How international trade impacts industry development and company business
Most of the time, the company's business development is not only correlated to competitors and internal strategies. It connects to the Macroeconomy more, including the import and export analysis.
As an analyst, we make forecasts and risk analyses, understand the whole economy, and predict the impacts on our customers or channel partners. Here is an example of the prediction of healthcare business in 2022 (based on 2019 to 2021 historical data)
2019 to 2021 Taiwan import and export summary
Here comes the historical data on Taiwan's imports and export.
Let's start with importing data. The significant importing category Integrated Circuits and crude petroleum increased from 2019 to 2021. There is all ingredient for the manufacturing of different industries. With that, we can assume the Taiwan manufacturing players had a favorable view of the 2022 economy( they import materials for production and export).
On the other hand, the export of semiconductor devices and machine parts increased yearly, supporting that global or regional buyers were also in high demand.
So for both bright view of import and export, we assume our 2B customer would have more demand on hiring and other employee benefits. If you are part of the healthcare players, consider hiring sales reps and extending your business.
Be very cautious of appreciation or depreciation impacts on the company.
Two ways of impacts we should consider for the appreciation or depreciation of the currency. On the one hand, if the US dollar appreciates against other currencies, it can make Taiwan's exports relatively cheaper for US buyers, which may increase demand for Taiwanese goods. This could increase export revenues for Taiwan, which would benefit the country's economy.
On the other hand, appreciating the dollar could make Taiwan's exports more expensive for buyers in other countries, potentially reducing demand for Taiwanese goods in those markets. This could lead to a decline in export revenues for Taiwan, which would harm the country's economy.
In addition, an appreciation of the dollar could also increase the cost of importing raw materials and other inputs for Taiwanese exporters, reducing their profitability and competitiveness (import ingredient is one example).
This article gives a simple example of what information an analyst can refer to for a better business and demand forecast for the near future. In a recent uncertain era, the Macroeconomy and political considerations are getting more crucial to businesses for planning and resource allocations.
