There’s never been a better time to trade internationally. Between high-growth markets and newer emerging economies, there is a wide range of viable international markets available for businesses of all sizes, whether new to exporting or looking to expand on an existing range of global markets and services. Despite austere times in the developed markets, almost two-thirds of UK executives believe the economic strength of emerging markets will offset a downturn in Europe and North America.

Most economists predict that changes and developments in the 21st century will see the economic centre shift from the developed world to high-growth markets such as Brazil, Russia, India and China, collectively known as the BRIC countries. Confidence in these markets remains strong with many businesses selecting one of these four as a priority for expansion. The BRIC countries are also exporters themselves with Russia and Brazil recording export growth of over 250 per cent between 2000 and 2010, while China – now the world’s largest goods exporter – reported growth of over 500 per cent in the same period.

BRIC by BRIC
The fifth largest country in the world with a growing population of around 185 million, Brazil is simply too large a market to ignore. Generally speaking, if a product or service is competitive in world markets then it is likely to sell well in Brazil, owing to its broad and sophisticated industrial base. This rapidly developing economy – the largest in South America – has a GDP per capita greater than either India or China, and Brazilian consumers and businesses have developed high standards for both quality and value for money.

Companies involved in the sports infrastructure and security sectors in particular should be looking to Brazil as the 2014 FIFA World Cup and 2016 Olympics will be held there. The London 2012 Olympic and Paralympic Games are the perfect platform for UK businesses to make an impact on this market through UKTI’s Host2Host programme, which includes Brazil, South Africa and Russia. In Russia, a Host2Host agreement signed in 2009 helped lJCB complete a contract to provide excavators for key infrastructure development in preparation for the Sochi Winter Olympics in 2014.

One of the three largest high-growth markets by geographic size, Russia remains an attractive target for exporters and investors, and economic modernisation and infrastructure development are high on it’s government’s agenda. With 140 million consumers, as well as favourable cross-sector opportunities – some unique in scale – Russia presents a golden opportunity for international expertise and products and since 2001, UK-Russia trade has grown by an average of 21 per cent year-on-year.

Though entering a challenging market like Russia requires resources that aren’t readily available to many SMEs, UKTI services are available to assist them in overcoming legal and regulatory barriers, establishing contacts and networks and building recognition and market share internationally. In some countries, dedicated information providers are in place for UK businesses interested in extending their business such as the China-Britain Business Council, UKTI’s official trade service delivery partner for mainland China.

As the UK’s fastest growing overseas market, with 250 million middle-class consumers and rising, China has been the great economic success story of the past 30 years. The economy grew 8.9 per cent in the last quarter of 2011, by far the best performance of all major economies.

While this rising economy offers an abundance of opportunities to UK companies, businesses choosing to invest there need to keep abreast of rapid developments in this large and complex marketplace. To overcome difficulties in finding the right contacts, a number of SMEs in China use trading houses to generate leads and build relationships with potential customers.

Across all sectors, China is expected to become the world’s biggest market by 2050, which comes as no surprise considering the enormity of the area. The country is divided into 30 provinces, each one at least the size of the UK. Foreign skills and know-how are actively welcomed and UK businesses already have a significant presence being the second-largest EU investor there at the end of 2010, accounting for $17.1 billion of investment.

After China, India is the second-fastest growing economy globally, and the middle classes in both countries are expected to increase household expenditure fourfold over the next 20 years. A few years ago, business opportunities in India were confined to the economic heartlands of Mumbai, Delhi and Bangalore. Now, these opportunities are spreading across the country to the emerging cities of Nagpur, Ahmedabad, Gujarat, Jaipur, and others.

Colombia
Nearly five times the size of the UK, Colombia is a large and diverse country with a long tradition of economic and political stability. Primary commodities remain its main exports (in particular crude oil, coal, coffee, and non-ferrous metals), but British companies operate in a wide range of sectors, including financial services, food and drink and environmental services.

Taiwan
Taiwan is the world’s number one manufacturer of notebook computers, PDAs and scanners. In 2010, UK exports of goods to Taiwan exceeded £1.5 billion, showing the highest increase for UK exports to Asia Pacific markets.

Qatar
The UK enjoys a healthy trading relationship with Qatar with exports more than doubling in the last few years. Its GDP per capita is one of the highest in the world while its high rate of economic growth, economic diversification and investment in human capital in accordance with the Qatar Vision 2030 continue to generate opportunities for UK businesses across a wide range of sectors.

Egypt
Nine hundred UK companies already invest in Egypt and UKTI has identified opportunities that exist across a wide range of sectors including education and training, engineering, oil and gas and ICT. The Arab world’s most populous nation, Egypt’s population of 80 million is expected to double in the next 25 years.

Branching Out To Emerging Markets
Almost one in three SMEs use their position in one high-growth market as a springboard into neighbouring emerging markets. Explorations away from BRIC countries are often driven by rising labour costs and, in search of lower expenses and richer consumers, investment patterns are shifting towards Vietnam, Mexico, the UAE and Ukraine, countries that top the list of tomorrow’s high-growth markets. However, most companies see these markets as additions to a BRIC base, not alternatives.

Vietnam is shaping up as the most attractive new emerging market. Traditionally a strong market for textiles, the country is now attracting investment in industrial, IT and electronics manufacturing, while its low cost base and sizeable population mean it could even begin to challenge China as a leader in low-cost manufacturing.

With an estimated 20 million urban middle-class consumers, the Vietnamese economy continues to expand. Though inflation is a concern (12.2 per cent in January 2011), the fundamentals of the economy remain strong and industrial production rose by 16.1 per cent in 2010. Continued high growth has seen Vietnam reach Middle Income Status (US$1,000 per capital) and bilateral trade has grown strongly in tandem.

Another dynamic market with huge potential for UK investors is Mexico. Having demonstrated predictable and stable economic growth thus far, analysts are predicting that its economy will be bigger than the UK’s by 2040. Mexico has a strategic global position between Latin America and the US and Canada, while low-cost communications and improving infrastructure in Mexico City is attracting more and more small UK businesses, particularly those in the green sector as Mexico imports roughly 80 per cent of its environmental goods and services.

Though attractive markets like Mexico, the UAE, Ukraine, Indonesia and Singapore may not be able to match China or India in terms of population, their progress in market reforms, trade liberalisation and governance will weigh more heavily in company investment decisions, especially given competitive wage levels. Indonesia, the largest economy in south east Asia, is the world’s fourth most populous country with over 240 million people, over a quarter of whom are under 15. Its affluent middle class is growing, and with it are opportunities for UK businesses across a range of sectors.

Trade relations between the UK and Indonesia are healthy with exports in 2010 reaching £438.9 million, an increase in 25 per cent on the previous year. In addition, imports from Indonesia to the UK also saw an increase of 13 per cent, hitting £1.3 billion.

These new emerging markets offer a lot of business potential, but they also represent a lot of unknowns for British companies. Good market intelligence is more important than ever and this is where UKTI and its global network can help with advice on legal and regulatory issues and specific trading information on all markets.

Today’s global trend of internationalisation is not just for big business – emerging statistics show that SMEs in the UK across all sectors are thriving in international markets. Two in five small exporters are already doing business in at least one high-growth market Not only are there opportunities to drive deeper into rapidly developing markets such as China and India, but a new wave of largely untapped emerging markets are now also offering huge potential.