Thinking about exploring new export markets, but don’t know where to start your research? Feeling overwhelmed by data? The International Trade Administration’s new Market Diversification Tool can help you identify potential new export markets using your current trade patterns.
Among U.S. companies that export, more than half only export to one market.
The Market Diversification Tool can help identify potential new export markets using your current trade patterns. Based on the products you export and the markets you currently export to, the tool uses an algorithm to rank potential markets you may want to consider as future export markets.
The algorithm used to develop the ranking does three main things. It:
- Compares potential export markets to the market where you are already exporting, based on the premise that it may be easier to export to similar countries
- Examines product-specific trade data to see whether potential markets are primed for more exports from the U.S. of the product(s) in question; and
- Considers data that reflects whether potential export markets are generally good markets for exporting and doing business
Market Diversification Tool
It is a great starting point to supplement your own research into potential export markets. We strongly encourage you to familiarize yourself with the tool for the best results.
Just enter what products you make and the markets to which you currently export, and the Market Diversification Tool crunches the numbers to rank potential markets you may want to consider. It brings together a host of product-specific trade and tariff data and economy-level macroeconomic and governance data to provide a picture of which markets make sense for further market research.