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    | THE HUMAN FACTOR IN THE DEVELOPMENT OF FOREIGN TRADE Reflections on occasion of the "Year of Exportation"
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    | by Félix PeñaApril 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. |  
   
    |  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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