{"id":3051,"date":"2017-10-20T01:31:03","date_gmt":"2017-10-20T01:31:03","guid":{"rendered":"https:\/\/raizinvest.com.au\/investors\/dealing-with-foreign-markets-how-investors-can\/"},"modified":"2024-04-23T07:16:44","modified_gmt":"2024-04-23T07:16:44","slug":"dealing-with-foreign-markets-how-investors-can","status":"publish","type":"post","link":"https:\/\/raizinvest.com.au\/investors\/blog\/dealing-with-foreign-markets-how-investors-can\/","title":{"rendered":"Dealing with Foreign Markets – How Investors Can Utilise Foreign Markets"},"content":{"rendered":"
\"image\"<\/figure>\n

By Ben Barlow of UMS Freelance<\/i><\/p>\n

There
\nare a lot of benefits to diversifying your portfolio and\u00a0exploring markets outside of Australia.<\/a>\u00a0Overseas
\ninvestments can offer plenty of new opportunities to profit from. Of course, it
\nisn\u2019t that simple, or everybody would be doing it too. A lot of effort must go
\ninto any kind of investment you make outside of the\u00a0market you understand best<\/a>\u00a0to avoid bad decisions
\nthat can cost you dearly. However, with the right research and advice, you can
\nfare well if you do make the decision to branch out. Here are some points on
\nthe whys and why nots of working with foreign markets:<\/p>\n

 <\/p>\n

Currency
\nValue<\/h3>\n

Right
\nnow, Australia\u2019s currency is strong. It bounced back in May and is still
\nsitting comfortably above US78c. This is good news for travellers, but bad news
\nfor Australian export businesses. Aussie travellers now have more buying power
\nabroad, particularly when they travel to the UK, Canada, and New Zealand, where
\nthe local currency is weaker against the AUD. A strong currency is also good
\nnews for anyone who loves to shop online. It\u2019s bad news for exporters, however,
\nas the AUD makes Australian products far more expensive for overseas customers.<\/p>\n

For
\nbusinesses that import goods from overseas, a strong AUD is a good thing, as
\nthey have more buying power. Importing supplies becomes less expensive,
\nparticularly from countries such as the United States, Japan and the UK.
\nImporting from countries with a weaker currency reduces costs in the supply
\nchain and allows for greater profit margins.<\/p>\n

This
\nis all simple economics, but something you need to investigate quite heavily if
\nyou want to deal with foreign markets.\u00a0Learn about forex markets<\/a>\u00a0and follow the markets
\nin any countries you want to deal with \u2013 after all, these things can change
\nvery rapidly. Australia may have a strong currency right now, but currencies
\nfluctuate daily, depending on macroeconomics and global events, so the value of
\nyour investments could change very easily. Keeping up with political and
\nmacroeconomic news in any country you might invest in or trade with is
\ntherefore crucial.<\/p>\n

 <\/p>\n

Emerging
\nMarkets<\/h3>\n

While
\nwe have touched on trading with major economies like the USA, Japan, Europe and
\nthe UK, another benefit from foreign investment is when you get in with an
\nemerging market at the right time. China, for instance, has a growing middle
\nclass of an estimated 300 million people, and this may be a good target
\naudience for luxury imported products as they tend to enjoy shopping for items
\nthat are made in the West as these can be seen as more luxurious.<\/p>\n

This
\nis a huge market for American, European, Chinese and Japanese businesses now,
\nbut can also be tapped into by Australians who are China\u2019s sixth largest trade
\npartner. Investing in property and business in emerging markets can also be
\nsomething to consider. Brazil, for example, is a country that is having something
\nof a business boom, and there are also interesting projects going on in the
\nCaribbean that could inspire the right type of investor.<\/p>\n

<\/h2>\n

Should
\nYou Try It?<\/h3>\n

The
\nproblem is, of course, that emerging markets tend to be culturally and
\nlinguistically quite different from Australia. Engaging with them can be quite
\nprofitable however will require a lot of research and travel, and this is
\nsomething off-putting to people who\u2019d rather deal with the Western, English
\nspeaking markets they already know well.<\/p>\n

The
\nidea of dealing with completely different audiences and markets may be a bit
\nintimidating, however it can work out well for the people willing to put the
\nwork in. What you will need however, is contacts in your country of choice who
\ncan help you understand and learn. Things like exchange rates, politics and
\nbusiness etiquette you can learn from online research, but you won\u2019t truly feel
\ntapped into the market unless you have someone on your side who is part of it.
\nIf you can get that kind of connection going, are willing to learn about
\nanother culture, and possibly learn another language (for instance, in India
\nand many parts of the Caribbean, English is the first language anyway, however,
\nif you decide you want to work with Brazil you\u2019ll need Portuguese), you may
\nhave a better chance to make some great investments.<\/p>\n

Business
\nis very international, and being global can generally be a wise move, but do be
\nprepared to put some work in.<\/p>\n

 <\/p>\n

\n

 <\/p>\n

Don\u2019t have the Raiz App?<\/h3>\n

Download it for free in the App store or the Webapp below:<\/p>\n

\n
\"download-raiz-app\"<\/a>
Click to download the Raiz app<\/a><\/figcaption><\/figure>\n

 <\/figure>\n

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The information on this website is general advice only. This means it does not take into account any person\u2019s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.<\/em><\/p>\n

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Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Ben Barlow of UMS Freelance There are a lot of benefits to diversifying your portfolio and\u00a0exploring markets outside of Australia.\u00a0Overseas investments can offer plenty of new opportunities to profit from. Of course, it isn\u2019t that simple, or everybody would be doing it too. A lot of effort must go into any kind of investment […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false},"categories":[1],"tags":[61,59],"yst_prominent_words":[1549,1545,1548,98,1547,1544,151,224,245,289,290,313,97,82,117,166,125,239,1310,1546]}