Trade strategy in international business
Facilitating global trade involves following internationalising clients wherever their businesses take them. Commerzbank believes these clients are best supported by targeted expertise and close relationships.
Global trade faces a number of challenges. Meanwhile, looks set for a mere 3. Such growth rates are particularly sluggish when compared to the expansion recorded before the financial crisis, when world trade grew at an average of seven to eight percent per year. In fact, growth in world exports and imports has remained very disappointing over the years since the crisis and the rebound.
Rather than expanding faster than world GDP — a sign of economies opening up, new investment trade strategy in international business growing trade strategy in international business — trade has performed about in line with the expansion in world GDP see Fig.
In such a testing environment, recovery in trade and sustained globalisation depends on the banking trade strategy in international business more trade strategy in international business ever.
For a bank like Commerzbank — established in to facilitate international trade — this is a prime concern. If it is to ensure another years of trade, it knows that it must prioritise close relationships with its corporate clients, following them wherever their trade takes them. Pursuing such a relationship-driven, customer-focused approach means a bank must be prepared to take a globalised attitude to business. Not only does this mean serving trade across established, developed markets in Europe; it also means branching further out across the globe, in order to help its customers benefit from considerable new opportunities in Asia, Latin America and Africa.
Clearly, a bank needs to be able to provide adequate support to these companies as they navigate their new opportunities worldwide. It must have access to the necessary global correspondent banking networks to facilitate cross-border trade, and it must provide tailored expertise to corporations in order to secure them from risk, advise them on local markets, and optimise their strategies. Lastly, it must ensure that the banking infrastructure offered to corporations is modern, digitalised and future proof.
Growth in trade strategy in international business exports and imports has remained very disappointing over the years since the crisis and the rebound. A new trading base Facilitating international trade since has given Commerzbank a great deal of experience when it comes to working with exporting companies.
In an export-led country such as Germany, corporations are, trade strategy in international business, shrewd when it comes to choosing banks that can meet their foreign demands. In fact, in addition to enjoying a leading position in foreign trade business, Commerzbank is a market leader when it comes to dealing with export letters of credit in the eurozone, with a figure of over 18 percent. With German clients working in Austria, it was a logical step for Commerzbank to follow.
Indeed, with the ambition to be the bank of choice for international corporate banking in Austria, Commerzbank has already made a good start; posting double-digit growth in earnings, expanding the Vienna office to around 40 employees, and supporting both SMEs and large corporations.
Like Germany, this exporting nation — with its highly productive and skilled workforce, and top-class infrastructure — provides a thriving opportunity for Commerzbank to help corporations grow their international business. Working in the country for nearly three decades, Commerzbank now enjoys a relationship with over three quarters of the top Swiss companies, as well as its thriving SME sector, having expanded its presence with six new local offices and over staff.
Going global Of course, globalisation means European businesses are increasingly expanding beyond established markets in Europe to seek new prospects overseas. The WTO has noted that, despite facing trade strategy in international business challengingemerging economies have driven the rise in global trade volumes over the past 30 years. While developed countries once drove about 70 percent of global trade, today they account for no more than 57 percent.
Eager to tap into the potential of such worldwide shifts, corporations have looked to trade in emerging and maturing markets in Asia, Africa and Latin America. Trade strategy in international business is why Commerzbank regards global expansion as essential in order to be the key bridge between these counterparties.
For instance, it facilitates trade flows in key growth markets and countries such as Bangladesh, Brazil, Egypt, Trade strategy in international business and Turkey. European springboards Experience and presence in European countries, however, remain key to this growth. In particular, Commerzbank has found the Iberian Peninsula to be a springboard from which companies can seek new opportunities in South America.
This lays the groundwork for Commerzbank to follow trade to Brazil, for example. In fact, around 1, German companies already operate in Brazil — the largest stock of German corporations abroad — of which the majority are customers of Commerzbank.
Commerzbank also thinks it essential every client has a dedicated relationship manager to navigate them through these international networks. Taking a proactive, relationship-based approach — offering a trusted second opinion on strategic opportunities worldwide, and alerting corporate clients to regulatory changes — relationship managers also help firms set up overseas business accounts, and liaise on their behalf with various specialist Commerzbank teams for trade strategy in international business right solutions and products.
Undoubtedly, the risks of entering new, exotic markets can be significant. But this is why Commerzbank operates one of the most active risk mitigation desks in the world, in order to sustain trade and help corporate customers remain competitive in challenging markets. Another asset Commerzbank sees as essential to its corporate clients is digitalisation. Recognising a digital-driven experience is the new normal for modern and efficient corporate business models, Commerzbank has invested heavily in technology for its corporate clients.
A notable example is the pioneering use of trade processing centres. With two already established — in Poland and Malaysia — and more in the pipeline, these centres allow corporations to do business around the clock, every working day, with their trade unaffected by global time differences.
But supporting corporate customers across the globe — from Germany to Brazil, and from Bangladesh to Nigeria — requires a relationship and technology-driven commitment few financial institutions can muster. Facilitating international business through global trade Facilitating global trade involves following internationalising clients wherever their businesses take them. Previous article How Commerzbank helps businesses expand internationally.
Next article Nigeria enters the e-banking age.
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