THE HUMAN FACTOR IN THE DEVELOPMENT OF FOREIGN TRADE
Reflections on occasion of the "Year of Exportation"
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by Félix Peña
April 2019
English translation: Isabel Romero Carranza
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The human factor is linked in multiple ways with the
development of foreign trade and, therefore, the productive development
of Argentina as well as of any other country. It refers mainly to the
characteristics and qualities of the human resources in companies or in
public and private institutions that have an impact on the development
of foreign trade. More importantly, it refers to the people who participate
in one way or another in the production and the exchange of goods and
services, whether on the side of the supply or the demand, or the knowledge
and intelligence that influence transnational trade flows.
For any given company, the human factor involves having human resources
who help compound knowledge, technologies and natural resources to produce
and offer quality goods or services adapted, in many aspects including
the final price, to the diversity of target consumers.
There are multiple options for the companies of a country when it
comes to enhancing the impact of the human factor in their foreign trade
strategies. These options may require an effective relationship with business
institutions and government agencies dedicated to the promotion of foreign
trade, either at national, provincial or departmental level. It may also
require links with educational and cultural institutions in their own
geographic location or even remotely, through digital access.
The human resources of a company that aspires to become international,
projecting to the world the quality goods and services that it can offer
in a sustained manner must have, in addition to knowledge, enthusiasm,
curiosity and openness to understand and enjoy diversity. The same qualities
are required of those who work at national or provincial agencies for
the promotion of trade and investments.
A great example in this sense was Débora Marini, Executive
Director of Santa Fe Global, the Trade and Investment Agency of the Province
of Santa Fe, who passed away last March at the early age of 37. Her unwavering
capacity for action inspired us to value the human factor in all activities
related to the promotion of foreign trade and her youthful energy spread
a contagious enthusiasm to all around her. This newsletter is meant as
a tribute to her.
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The Argentine government decreed that the year 2019 is the "year
of exports" as was the case once before during 1999. This provides
a great opportunity to acknowledge that a great collective effort is still
needed in order to project to the world the goods and services of Argentine
origin. Such effort involves considering the importance that the human
factor has for the development of the country's foreign trade in all its
dimensions, including, of course, the internationalization of companies
and investments aimed at the productive development of the country.
The human factor ties together in diverse ways with the development
of foreign trade and, therefore, with the productive development of Argentina,
as well as any other country. It refers mainly to the characteristics
and qualities of the human resources working in the companies or the public
or private institutions that have a bearing on the development of foreign
trade. More importantly, it refers to the people who participate in any
way in the process of production and exchange of goods and services, whether
on the side of the supply or of the demand, or the knowledge and intelligence
that influence transnational trade flows.
Understanding the differences of all kinds that exist between countries
is then an essential requirement when planning and carrying out an effective
strategy for international commercial insertion that is not only profitable
but also sustainable. Far away from the place where the offer originates,
across borders, people in distant markets might eventually become interested
and demand the goods and services offered. Reaching out to them is much
more than just a challenge of transport and logistics. Indeed, it poses
a cultural challenge.
This implies understanding the side of the demand, wherever it may be
in the world, in all its potential ramifications and dimensions. Customs,
values, tastes, preferences, priorities, are different across borders
and even within the same country. Understanding and appreciating cultural
diversity at the international level is, therefore, an essential requirement
when envisioning what kinds of goods and services can be projected from
one country to others. Sometimes, the differences are nuanced and other
times they are striking. For the sole purpose of providing basic examples,
wine and dulce de leche, among many other products, would prove this point
in the case of Argentina.
All this also involves understanding how the connection between supply
and demand is built through the multiplicity of markets, which is related,
among other things, with the degree of connection that exists between
the different markets and their people. In this sense a country such as
Argentina, with a marked and rich diversity in the origins of its population,
has an advantage when it comes to understanding how to connect with people
in other countries-sometimes as distant as those of Asia and Africa-where
different cultures prevail. The food and eating habits, leisure activities,
education, dress, learning and development of the people in those foreign
markets who demand goods and services are also aspects to be included
in the agenda of competitive intelligence of a company that aims to project
itself to the world.
For a company, the human factor involves employing human resources that
help compound knowledge, technology and natural resources to produce and
offer quality goods or services adapted, in many of their aspects including
the final price, to the diversity of the consumers that they intend to
serve. People who have good knowledge of the potential markets and their
different facets are, in this sense, a factor that can contribute greatly
to the ability to compete in countries and regions increasingly characterized
by the rise of an empowered urban middle class -that is, with awareness
of the variety of options available to them when demanding a product or
service. Knowing and having lived for some time in other countries, especially
those with deeply rooted cultures and different from ours, may be one
of the competitive advantages to evaluate when selecting the personnel
that a company needs, for example, for its foreign trade operations.
Companies have multiple options when it comes to enhancing the impact
of the human factor in their foreign trade strategies. These options may
require an effective relationship with business institutions and government
agencies dedicated to the promotion of foreign trade, either at national,
provincial or departmental level. It may also require links with educational
and cultural institutions in their own geographic location or even remotely,
through digital access.
These options can become so much more effective if a company knows what
it wants and what it needs to know and understand. Options for the training
of their human resources-an activity that in today's world needs to be
ongoing-and also to access the knowledge of other markets and cultures;
or to adapt its products and services to the diversity of the potential
external demand; or to communicate its offerings in a way that is adapted
to the characteristics of the multiple markets.
In addition to knowledge, the human resources of a company whose aim
is to become international and project to the world the quality goods
and services that it can offer in a sustained manner, must have enthusiasm,
curiosity and openness to understand and enjoy diversity.
A great example in this sense was Débora Marini, Executive Director
of Santa Fe Global, the Trade and Investment Agency of the Province of
Santa Fe, who passed away last March at the early age of 37. Her unwavering
capacity for action inspired us to value the human factor in all activities
related to the promotion of foreign trade and her youthful energy spread
a contagious enthusiasm to all around her. This newsletter is meant as
a tribute to her life and work.
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Félix Peña Director
of the Institute of International Trade at the ICBC Foundation. Director
of the Masters Degree in International Trade Relations at Tres de Febrero
National University (UNTREF). Member of the Executive Committee of the
Argentine Council for International Relations (CARI). Member of the Evian
Group Brains Trust. More
information.
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