be prepared, both of which take time and money.
    8. Foreign market research: Each foreign market has its unique characteristics. This has the specifics of requirements, practices, weights, measures, and the regularity of marketing. Foreign trade success requires a strong presence in foreign markets. It is challenging to obtain accurate and up-to-date information on foreign markets.
    9. Payment issues: Each country has its currency, and the rate at which it can exchange for one money for another (known as the exchange rate) fluctuates. In the event of a change in the exchange rate, there is an additional risk.
    Money remittance for payments in foreign trade takes a long time and costs a lot of money. If goods are dispatched, but payment isn’t received in a reasonable time, there is a greater risk of bad debts.
    10. Frequent market changes: Demand and supply conditions in other countries are difficult to predict. The price of goods and services can swing significantly in international markets. Changes in consumer preferences, changes in tariff and freight rates, currency fluctuations, and new competitors entering the market all occur when new competitors enter the market.

  7. Gracelyn Mae G. Nico

    Global marketing is a little bit complicated compared to local marketing. The environment of global marketing presents a couple of problems and variability. As the world move along in terms of information technology, innovation and better methods of classifying marketing efforts, global marketing is still not easy to pursue. That is why it has become a challenge for every growing business who decides taking into global expansion to accept and conquer.

    Aside from what was discussed in this article, another problem faced by international traders is political instability or environment. Every country has different political systems like democracy or dictatorship and they have different economic systems. Political atmospheres in different places either gives opportunities or turns out to be a challenge on international marketers.

    Government in every countries have their philosophies, procedures and priorities to the international trade. They usually adopt with liberal or restrictive approach on their international business operations. Long-term trend of global political environment is uncertain and unpredictable. Extreme change in these policies will create constant difficulties to international traders. When dealing with international markets, we should give special attention to international political and legal environment.

  8. Jen Benoman

    Business trends, partnership, culture, beliefs, politics, law imposed by other countries can also be additional challenges that international traders may face. Knowing these challenges would help them create a strategic plan to mitigate the risk and/or address all those challenges. It’s not always an easy thing but with precaution can lead you to a successful international business trade.

  9. Jen Benoman

    Business trends, partnership, culture, beliefs, politics, law imposed by other countries can also be additional challenges that international traders may face. Knowing these challenges would help them create a strategic plan to mitigate the risk and/or even mitigate the risk of doing it. It’s not always an easy thing but with precaution can lead you to a successful international business trade.

  10. Kevene Anthony M. Ting

    Doing business on the global stage is not that easy. Some problems arise along the way, but there are also common ones that we can have more control over. The first is about the location and transport. The difficulty of these is that there are a set of norms and guidelines in other areas going to the recipient which we are not familiar with and there is a tendency that something unexpected happens to the ones we shipped along the way. The best way to deal with this is to research our target market and make sure that we sent our exports to the trusted cargo partners. If we are new to exporting, we should try searching online about cargo companies that can help us and make sure it’s legit. The risk here belongs to the part of the exporter especially if the mode of payment is cash on delivery. I would rather choose expensive cargo companies for as long as they can assure me that the recipient will receive the package in good condition than to risk with cheaper ones but has a higher probability of losing or being damaged along the way and besides, the shipping fee will be shouldered by the client. Cashless transactions are also becoming a trend in our daily lives. A problem with the payment process is the exchange rate which is unpredictable due to increases or decreases. The payment rate can be decided in two ways, depending on the agreement between the importer and the exporter. It can be the exchange rate based on a specific prior date from the delivery or the exchange rate on the date the importer receives the goods. The exporter should learn the native language of the target market for easy communication and avoidance of confusion. If our target markets will like our product, they may also refer it to their friends who speak the same native language so it will be easier on our part in building a new relationship to a bigger market. We need to make sure that we partnered with the right importer to deal business with and be careful at all times. Since money is involved, make sure that you transact with the right ones to avoid conflicts between you and the importer and never let these scammers take away money from other people.
    All our moves should be well thought out and executed in the most secure way possible. Aside from the problems mentioned in the blog, we also need to consider the government and political factors of each country, just like the payments of tariffs and other laws about the exchanges of goods so that we are aware of the variations and we can plan out better solutions the next time we transact business. The cultural factors may also be a common problem, but I guess this is the easiest way to deal with because this can be solved by proper communication, respect and sensitivity from all parties involved. This blog is very helpful in guiding those future businessmen who plan to market on the global stage, because the contents are up-to-date and very applicable in the real business world.

  11. Izza Arcenas

    Entering the global trading is challenging and fulfilling when you succeed. There are challenges in the international trade first is your source of logistics, you should find a company who is trustworthy in safekeeping your product when you try to export. Next is, the government you should be adaptive to the laws and regulations set by the country if there is something not allowed that is correlative to your product you should change it to have it approved by the country you’re trading to. Also, there are a lot of requirements you as a businessman should accomplish, going international should be planned before, during and after entering the trade.

  12. Leddielyn C. Tomayao

    Going global is big, and it has also big challenges. In addition to the above problems, traders need also to look into the impact of currency exchange or inflation. Global business is not always stable and constant, it is most often shows a static rise and fall of your business performance and this is because the currency exchange changes every second of the day, brought about by various factors. As a businessman, you must be ready to have a little extension on your belt to adjust to these challenges. Policy change is another one. Minor revision of some countries’ policies may mean a major effect on one’s business. Like for example, if one country raises its tax on import goods all of a sudden without prior notice, and you already dealt your goods at a lower price. If you have a branch outside the country, managing those teams there might also be challenging. Your control is limited, the only thing to do is to have somebody overseas that you can fully trust.

  13. Rachelle Beth M. Balansag

    One of my business goals is to import goods from Alibaba. This article is really important especially for someone like me who dreams of importing goods internationally. True, location and transport are very critical. There are established cargo companies but it cant be denied that they’re are several cases and issues that importers are facing. How about if I lose my goods? Are there any insurance? Can I afford to lost the value of those goods? How will it affect my business? When it comes to suppliers, how sure am I that they are reliable and the materials are the same as the pictures and description states. How are payments processed? Most of all, who is the right importer I’ll have partnership with? What are the risks and benefits? Thanks for this article for the heads up! Now, I’ll begin searching for answers to these questions and solutions to these problems. More power.

  14. Zandra I. Garagara

    Aside from the problems mentioned, the another problem of international traders is intense competition. Different country has different preferences and marketing strategy to attract customer. One company may be famous form its own country but have a difficulty of competing to other country due to local products that they have. Enable to compete globally, business need to study its market on how to compete with other business. It may costly since its need more marketing research, advertisement, promotion and marketing to attract consumer. You need also to compete on how to adapt culture differences and belief, language barrier and laws of such country.

  15. Kris Laica M. Artos

    Aside from the problems mentioned above, in my own opinion one of the factor that can affects international traders is the world wide environmental issues. They need to consider their methods on how they produce their products that might have big impact to the environment through waste and pollution. They need to be eco-friendly and establishing environmentally conscious business practice to attract new consumers.

  16. Marife R. Beldia

    My comment may seem a bit too late yet I would like to share mine on the topic. Aside from the problems mentioned, I think another concern that international businesses face is on TARIFFS. The ever changing market trends, political instability and trade war between first world countries may seem to be a challenge to international business.

    Business leaders are aware that tariffs may vary depending on the country they are exporting or importing. However, local producers are also key players in the local economy that’s why government may impose higher tariff on imports.

  17. As mentioned in this articlen, location and transport, payment process, language barrier and the right importer tobdral with business are some of the problems that international teaders are facing. I think another problem in trading globally is the frenquent market changes, where traders cannot anticipate that in demand and supply of the product abroad.prices may change uncontrollably, either it may decrease in order to compete in the market wit low margin or evwn break even. There are factors why changes may happen duebto the new competitors, buyers preferences,changes in import duties and freighy and the changes in rates. These are, have an impact when it comes to cost of business.

  18. Jarvis Ames Suyo

    Apart from problems mentioned, I’d like to add Customs Duties as another problem faced by international traders. While it’s meant to protect the domestic industry by controlling the inflow of imported goods, import duties tend to give advantage an advantage to locally grown products as higher taxes and tariffs are imposed on imported goods, it becomes a big problem when you are the exporter as how to make your product’s prices competitive and profitable.

    Tariffs can dictate the success of an import business, an example is the Sugar Industry of Negros during 1913 to 1934, Philippines exported sugar to USA, tariff free, which helped the Negrosanon and Philippine economy in a big way. This lasted until the 70s before big tariffs were imposed by USA and martial law happened. Although Negros is still considered to be the “Sugarbowl of the Philippines “, it has faced problems that made it less globally competitive. Decline on tariffs imposed by the Philippines on cheaper imported sugar, and higher costs in production of local sugar has placed the sugar industry of Negros at a disadvantage. It is within the LGU of Negros finds ways to endorse new products other than sugar to the global market.

    I think the businesses here in Negros can offer high quality products that are globally competitive. Negros is an exporter of high quality delicacies, dried fish and fermented products to other countries. Negros is also exporting tropical fruits such as mangoes, avocados, bananas, pineapples to USA, Europe, and Canada. More importantly, we have skilled artists and designers such as Jojo Vito here in Negros, that can create clothes and fashion accessories, and housewares made from indigenous materials that are sure trendy to global market.

    It would be great if we can exploit the resources that we currently have, businesses here in Negros are globally competitive but if we want to bring it to the global market, a strategy has to be implemented to know the risks involved in exporting products and help create a solution, and create a back up plan for unfavorable circumstances. It’s also important to know the profile of the target destination of exported products because every location is a different market with different culture. Profiling the social economic status is important to know what and how products are to be distributed.

    Surely our filipino culture of adaptability can help us do business globally. We are known to be adaptive to what is given to us and what is expected of us. This can positively translate in doing business with international markets. Our willingness to adapt to the demands of foreign markets gives the assurance that we can conform to their level of standard, give them the product and service they are asking, and this bodes well for us where in global market, customers are considered king.

  19. Joseph C. Gubat

    Human Resource or manpower represents the business. They serve as frontliners of the company and plays a major role in the success of an organization. Thus, one consideration is to ensure effective selection process of these repesentatives when dealing business in the global market. Failure to execute the process would mean higher risks on the company which may lead to poor manpower performance resulting to a negative growth.

  20. Jerald Maglantay

    With what I have observed over the last decade, one of the problems faced by traders is the import and export restrictions imposed by a certain country. A sequence of tariffs, quotas, and subsidies can serve economic, and sometimes political, purposes, but they can also impose remarkable costs. These restrictions may discourage a lot of traders to do business in a certain country.

  21. Louie Canlas

    Aside from the problems mentioned in the article, I believe another problem faced by International traders would be Cultural differences. As we all know each country have their own unique culture that dictates how people live and do things. In International trade it can cause a problem because it leads to misunderstanding, giving up once culture and belief to adhere with the trading process and how each country can meet halfway to make sure that they will be able to stay true to their culture but at the same time following the guidelines in the international trade process.

  22. Mark Jayson Torres

    I strongly believed that behind of a successful business has a hidden strengthened leader. A leader who is willing to inspire and motivate its members to perform well at their fullest not just for the benefit of their employer, nor for themselves as career person but for the betterment of their community that they are leaving. Aside from the above mentioned common problem in international traders, we should not also forget this basic element in putting up a business. One major reason for the failure of any business is lack of leadership, which is driven by mission, vision passion and purpose. These kind of leaders (owners) are able to transform people’s lives not just motivated by paying them money regularly for the labor an service they rendered. But by the same mission, vision, goals and objectives as that of a leader. With right leadership, it will enliven the people to bring out the best of their potentials and harnessing their skills from them for the progress and growth of the business entity locally and internationally.

  23. Vanessa Arcenas

    Politics, conflict of interest, culture and beliefs can also be considered as challenges in global trading. Each nation has its own government that do not only represent the entirety’s mutual interests but also reinforce law that can greatly affect one’s product.

  24. Rebecca Sales-Cabigo

    Sustainability of the product is one thing to consider in International traders aside from the problems mentioned. It is because as a third world countries, we are not that rich in financial aspects and lack support from the government, and another is the calamities that might happened along the way. We are suffering by the hit of many typhoon every year in different places and as a result, products may be affected. And so, we cannot sustain the the demands of other countries add on also the facilities or technologies that we need to make it faster in the production.

  25. Dhevie Salazar

    Another problem global trading may encounter is fraudulent activities such as counterfeiting products. Once a product is widely distributed, stolen intellectual property is inevitable that could lead to counterfeited goods. When ideas or designs of a certain item is obtained, its fraudulent usage can be endless. Usually, it’s use for counterfeiting products that were sold at a cheaper price and lower quality. Manufacturing of branded name products has increase the number of intellectual property thefts around the globe.

  26. Dhevie Salazar

    Another problem trading may encounter is fraudulent activities such as counterfeiting products. Once product is widely distributed, stolen intellectual property is inevitable that could somehow lead to counterfeit goods. When ideas or designs of a certain item is obtained, its fraudulent usage can be endless. Usually, it’s use for counterfeiting products that were sold at a cheaper price and lower quality. Manufacturing of branded name products has increase number of intellectual property thefts around the globe.
    Negros Island has variety of products that has the potential to compete in global level. With the help of digital innovation, it will be easier for Negros traders to take a leap towards growth and expansion in the international market.
    Going global is no easy task. It takes a lot of intensive planning to tackle the risks that the business might encounter in the future. Technology made global trading convenient and increase the capacity of Negros traders to bring their products in the international arena. Nowadays, applications were developed and programmed to trade products and services online. With the use of internet it’s way easier for Negros businesses to extend their market globally.
    Filipinos are well-known for our hospitable traits. Hospitality is long part of our culture. Providing our customers a pleasant experience with our products and services increases customer retention rate. It also encourages higher positive reviews that could attract future customers.

  27. Shanelle Anne Machan

    A nation’s cultural and social forces can restrict international business. In my own opinion, by ignoring the cultural differences can result in weak market share, negative or low return on investment (roi) and missed opportunities. Selling products from a country to the other is sometimes difficult especially when the culture of both countries aren’t similar there will be misunderstandings, tensions and biases caused by the cultural differences. Also, cultural and social barriers doesn’t only occur at the customer interface there should be an understanding between countries and appreciation on how the business is done in a foreign market including their economic, cultural and political influences.

  28. Ryeo Venn Abellanida

    The list of problems in this article are all true but may I add the support of the Government? It is a fact that Filipino products are of import-quality. Filipinos are good at many things that can compete globally. Unfortunately, we are restricted to access especially in the transport of shipment, technological advancement/automation, and most of all the process of documentation/permits. The lack of these increases the cost of our products thus making it unfavorable to importers are well.

    It is no doubt that our country tops the chart in corruption in which making business or expanding business internationally are restricted. Most businesses that strive internationally are those with government connections. Even in the local setting, corruption is very evident and in plain sight. I do hope that the government’s projects will support the Filipino Business man in the coming years.

  29. Another problem that can arise is producing the right product to import also because if we are going to expand business globally we should choose the correct suppliers for the product who could supply us with the best price and quality of
    our end product we can produce to our consumers as well. Also, another problem of trading internationally is the extent of advertisement or marketing we can create globally as a business man we need to be very vigilant on how we can catch the attention of our target market. Trading internationally may be hard but we can do it with 101% teamwork and hardwork will just pay off.

  30. Shernie Gelera

    International traders have gone too far in the field of importing and exporting quality products to different parts of the world. Yes, it’s true, venturing into international trade is never an easy thing because risks are inevitabl, threats are everywhere that trader must be aware of. It is hard to compete globally, yes, location, transport, payment process, language barrier and the right importer to deal with are the concerns of the many. Products that are competing globally must be a quality, unique and essential to the need of the consumer’s, location and transport are also essential in dealing with far-flung areas and the payment process like c.o.d. is convenient to a consumer like me to secure that i am not in scam but can be a challenge to the business for they might not be trusting the right person.
    To surpass quality and demand of the consumers, trades must observe culture practices and traditions, product demands must be in line to the consumer’s standards and product quality when reach to destination must still on it’s shape and expectation.
    Therefore aside from the said typical problems that international traders faced, culture and tradition for me can be considered in this view, for not all products that are made can be exported anywhere in just a glimpse because some other countries or culture have banning a particular goods

  31. Roland Feb Penas

    One problem that international traders face is on how to compete in terms of prices with the locally produce products of the host country. There are a lot of areas to consider, such as expenses made for freight charges, taxes and tariff. Any one of these mentioned factors can make your product more costly.

  32. Roland Feb Penas

    One problem that international traders face is on how to compete in terms of prices with the locally produce products of the host country. There are a lot of areas to consider, such as expenses made for freight charges, taxes and tariff. Any one of these mentioned factors can, no matter how it is appraised makes a product more costly.

  33. Angel Mae Carlson

    Aside from the problems mentioned in this article, I think another critical issue involved are trade barriers like tariffs. Competing globally or internationally also comes with a price. Other countries charge tariffs for products from other countries. This can cause an additional cost to the businesses and can lead to an increase as well in the products selling price. More often that not, countries have tariffs to protect local products from foreign competition. Therefore, if you want to compete globally you need to be careful in considering where you will expand your operations and make sure that your product or service has an advantage among the other competitors. So that, you can still gain from extending your business to the global market.

  34. April Rose J. Balongo

    Another problem traders face is the governing laws and regulation of the foreign country. Any business person should consider these when planning to venture its business into the global market. Just like in our country, business individual should secure necessary permits and other business related documents first before it can start operate the business. It’s a process of making the business legal. And I believe that this process applies also to other countries. Business individual should know the existing laws and regulation of the foreign country that they want to do business with and ensure that they abide with it to avoid problems. They made do some research or consult an expert for any legal advice if not familiar with the countries laws and regulation. The one that we used in our country might not be the same and applicable to other countries. For example, business tax. Every country differs in collecting business tax.

  35. Rennie T. Craus

    In order for a business venture to have a larger scale of market it should not just operate as to where it originates, they need also to try their luck outside their zone or country. Through times it was never that easy, things might go wrong if you will not be able to cope with the trend and encounter problems and in identifying these problems will aid you to overcome it and provide a useful strategy to survive. This content is very useful for as an MBA student to further enhance our understanding in trading internationally. Most of us are affiliated with businesses engaged only in local trade this will help us fully grasp the problems that our employers or we as entrepreneurs in the future may face.

    Aside from the given problems stated in this article one of the problems that you may encounter is how to remain as TOP EXPORTER amidst varied competitors around the globe. You may be able to operate successfully but in the long run will you be able to withstand with your close competitors? In terms of products/Materials you have, are these still be appealing to other traders you intend to do business with? will you still be the priority of your business partners? Therefore, to be able to sustain in the game you have to be certain that your products will continually adapt with the changes in demand of the economy. A lot of factors may change the demand of your partners and remaining as top exporter poses a challenge in the future. I agree in the article that explicitly divulged that it is not enough to just transport your products to importers, it is not that easy as what we think, underlying problems must also be considered and addressed.

  36. Vem Lorraine Fernandez

    I’m certain that there are a lot of problems international traders are facing than I could ever know and I believe that one other issue they could encounter relates to the political decisions and legal requirements of the government of the countries they are trading with. Requirements to be complied in another country may not be the same as of the other. There are also political decisions that could affect the country’s economic status in just a matter of time. Change is constant and is always considered in every businesses but by constant, it does not tell us that it will come after a year or two- it could come sooner than that and all we do is adjust. Political relationships made by our country with the other countries will increase or decrease our value and trust and this will definitely be in consideration to every trade internationally. These government declarations does not just affect the international exporters but also be a concern to our own exporting industry.
    Politics and governance of our country will matter to our business decisions wether we may be giant ones or SMEs, importing or exporting.

  37. Alvin Ivar Bandiola

    I believe that one of the problems businesses are dealing with in an international trade is the constant changes in the market. Demand of goods defer from time to time and from one country to another. and because technology is fast growing, innovations and upgrades is a must. For example, cellphones, almost every month upgrades are available. So if you cannot innovate and update you cannot provide for the demands of the market the you will loose from you competition. These goes to most of the products trading internationally.

  38. Genie Mae D. Panzo

    Mentioned above are the various problems face by the Exporters, another problem that may add is the Intense Competition and Frequent market changes. Intense Competition because traders must accept the fact that other countries also exporting. Traders should consider market research to ensure the product suitability in the foreign market. Frequent Market Changes because prices in the international market change often such as maybe there is new competitor, also the change in buyers preferences, freight rates and lastly exchange rates can happen anytime.

  39. Renato T. Vingno

    Another problem of International Traders face is the Religion and Beliefs of the people. I consider this as a problem because in dealing business local or International the religion of the people affects the business . Their are religious denomination that you cannot have transactions during the day of their sabbath or worship. They stop all business in that particular day of rest. But, by learning and doing respect of these people religion may result a close relation and better understanding. It may be increase in demand and open to new markets.

  40. Nineth D. Cuadernal

    1. Since every nation has its distinct rules over its patterm of governing its trade/business , I think the difficulty of preparing the documents in transacting the trade is one of the typical problems that should be given attention to. Different rules, customs and cultural adversities would require a different form of documents making it completely different from that of another country. As an international trader whether an importer/exporter you have to know the depths of the documents needed to comply so that your business venture becomes successful. This would also mean an additional costs when you prepare different forms of documents as you engage in international trade. That is why, it is important for traders to do research beforehand so that documents will be complied on time and business will not be hampered.

  41. Hazel Love Y. Baya

    Doing business internationally opens a lot of opportunities and risks. It exposes you to a global market that has a variety of cultures and policies. It will enable you to learn and adapt to various practices that other countries have. On the other hand, it also reveals some risks that can threaten your business. Every country has it’s own unique selling and buying style. If one is planning of doing business abroad, he/she should be keen enough to observe first the buying behavior of its target market. But if the business is not willing to adjust to the attitude of the market, it will cause a problem to the business. As people conform easily to the trends of society they’re in, the business should also be innovative with the latest trends. Because if you will only stay in your comfort zone, you will be left behind by your competitors.

  42. Marie Bernadette F. Maquiling

    I also consider the value of foreign money as a challenge in international trade. When business expands on a global level it involves investment for operations across countries in their local currencies for logistics, retailing or manufacturing and compliance. As the products enter different markets, the prices vary accordingly to survive in the market. The investment of the business will be exposed to the risk of fluctuating exchanges which requires close monitoring and vigilance on the economic condition of foreign markets. Particularly if the foreign exchanges involves multiple conversion of currencies. If global markets are entered without proper study it could result to losses and discontinuance in worst cases. On the other hand, if handled properly, foreign currency transactions may be used to gain profit not only on the earnings from primary business operations but as investments as well.

  43. Joey L. Yane

    Q: Apart from the problems mentioned in the article, give another 1 problem. Explain your answer.

    A: People satisfaction in business industry grows each day, and that is probably the reason behind that businessman are taking their products outside the country to gain more profit and be known throughout the world, but its not that easy I should say. You have to pass on the government regulations and policies, which as of the moment, its intricate, repetitive and even conflicting procedures on government agencies involve in trading like processing on permits, licensing, entry approval which gives negative impressions on foreign investors. If the government provides solution in these concerns, there will be a lot of investors coming to our country to do business.

  44. Jijie B. Torrion

    Another problem traders face is Different cultures and practices of the target market. To be able to compete globally, one must have enough knowledge of their culture and practices. This enables you to determine the kind of product that would suffice the need and wants of your market. Also, if you know and respect the country’s tradition, then you have a high rate of success in the market.

  45. Rowena Saylon

    One of the common problems the international traders face is dealing with in transit risk. Trading products to foreign countries involves an immense degree of risk a businessman may encounter. Consigning goods may take several modes of transportation for a long-distance destination. This may also cause breakage, deformities, etc. to the items which will result to the decrease or lack of value of the damaged commodities. Although there are insurances that would cover for these risks, cost of goods may increase due to the increase of expenses.


    Sugar is one of the country’s finest products that can compete globally in terms of quality ever since. The province of Negros Occidental is the top producer among the other provinces in the country and even in the whole wide world. Today, many countries surpassed the Philippines as the major producer of sugar. Maybe of political reasons that make the industry fail to maintain its momentum to the top. There is a big potential that this business will succeed in the global market if, will be manage very well. First, identify the target market location where the products is more advantage. Second, study the area its culture and tradition, political background, prevailing price, marketing approach in order to formulate business strategy that is compatible with the environment. Look for a committed, competent and responsible local business partner who will handle the marketing business in the area. Third, financial expert that will documents and assess the status of business in the area. This stage will give signal whether the business is growing or dying. This is what we call evaluation of marketing status, this is crucial to know if the market is growing or dying to come up with another business strategy that will fit perfectly to your products. Advertisement is considered as one of the basic strategy to promote the products sort of information drive promoting your products thru billboard, signage social media (Web page, like Facebook). Lawmakers is also considered as one factor in the success of the sugar industry business thru the legislation or passing a bill that soon will become a law that will protect the interest of the industry as well as the government. Like access to direct transportation of products from the province of Negros Occidental to any part of the world, to lessen the taxes in order lower down the market selling price. Maintain and continue good practices and continuously improve the product quality and high level customer services to achieve high level customer satisfaction.

  47. Justin Myko G. Agpangan

    In addition to the aforementioned problems, I think the government plays a crucial role too in monitoring the exports and imports of its jurisdiction. Due to its role, it could impose problems to international traders by restricting the imported goods received from international traders so as to protect the products that the country is selling. Also, there are custom taxes and duties that might affect the quantity imported and exported by international traders. It could drastically affect the selling prices because of taxes imposed on the goods.

  48. Henry L. Umadhay

    Frequent Market Changes
    Other problem International traders face is the frequent market changes or market changing condition. Changes in demand and supply conditions abroad are unpredictable. The market is volatile.
    Traders should be aware of any outside developments and market conditions to be ready to respond and change the plans quickly.
    First, the traders should know their competitors,who is engaging in the same business. Who are the existing and the new players. To know or be aware of their strengths and weaknesses. Where you can improve your piece to compete
    Second, one of the major factors in the international trade is the Interest and exchange rates.Which have an influence on the general trading climate and specifically on the direct costs. That is why it is advise for traders to have a lock-in agreement for a period of time,a specific rate or other financing terms. Interest rate may affect certain industries more than others and at different times,and foreign exchange rates easily affect business with another country.
    Third, market condition may change due to new technologies and innovations that could increase or reduce the demand for your existing product or service.
    At some point all businesses experience changes in the general sales environment. Changes such as recession or economic downturn could affect the entire economy or they might only affect a specific industry or sector. It is important to be alert to possible market changes and amend your forecasts and plans to compensate for them in order to avoid potential cashflow problems

  49. Rhea T. Prado

    Question: Apart from the problems mentioned in the article, give another one problem and explain your answer.

    It is very much expected that a business may face various problems as they engaged in a global market. As enumerated and discussed in the article: location and transport; payment process; language barrier; and the right importer to deal business with. These were the only few of the issues which has an impact doing business internationally. Since doing business in a foreign country takes a deeper understanding of people preferences and buying characteristics. You need to employ certain experts for the chosen location, thus partnership and trust may become crucial and become an issue when it comes to this strategy. That I think could give problem internationally for traders. Business sometimes develop a multi corporation or sometimes we call it incorporation that is being link from one business to other. We do sometime feel that the more partners the greater gain we get but we are wrong. Problems arises because of conflict and self-interest and being greed to gain more and more while the other suffer. In business world this could happened and we call it conflict of interest. Decisions made in different aspect, internationally, had this a bigger barrier in which sometime it is hard to trust due to racial conflict. In this, I could say business is easy to obtain but trust is very hard in business globally.

  50. Yes it is a bad headache taking your business global.. you write so good. Keep up!

  51. Jezamie Nicolas

    Business going global means facing new challenges. A lot of threats or trials that will need to overcome in order the business to prosper or get to the top and can compete with the other businesses in abroad.
    When the company is planning to get on international dealing, we all know that there are so many aspects to consider with, like the country norms, legalities and etc.
    But on my own outlook, one of the issues Negrenses face when doing a business abroad is finding the right importer to deal business with. Because a right business importer has a significant role for the whole process of the business. As we all know scams and dishonesty is very rampant in the business industry, that’s why the company must research and find a trustworthy importer. If a company has a trustworthy business partner for sure the company can reach its goal, profit, satisfaction and success. A business partner that can take good care of the products that the company sending to their country, a partner that can help the company successful, not a partner that can give hardships and trouble in the business.
    Always build a trust and good relationship with your importer to have this win-win business connection. Because if the company select a wrong importer it can cause the company losses or might be one of the main reason that the business can’t compete with the other businesses internationally.

  52. Geiczar Ross D. Real

    Negros has been competitive since Philippines has started to develop. It has been widely known as the Sugar Capital of the Philippines due to its abundance of sugarcanes that yields high quality sugar. Sugar products are one of the major economic drivers of the province itself. Due to a major external factor – globalization – Negros Island faces a lot of challenges in these generation. Some factors are enumerated below:
    Modes of transport – Negros Island don’t have an international port where we can send directly our sugar products in the international market. Aside from the imposition of tariff and duties, the value chain added on the product continues to rise that will make the Negros sugar less competitive in the international market because sugar exports of Negros will have to go through Iloilo or Manila to be exported in the foreign market. To be able to compete in global market competently, Negros has to establish international ports wherein we can directly send our export products without creating extra value to the product.
    Shortage of workers – the emerging trends in role reversal among sugarcane workers have been steadily rising. There is a shortage of workers because some households’ prefer to work in the urban area because the salary is much more higher compared to farming income. The government should create programs that will attract people to engage in farming and implement them effectively.
    Disinterest of farmers’ heir to farming– due to globalization, convenience has been everywhere and most children of the farmers migrate in the urban area and pursue education to get their way out of poverty because they believe that farming will not be enough to suffice their daily needs. Programs about farming should be a priority since the disinterest of the children comes from the income and the standard of living in the rural areas especially those who were involve in farming activities.
    Getting the right importer – this one is really important, Negros should be dealing with the countries that needs it the most, not on those countries (Brazil, India, China, Thailand & Pakistan) who efficiently produce much more competitive sugar products.

  53. Mellany Ann F. de Asis

    Among the common problems presented, the specific issue the Negrenses needs to espouse with is the improvement in the location and transport. It is given what Good Location and well managed Transport can do to effective transfers of goods. Since, our country, Philippines, belong to an archipelago country- made up of many islands, this location and transport became a primary concern for traders in augmenting or exporting their good and services abroad. Hence, improvement in the location and transport will bring many Filipino exporters to an optimal comparative advantage and cost reduction which will led them to a significant change in their business operations and markets. Thus, I suggest that, instead of the government focusing on detoured issues like that of Sen. Trillanes and other issues that ends up not for the common good. Why not? improve the transportation system especially building bridges to connect one region to another to help lessen the inflation we Filipinos go through today by having a just cost of everything.

  54. Florencia Sumcio

    1. Given the common problems presented.
    What do you think are the specific issues Negrenses face when doing business Abroad?
    How can we address this?
    -The Department of Trade and Industry (DTI)-Negros Occidental reported that molasses and gifts/housewares are leading products exported to other countries. Exported products are greatly contributing to the economy of Negros Occidental. Negrense needs to improve the packaging particularly the design, and the type of packaging materials to be more attractive to the buyers. Because of the modern technology, even the smallest businesses can do business globally. However, doing business global bring with some challenges including culture and language barriers to shipping costs. When choosing a shipment line partner, need to do more research for the best freight forwarder, do a background check about the company if that’s a reputable company and be careful to deal with and transact only legally.


    Venturing into international business is not an easy task. If your business bringing into globally stage , you need to deal with different people with different culture as well as their religion. Since the Philippine is an Archepilago, it is made up of 7,641 islands. Since Negros island is outside the border line of our country, there are four specific problems that international traders faced: first, is the location and transportation, the payment process, language barrier, lastly is the right importer to deal business with.
    The traders must be ready for the circumstances that might comes their way, because in doing business specially abroad is very challenging because the location is very far and the transportation is very expensive. The payment process for having the right method is to conduct financial transaction is very important. Because nowadays it is difficult for us to trust anybody when it comes to money. Doing business globally is very challenging when it comes to their languages, because it is difficult for us to speak at different languages. They need to hire expert interpreter to help us to understand each other.That is why language is important to have a business globally.
    The right importer to deal business with is to know the quality of your product that you are going to import in order to make your business succeed.

  56. Louie C. Pagdato

    1. Philippines is an Archipelago which means it’s a group of islands, and Negros is one among the 7,641 islands. Negrense is well known for their good craftsmanship which leads to exporting businesses and better opportunities all over the globe. Aside from its advantage we also have to deal with the challenges and disadvantages on our part as a citizen of Negros Occidental. First thing to consider is the shipment of our goods which I think one of the most common problems we are facing right now. We have to consider the process from product acquisition to document processing, application and submission up to product selling. Since our region is way far from the capital of the Philippines (Manila City) we have to deal with the shipment of our products from local to national, although we already have direct flights from our region to international but limited only. Rates and costs for shipments now arrived. . These things create great impact not just on the price of the goods but on the efficiency, reliability and speed of service, locally and internationally. As we all know, each country have their own currencies, it is important to keep an eye on this as changes on rates is on a daily basis. As business men who export product globally, this is very crucial for us since we have to monitor the current rates on a daily basis. This is also one of the challenges we Negrosanon have to face. We have to strategize for us to survive and to avoid potential money loss and waste of funds. How can we address all of these challenges? Hard work and perseverance, Negrense is well known for their genuine strength that even smiles in times of troubles. We just have to learn the culture of other countries, study the latest trends and important factors regarding international trade. We have to learn how to approach business globally. In terms of transportation, global set up is more advance compared to us and we have to deal with it. We should be more flexible and adaptable to any changes and maximize our own resources here in Negros.


    1. Philippines is an Archipelago which means it’s a group of islands, and Negros is one among the 7,641 islands. Negrense is well known for their good craftsmanship which leads to exporting businesses and better opportunities outside all over the globe. Aside from its advantage we also have to deal with the challenges and disadvantages on our part as a citizen of Negros Occidental. First thing to consider is the shipment of our goods which I think one of the most common problems we are facing right now. We have to consider the process from product acquisition to document processing, application and submission up to product selling. Since our region is way far from the capital of the Philippines (Manila City) we have to deal with the shipment of our products from local to national, although we already have direct flights from our region to international but limited only. Rates and costs for shipments now arrived. . These things create great impact not just on the price of the goods but on the efficiency, reliability and speed of service, locally and internationally. As we all know, each country have their own currencies, it is important to keep an eye on this as changes on rates is on a daily basis. As business men who export product globally, this is very crucial for us since we have to monitor the current rates on a daily basis. This is also one of the challenges we Negrosanon have to face. We have to strategize for us to survive and to avoid potential money loss and waste of funds. How can we address all of these challenges? Hard work and perseverance, Negrense is well known for their genuine strength that even smiles in times of troubles. We just have to learn the culture of other countries, study the latest trends and important factors regarding international trade. We have to learn how to approach business globally. In terms of transportation, global set up is more advance compared to us and we have to deal with it. We should be more flexible and adaptable to any changes and maximize our own resources here in Negros.

    2. Filipinos are risk-takers, resourceful, competitive and adaptive, these traits combined with an in-depth knowledge from investing in extensive research, planning strategically, trying out different systems and methods can really be a big help in preparing to compete globally. By these traits, we are more prepared in facing the competitive world of business. In my own opinion, We Filipinos can surpass all of these challenges we are facing right now. Accepting the fact that Global businesses are more advance compared to us, we have the will to compete globally. Filipino’s are very hard working individuals which is one of the traits for the business to survive. As individuals we should be more vigilant, resourceful, creative, innovative and adaptive in this modern world. By this, it will enable us to be armed and prepared before we engage in war.
    Politics, another factor that needs time to study and understand. Different countries have different political systems. Here in the Philippines, we have different approach in terms of business agreement. Other countries have their own way of dealing with it. Government played a crucial role in expanding business globally. From the operations to technicalities. Careful assessment to political, economic growth and movement of the target country is a must. And all gathered information’s can be used as a tool identifying opportunities and threats in investing in a particular country. We should start it with in our boundaries, Government should support local business, if the local businesses are expanding and doing better with in our country, the possibility of expanding it globally is much stable. Going globally is not just like a walk-in-the-park. We will need all the help and assistance we can get, like from our government. There are a lot of programs government should consider; one example is to streamline business registrations, quick, fast and easy. By this the hassle free processing is much appreciated. Another one is to offer a diverse government-backed loan programs/financing. Expanding a business is not a joke. You should have a bigger capital or investment to wok it out. Government should also invest in Education and Training for small and medium enterprise. Product and process knowledge on how to run a business is one of the factors for a business to survive. Government should form ties with Universities and entrepreneurs and they should be considered to be part of high school curriculum. In addition, research and development should also be strengthened to continue developing strategies, products and technologies which can help improving different areas in our economy.

    3. Filipinos already proved itself in different areas globally. It may be in arts, sports and other crafts. We Filipinos believe that we can do better and compete with other countries.
    Competing globally is not an easy journey for us given the amount of resources that we have and the kind of politics existing in our country right now. In my own opinion we can survive this competitive for as long as we maintain having the right attitude. Positive attitude towards our dreams in life could be one of the factors that could move our business globally. We should believe in our selves that we can do it. We should strive harder, improve more and grow bigger and reminding us to keep our feet on the ground.
    In addition we should be more persistent and innovative which I think we Filipinos are doing now a days. Try to explore and research new trends in business economy. Go out from our comfort zone and innovate our product or services into the next level. And while we keeping an eye with competitors, it is best to always remind ourselves that the biggest competition we have is nothing but our own selves. At the end of the day it is not the one that on the top but the one that survives.

    4. We Filipinos are rich in cultures and traditions, a combination of eastern and western. Our attitude towards work and the nature of hard work is always present to us Filipinos. But why is it that we always have these challenges in surviving or competing globally?
    Our cultural difference is considered as hindrance in the global world of business. But I believe that we can do more than other countries. We should be more creative and always deliver a good attitude on what we are doing. Let us accept the fact that we Filipinos have also a the other side, the bad side, which, admit it or not, some of us possess and apply which can hinder us ineffectively competing globally. Crab mentality, where the main goal is stepping and pushing each other down for personal gain. Competition is good but we should always take in consideration our principles in life and that is to be fair and doing things in a right manner. . Doing everything to get even with others to get to the top, a true mark of a selfish individual. Procrastination or the Mañana habit. The endless belief that we always have tomorrow. What we can do now should be done today, we Filipinos have this traits which I think can affect in competing globally. Everyday is a market day for business, so we don’t wait for tomorrow to come. Lastly, Fatalism. The belief in no-matter-what-happens, come what may. We should not wait for the results to come but we should always have a plan B in the event that plan A wont work. By this, we are always prepared for whatever circumstances that may occur in our business.

  58. Nelly Jean D. Tiburcio

    Problems and challenges are everywhere, most specially in venturing a business outside the country. To start up a business outside the border line of the country or venturing international is not easy. According to the blog there are four (4) specific problem international trader faces and the following are (a) location and transportation (b) payment process (c) language barrier and (d) the right importer to deal business with. The traders must be ready in every issues and problems that might come their way when they are doing business outside the country. As a Negrense I can say in doing business abroad one of the specific issues will be facing is the location and transportation. Hence our place has no bigger Airport and Port that can directly deliver the product outside the country. The product need to transfer from one airport to another airport and may cause the delay. And sometimes we cannot predict the natural calamities that might come. It may cause to lessen the efficiency of the product delivery and sometimes during transfer can damage the quality of the product. This issue can be address if Negros will build a bigger Airport and Port that can deliver the product directly to the other country. And every country has its own language, so language barrier can be one of the issues to be face in doing business abroad. Although many people can speak English for this is consider as a Business language, but some countries cannot speak English fluently. So to address this issue we can hire an interpreter or an expert to help us communicate our business partners outside the country. A trader should be flexible and open to all the changes.

  59. Riza Mae H. Villanueva

    Trust is very important thing in any type of business opportunities. Finding the right person for the business needs trust. Moreover, fulfilling good relationships is a must for building the business. Right business means great relationships creating in it. Nowadays, it’s very hard to find the right business specifically international/abroad. You have to abide with the international laws and cultures of the country you want to put up business to. That is why, the ones that are looking are more into Word of Mouth and Social Media. Its fast and easy way to be involve in especially when building/ creating business.
    People of anywhere of the globe must apply trust in order to build relationships for a great business. As you can see, Trust = Build relationship = Great Business.
    Having a business can be fulfilling and great accomplishment for most of us. Therefore, Do it!!

  60. Vivien Elaine A. Gavieta

    For a venturer to survive and stand out in the international business arena, it has to be fit in all aspects to the standards of the global market and be able to cope with the trend of times.

    With the growing popularity of Negrenses in the field of business, being labeled as the “sugarland” and Philippines’ major sugar producer, it is not impossible that it can possess dominion in the international business realm. From Negros Occidental’s famous “piaya” to “puto bongbong” and all sweets you can name, from the rise of organic farming to emergence of BPO industries within the province, Negros has so much strength to offer.

    However, it is not exempted with the barriers that every business has to hurdle in its venture towards internationalization. First consideration is: Will the Negros businessmen and their products be able to suit the “interests” of people from all walks of life, in the whole world? Second, Do the Negrense traders possess the financial means to conduct research on the varying attitudes of the global market and be able to align their products with the given varying tastes and preferences? Third, How much would be the marketability rate of the negrense products? Does it have what it takes to have the “global market appeal” and be “preferable” than all its other global competitors? Will the import/export expenses, including the compliance efforts and costs to the legalities of every country, be worth it in the end? Lastly, with the fast changing world, is Negros ready to patch up with the technological innovation?

    If we’d go through the specific of the specifics, the list would go a long way. Nevertheless, with the Land of Sugar being consistently stable in the national economy for years, coupled with sweet and hardworking people behind its success, we would not be surprised one day if province’s famous label will be changed from “Country’s sugar capital” into “World’s land of sweets.”

  61. Ma. Carmela Joy D. Alegada

    As been presented doing international trade is never easy as they require an ample need of trust, the right choice of person to deal business with, the patience to wait and the courage to take the risk. As a Negrense there are difficulties that we may encounter as we pursue our goal of international trading. The era of technology is flourishing right now and the ways and means of product transport and cashless payment arises but we are yet to face and realize this continuing process of urbanization. Negros is a province that has a rich heritage and natural resources but we are not yet ready to go urban since we still have cities and municipalities that are still stuck with the rural living and with that doing international trade can’t be realized. In order to address this there should be a joint initiative with the local government and those local entrepreneurs to update their means and ways in doing business and inject an innovative trend in their products. We can’t be just stuck with the old ways, we need to step up and be aware of the current trends in order to compete globally.

  62. Geiczar Ross D. Real

    Negrenses rely to the ports of Iloilo to export the best quality sugars of the province. To address such, I believe Negros will be more competitive if it has its own international port where we can ship and receive goods immediately from the international market. Aside from this, Negros have a trend where most of the farmers’ children don’t already have an interest on agriculture and this makes it more difficult to obtain manpower to harvest all those crops. Mentioning those, it will result to price increase and lower productivity.

  63. Rodolfo A. Song

    Negros failed on the issues of industrial ization program.Industrial development had not performed as well as the other sectors of the economy. Many of our neighbors with farless natural resources than Negrosa marched steadily forward in industrial development.There is no reason why we cannot keep pace with them. We can address this problem by accelerating the implementation of our major Industrial projects,develop and organize export promotion effort,hardened the rationalization of our industry and let’s give the best assurances to our farmers to our farmers investors exporters to continue and encourage to invest in foreign investment.with this new development strategy we are determine d to carve out our rightful place in the world of business.The government must accelerate the economic growth through increasing public investment,improve agricultural performance,by offering big incentives to farmers,expand irrigation and other inputs. Economic and social progress can be attributed to a number of factors, political stability, general strong commitments to development, a large increase in our investment levels high priority given to agriculture and export sectors. Increase the international trading and last but not least strictly impose a sound and pragmatic economic management.

  64. betsy mariz demontano natavio

    The other concern that Filipino business people need to address is choosing the right people. Having a business internationally may require them to hire local people. Employee is one of the best assets of a company or a business. Due to cultural differences, it may be hard to choose the right people to represent the company or the business itself.
    The government may offer low interest loans to small businesses in the local market.
    Another way to help and protect local businesses is to impose high tariffs to imported goods. They must also have close monitoring to the employees and strengthen their campaign in combating corruption in Customs.

  65. betsy mariz demontano natavio

    Negrenses may have a hard time in exporting the goods to another country considering the location and transport. Negros itself does not have international airport and seaport. The cost of transporting the goods from one location to another is very costly. There is also a high risk of damaging and losing the goods during transit. What they have to do is to partner with trusted couriers to make sure that the goods are in safe hands and it will be delivered on time. They may also need to partner with other local businessmen that are into exporting and they may come up with bulk delivery. In that way, the freight and tariffs will be lessen and will be divided at the same time. Another issue is the payment process. Negrenses may have to fully adapt the technology for cashless transaction. Language barrier is another issue that may encounter by negrenses when going into international business. Although we may be good in speaking English, other countries may not still be fluent with it. Negrenses must hire the locals of that specific country that is knowledgeable enough about the culture and can speak the language. Another concern would be taking the risk to trust someone with the goods being imported and handles the distribution of the products. They must coordinate with agencies like Export Marketing Bureau to check and to make sure that the person you are dealing with are legal and legit.

  66. Ma. Lourdes B. Navarosa

    Negrense Producers faces issues on packaging and product quality improvements and tough competition in the global market. Competitors who had state of the art marketing scheme and packaging were on its edge. Negrense Producers, especially exporters has to further improve their products quality and a need to innovate its packaging – for it is noted that packaging is one of the major challenges for entrepreneurs. We have good products but still there is a need to be improved compared to other foreign entrepreneurs. Negrense Entrepreneurs particularly need to consider improvement on the packaging designs, kind of materials being used and make it more enticing to the buyers both in local and global target markets.

    Our government agency specifically the Department of Trade and Industry (DTI) including Department of Agriculture (DA) has to consistently do or provide something i.e. training or any assistance to the local entrepreneurs or producers on packaging and others– specifically to those who are in the export arena for the improvement of the product packaging to equip producers to be globally competitive. Joining International Food Expo (Ifex) with the support from the government of Negros will be a big boost to Negrense Producers.

  67. Gekka Kaye Eusebio

    1. On my own opinion, given the common the problems presented, the issue that Negrense are facing is the person dealing their trade. I have talked to one Negrense who will going to have his outward remittance for payment is that they need to investigate first the Company they are dealing with and if they have friends in that country they are asking favors to check if it is really legit. As what he said, today’s trading trust is a big word and that losing money for nothing is regretful. In addition commuting to other traders is also an issue, considering the time difference and the language barriers that some traders misinterprets what you mean to say. The government should coordinate with the traders and helped them investigate if the person that the traders are dealing with is not a scammer or not taking advantage of them.

  68. Mirriam Dickinson

    The pointers on articles helps a lot to those who plan to venture their business abroad and go international. I fully agree on whom you do business with. Language barriers is very important when dealing with other nationalities. I think Filipinos can really do well in exporting their business if they are well-versed enough with the diversityof people of that specific country, their culture and practices, and the government itself. Taken for example our local Bong Bong’s piaya. They just started joining in a fare trade in UAE and now you can see their products in a local shops as well as hypermarkets and supermarkets. I think its because of the population of Filipinos living in UAE. But even so, if you do not have a solid case study on your business on how to be known internationally. You wont be able to expand your business globally.

  69. Claudine Faith Ignacio

    International trading is a transaction between two different countries. It allows businesses to expand not just locally but also globally. It is an opportunity to grow wherein your products will also be known in international setting. When going global you have the opportunity to innovate more about your products offered so that may people will patronize and will use it. You have to make sure that your products can compete well in the market. Importing and exporting of consumer goods is one of the best example of international trading and most of the businesses are already engaged in this type of business venture. If there are benefits or advantages in international trading there are also disadvantages. Here are some of the issues when doing business abroad:
    1.Legal differences – every countries have different rules and regulations that should be followed. It is important to apply those legalities, on how those products should be taxed in a certain country so that you can operate your business well.
    2.Currency exchange – this is one of the issues to be considered also because exchange rate is not stable and it is changing all the time. It is important to create a long term planning and budgeting.
    3.Local competition – being aware of your competitors so that you can create a marketing strategy to compete globally. Connect with the people who have the knowledge and expertise so that it can be more easier to expand in global aspects.

  70. Gene Claude Mapa

    Negrense people have also the ability to do business abroad. Some business men and even small entrepreneurs have undergone training in aspects of international trade. But when dealing with global transactions, negrense also faces different types of problems. Because of the differences in trade partterns and business policies among countries, restrictions and constraints is imposed on exportation or importation of goods. Another problem is the strict regulatory measures, foreign exchange rate volatility and higher tariffs and taxes being paid which is very costly for Negrense people. Some entrepreneurs also lack knowledge in handling new and recent equipment which is very useful in the production of their raw materials.
    To address the issues mentioned above, I think the provincial government should give focus and boost the international trade agreements with other countries. They should support even small, medium and micro enterprises by allocating enough funds for training and capitalization. This is a great investment since it will attract foreign investors which will be beneficial to the province of Negros.

  71. Joe Salvador Mercado

    1. Given the common problems presented, what do you think are the specific issues Negrenses face when doing business abroad? How can we address this?
    Basing from the post, the first issue that needs to be addressed as soon as possible is language barrier. Although English is the second language for us Filipinos, and we are good at it, it’s not all the time that other countries in which we want to do business with is good at it as well. Learning the language of the country, custom, tradition and culture is a must when doing business.
    We Filipinos can adapt to the change of culture drastically, we are one of the most flexible people in the world, but we need to be on our best when it comes to flexibility especially when we do business.

    Another issue that needs be addressed is the right importer to deal business with. Trust is not easily earned, getting the right person at the right job at the right time is as hard as finding a needle in the hay stack. So, before we get contract or deal with the person or company, research first and get as many options as you can, that way you can choose the best person to have a deal with.

  72. Joe Salvador Mercado

    1. Given the common problems presented, what do you think are the specific issues Negrenses face when doing business abroad? How can we address this?
    Basing from the post, the first issue that needs to be addressed as soon as possible is language barrier. Although English is the second language for us Filipinos, and we are good at it, it’s not all the time that other countries in which we want to do business with is good at it as well. Learning the language of the country, custom, tradition and culture is a must when doing business.
    We Filipinos can adapt to the change of culture drastically, we are one of the most flexible people in the world, but we need to be on our best when it comes to flexibility especially when we do business.

  73. Joshua Japitana

    It had been long proven that our ancient ancestors had been in trading relationship with our neighboring countries which started a very long time ago. It allowed us to be able to enjoy the products and things that are not native here in our country. It allowed us to establish relationship with other people, learn their language and eventually, their culture.

    Nowadays, trading is very much different compared to what we have before. We have to follow certain rules and regulations so we can trade seemlessly with different countries.

    Below are the specific problems i think negrense faces when doing business abroad:

    1. Lack of Financial Assistance from Our Government
    -For us to be able to go global, we have to ensure that we have enough capitalization. If only government can provide and grant loans at the lowest interest rate possible, our exporters will have a better chance of reaching the global settings.

    2.Proper Training and Seminar
    -Our government should equip our exporters with proper skills and training so they would know how to deal with other countries. This way, they have a better chance of surviving the global market.

  74. According to this blog, typical problems international traders face drift among location that specifically draw issues on geography and the transport of goods to the target market, payment process which requires digital transactions through cashless payments availability, language barrier that shall help establish trust between the exporter and importer, and choosing the right partner to deal business with especially with matters that involve money. With these common problems presented, I think Negrenses that do business business abroad specifically face the problem of location and transport which is a result of Philippines as an archipelago. Before the product arrives to the target market, it goes through various sea or air transportation which is vital in doing international trade that can compromise the quality of the product. Hence, this can be addressed by Negrenses that enter international export shall carefully research, study and analyze the factors pertaining to such in order to guarantee that goods shall be delivered as it is in whatever circumstance it may go through along the process of transporting.

  75. Nadia Diana S. Casas

    The specific issues that Negrenses facing when doing business abroad are the payment processing this is generic for the entire term for expenses on the operation of a particular business, and it is also the basic need. When you’re planning to having a business abroad it is safe to have secured big amount of bucks. This essentially ensures you have the capacity to pay out bills all throughout from the need of manufacturing such as manpower, resources and delivery to taxes and other fees for exporting required when having such since other countries’ currencies has highest money value. Another issue is the location and transport, this may sometimes cause delayed for deliveries and product damages because of this you have to reproduce new sets of products,monitor areas of delivery and its efficiency.
    In order to avoid difficulties when doing business abroad, is that you have to secure your capacity on paying of bills, and your consistency of paying those. Step by step try to expand business nationally. Selling of products specially with a fame of its name already in it is a big advantage that other locals would dare to buy it.

  76. Pearl Joy Ortiz

    i think the specific issues Negrenses face aside from the problems mentioned in the article is the huge tariff and export fees. most countries have different kinds of fees charged on goods coming into their country. Thus, making your product more expensive and less desirable/competitive than domestic products in their country. In short, if your product price is high, consumer consumption will reduced, the smaller your profit is. The emergence of cheaper China products are also a threat to Negrenses business because they are penetrating the global market nowadays. In addition, Negrenses also faced with very strict and difficult customs procedure in our country.

    Government should review unnecessary domestic regulations about export procedures. Make strategies for regulatory reforms about trade and export in the country.The DTI should collaborate with other sectors or organizations like Philexport and Export Development Council to help exporters diversify new products to new market. Identify and develop capable products for global demand. Address export competitiveness by harnessing potential goods and services for the Philippines to attain comparative advantage.

  77. Jonathan Reeve B. Miranda

    Business is difficult to manage when you do not have enough knowledge about the business itself and the location where it is established. Many business fails to last long. It is because they don’t have enough preparation to research and study about the business they will build.
    The issues of most business people especially the Negrenses face when doing business abroad for me are; the exportation of the product are too expensive than the original price because of the tariffs or taxes the government charge for every product to enter in their territory. Laws of the country or state also is one of the issue since Negrenses are not familiar to what legal and illegal things to their place. Getting permits to a business is also difficult to other countries especially if you are not a resident of the country. Adopting and locating what or who you will market is also a must. People don’t have enough idea of the product that they are selling and you have to adjust your styles or taste of your product according to what religion or place you are dealing with.

  78. Jackie Lou A. Lasola

    First, the language barrier, yes Filipinos specifically the Negrenses are good in English however, there are many countries around the world who doesn’t know how to speak English. Dealing with this kind of problem should any parties bring with them a good interpreter to speak well on their behalf or study first the language of the specific country you’re planning to deal business with.
    Second, culture differences. Bringing business in the global is one of the toughest decision you will ever made. A culture shock of course the Negrenses will be facing at first. Culture differences will vary from one country to another. Learning, understanding, and adopting the culture of the country should be fully embraced.
    Third, aside from the mentioned above, going global has many areas to consider, the following are; transportation of the products, payment process, trust, laws, rules and regulations and politics. Before entering into the global business do a thorough research, more inquiries, and study first of the areas mentioned above.

  79. Jholina B. Indac

    A major challenge in doing business business globally is to adopt excellently differences between each other culture.Such adaptation to language religion, beliefs, way of living and culture. Making your business globally as a high risk on other hand a big achievement also to the company. Thus, it should still take into respect language barriers as well as different attitudes.
    As part of company’s vision-mission to be the top and globally competence, it must prepared and understand the cultural ways in propagating business worldwide. To offer a universally competent business and to satisfy customers.
    While navigating those all prospects cross-cultural differences of country’s, its a big challenge to all of us the impact and risk to our business but all of those challenges through familiarization, sensitivity, openness to make everyone lives easier.


    Q1. Given the common problems presented, what do you think are the specific issues Negrenses face when doing business abroad?
    A1. Payment process is one of the common issues faced by Negrenses specifically for those were engaged in imports and exports. First and foremost the company needs to identify the exact computation on the taxes and duties to be paid in doing the transactions (Problem: mostly, payments have been cut-off due to undeclared items), if not you will be subject for penalties and the company might be blacklisted.

    Q2. How can we address this?
    A2. Businesses expands globally must hire law experts to determine the different law in different countries to avoid penalties and litigation. Negrenses find it expensive to hire lawyers, but some tried to be vigilant and dare to pay for their lawyers just to protect the image of their company.

  81. Ira May Macadagdag

    1. Typical Problems International Traders Face
    Question: Given the common problems presented, what do you think are the specific issues Negrenses face when doing business abroad? How can we address this?
    Expanding your business globally provides a lot of new opportunities, growth and profit to the business but it also provides a lot of significant risks and challenges associated in going international. Specific issues that Negrenses or business owners face are mainly connected to macroeconomic factors and those are language issues & cultural barriers. Logistics would also be included as one the issues that can affect the entire business. When conducting business to other country, we should always be familiar with norms, culture and the tradition of that particular country. Hiring a local representative can mainly help the entire operation of your business or invest in learning the language in that way it will help you communicate well with your customers. Issues with logistics (shipping, customs or transportation) would also arise given the fact that Philippines is an Archipelago shipping cost would really be too high and delayed delivery of goods would greatly affect the business so its best to plan ahead and be positive at all times. Best approach in solving logistics issues is to find the right partner and build partnership with local businesses. With the local knowledge and expertise it can help you find alternatives in delivering your goods to your customers on time and they can also help you gain more costumers.

  82. Jezamie Nicolas

    Expanding business internationally means next step for the growing of the company. One of the specific issues Negrenses face when doing business abroad is the right importer to deal business with because if the company is planning on going globally, building rapport with the importer is the best thing to do. Finding a trustworthy and knowledgeable people when dealing a business is very challenging. The company must establish good relationship with the importers to know someone that the company can trust and who can assure the company products or goods that send out on the other countries are in good conditions. Another one issue in doing a business abroad is choosing the right countries because before expanding the company internationally, it must conduct enough research to determine if the company’s product is ideally okay in that countries market.

  83. Jocelyn D. Palomo

    Venturing into exporting business nowadays is a very challenging aspect of every business. Before deciding to get involve in a risky undertaking of exporting, there are a number if not a few considerations that needs to carefully think about which needs to be accounted and planned.

    Negros is located in the middle and one island out of 7,641 islands in the Philippines and since we are an archipelago, products that we export will need to have more than one transfer from Negros before it could actually be out going abroad. This will take time and pricey as well before it will actually reached the desired location outside the Philippines without sacrificing the quality of the product. And in some cases if not all, transport needs a little boost in what we call “under the table” to expedite the process.

    To be able to compete globally, Negrenses exporters needs to improve the quality of the products that we are offering to the global market. Thus, it will be best to improve the type and design of the packaging used to be more competitive along side with the other exporters globally. This will create an edge over the other products offered globally attracting the buyers.

    The exporters needs the support of the local government in meeting the quality standards to attract more potential clients and eventually get more orders by coming up with seminars and inviting the exporters to it.

  84. Florencia Sumcio

    The Right Importer to Deal Business with is the major issues of Negrences and all importer doing business abroad. When choosing a shipment line partner, need to do more research for the best freight forwarder, do a background check about the company, if that’s a reputable company and be careful to deal with and transact legally.

  85. Cybel Valaquio

    In doing business abroad, Negrenses face issues like processing documents or requirements to send goods or products in other countries, expenses in processing, safe delivery of goods or products, communication and the trust to the target market or business partner in that particular place.
    To address these issues, first a negrense businessman will study the cycle of processing the documents. After knowing the cycle, he or she will coordinate or make a proposal to the government about his or her products so that the government will be able to know the contribution of the products to the country’s economy and if the products are profitable, the government may also give support to export the products to other countries. For the security of goods or products in delivery process, negrense businessman can also get an insurance to it. In order to avoid being scam by other countries, through good communication, he or she can request documents as a proof of legality of transaction like the contract.

  86. Rustom Padios

    Aside from the beautiful products like masks, accessories, and garments; Negros Island is very popular when it comes sugar product. Doing business in the global arena is a tough and challenging task for any Negrense businessman. Some of the problems they may possibly encounter are the target market itself, sufficient knowledge in doing business in the international market, and the culture of its target market. The target market can be an issue because Negrense businessmen need to identify what country is feasible to be considered as a target market. Competition is stiff, a manufacturer needs to make its product unique from others and that is something Negrenses need to consider especially in choosing a particular country where it will sell its product. Product acceptance is a must. Second, Negrenses needs to have broader knowledge and understanding when it comes to doing business abroad. Sure they have knowledge on becoming successful in the local scene, but becoming successful globally is a different story. And third, Negrenses must consider cultural differences. Culture is beautiful but is complex at the same time. Knowing the norms, values, beliefs and attitude of the target market is advantageous, it will make you understand them better and allows the marketer to provide product aligned to their needs. These issues can be address if Negrenses will conduct thorough study and analysis of its projected target market. Before venturing in the global business, one must be sure of who and what they are dealing with. Also, businessmen needs to undergo further education, attend symposium and seminars and build linkages with others. Sometimes the more you know, the better. And lastly, appreciate diversity.

  87. Agnes Catherine M. Jose

    Negros entrepreneurs who trade internationally definitely face the common problems cited in the article, but I think it’s location and transportation that creates a bigger impact on Negros traders. As compared to other traders from Manila and Cebu who enjoy better access in airports and seaports, Negros business people has to face a more complicated route arrangement in transporting its goods abroad. Majority of products from Negros are shipped via Cebu, Iloilo or Manila. Our local airports does not have international flights. Our seaports have limited facilities as well. And because of this issue in transportation of product, it adds up to the cost of our product which might affect product competitiveness in the foreign market.
    The current Build, Build, Build program of the government, when fully implemented will be a big help for Negros traders. More bridges, additional seaports and airports as well. This will help ease Negros traders shipment issues and will give boost to local products.

  88. Riza Mae H. Villanueva

    Finding the right person for the business needs trust and fulfilling good relationships same goes with looking or dealing with the right business. Nowadays, it’s hard to find the right business specifically abroad. That is why, the ones that are looking are more into Word of Mouth and Social Media. They must apply trust inorder to build relationships for a great business. (Trust = Build relationship = Great Business)

    • Another problem we may faced in International Trade is:

      Import and Export Stricture.

      Developing country like Philippines, continually revisits and imposed stricter restrictions especially on importations. Revisions or upgrade usually happens if trades involves environmental risk and or tightening, due to maximization of home produced.

      More countries of this generation wanted to be more self sufficient, in order to maximized available resources and workforce.

      On this regard; tariff rates, quotas and even requirements are regulated to ensure locals will not be affected.

      With this, joining international trade must be well-evaluated, coupled with strategic ABC’s to secure Business Steadiness amidst foreign challenges.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.