New world, New policy: Overcoming the Burden of Foreignness

burden of foreignnessWhy should we worry about misaligned participations in trade? According to the U.S. Department of Commerce, less than 1 percent of U.S. firms export. Tens of thousands of small-business manufacturers and service sector firms could export their goods and services, but do not. These companies often fear the challenges of going overseas. But all firms entering new markets face shortcomings and disadvantages when compared to local competitors. Due to a lack of local knowledge, unfamiliarity with market conditions, insufficient insights into consumer behavior, and newness to political decision making, all new entrants encounter a “burden of foreignness.” Policymakers need to help prospective exporters overcome this burden and successfully access new opportunities overseas.

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Spring Break Essential – Beach Reads in Fiji

Spring Break 2016 is around the corner. While you are packing up swimsuits and heading for somewhere warm, we are here to offer you some thoughts of islands and beauty. If you are planning to get some readings done by the beach, this review of trade policy in Fiji 2016 is waiting for you to pick up and read.

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Case Study: Starting an Import/Export Business

This is a case study contributed by Mike Kim, graduate student of the McDonough School of Business at Georgetown University.  It was originally published in the book International Marketing by Professor Michael R. Czinkota and Professor Ilkka A. Ronkainen in Georgetown University 2010.

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Top Ten Countries with which the U.S. Trades

For the month of April 2013

                                                  Year To Date
                                    Total in         Total in
                                    Billions         Billions
 Country Name                       of U.S. $        of U.S. $

 Canada                                         54.75           208.98
 Mexico                                         44.24           164.53
 China                                           42.09           167.43
 Japan                                                  17.04            67.11
 Germany                                       13.62            51.55
 Korea, South                                  8.79            34.23
 United Kingdom                              7.81            32.58
 France                                          6.75            24.20
 Switzerland                                   6.32            19.55
 India                                            5.73            20.56

source: http://www.census.gov/foreign-trade/top/dst/current/balance.html

President Obama’s Signature Paves Way for Permanent Normal Trade Relations with Russia and Moldova

As of August 22, 2012, Russia became the 156th member of the World Trade Organization (WTO) and on December 21, 2012, President Obama signed legislation that extended permanent normal trade relations with Russia and Moldova. A day before approving this legislation, the U.S. and Russia agreed to an Intellectual Property Rights (IPR) Action Plan in order to improve IPR protection and enforcement. It is important to remember that Russia is currently the U.S.’ 20th largest goods trading partner and that in 2011, Russia was the 14th largest import supplier to the U.S. It will be interesting to see how the U.S. and Russia attempt to increase their economic potentials now with less barriers to trade. Which key dimension will reign: Economics or Politics?