New World, New Policy

The changing composition of U.S. trade 
international_trade_2We have often heated discussions on trade policy shifts. To make reasonable arguments, we must consider that the fundamental composition of trade has been changing. For example, from the 1960s to 1990s, the trade role of primary commodities has declined precipitously while in parallel, the importance of manufactured goods has increased. This has meant that those countries and workers who had specialized in commodities such as rubber or mining typically fell behind those that had embarked on strengthening their manufacturing sector. With sharply declining world market prices for commodities and rising prices for manufactured goods, commodity producers were increasingly unable to keep pace. Some commodity-dependent countries realized temporary windfalls as prices of oil, wheat, and corn rose dramatically, only to watch them evaporate as prices dropped in 2009.

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Birmingham Insights on Asia — (2) The Impact of the Government Policy on the Small and Medium-Sized Enterprises’ (SMEs) Export Activities in China

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This comment is based on Zheng Guan’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.
Recommendations for the Government Sector
1) Enhance SMEs’ export assistance and promotion activities. The government should develop more preferential export policies

Birmingham Insights on Asia — (1) The Impact of the Government Policy on the Small and Medium-Sized Enterprises’ (SMEs) Export Activities in China

Gallery

This gallery contains 1 photo.

This comment is based on Zheng Guan’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.
On a year-to-year comparison of export activities, most of firms surveyed exported more. However due to increased costs caused

Opening Old Wounds

The European Union has faced cultural hurdles in getting member countries such as Poland to agree to a proposed population-based EU voting system, due to historical bitterness over Germany’s Nazi past. With a population of 82 million, Germany has the largest population of any EU member country. At the 2007 EU summit, the Polish Prime Minister stunned other EU leaders by claiming that Poland (with a current population of 38 million) has 28 million fewer people today as a result of World War II (1939-45). He accused the Germans of “incomprehensible crimes” against his country, as it was Germany’s invasion of Poland in 1939 that triggered the outbreak of war. While his views might not necessarily reflect the general feelings of the Polish population, his comments indicate that such attitudes still exist seven decades after the event.

In Asia, one of the challenges in achieving economic integration is a sense of resentment and suspicion felt to a certain degree towards the Japanese, due to Japan’s military occupation of such countries as China (in the 1930s) and Korea (1910-45). The Japanese called their attempt to dominate the Asia-Pacific the “Co-Prosperity Sphere”. Despite modern-day relationship-building efforts, there are considerable historical obstacles to overcome.

Is the past just the past? How should world leaders look beyond culturally engrained historical antagonisms to cooperate on modern-day issues? Share your thoughts in the comment section below.

No More Silos! (Part 1)

A March 2013 meeting on trade policy and international marketing – hosted by the American Marketing Association, Georgetown University, and the U.S. International Trade Administration – was designed to let fresh air into the mature structures of human activity, to understand what markets, customers and suppliers need, and to appreciate the interconnectedness. No more silos!

Why is international marketing of great importance?

For one, the opportunities are there: 95 % of the world’s population lives outside of the United States. We are facing a tipping point for emergent and growing demand from all of these people, and we need to compete for interest and purchases.

International marketing also represents a strong footstool with three legs— policy, business and academia—and our meeting addressed them simultaneously. We further reinforced these three legs by looking at issues from 17 country views. If you consider the issue of computer security from a U.S. and from a Chinese perspective, different viewpoints will emerge quite quickly. This tells us that unless we communicate and understand each other’s perspectives, there is little chance of making progress.

This year marks the 25th anniversary of when both the Commerce Department and the business and academic sectors first looked jointly at trade policy and international marketing. It made sense to revisit the area and to determine what we have learned, and where we need to go. These 25 years reflect a generation during which we had enormous innovations, the joining of new partners, the creation and burst of bubbles, particularly in the finance field, and a renewed emphasis on international collaboration. Subsequent posts will look at the issues that international policy and marketing leaders see as being of paramount importance.

This article is a part of a series written by Michael Czinkota and Charles Skuba who report on the March 2013 meeting on trade policy and international marketing, a collaboration between the American Marketing Association, Georgetown University and the U.S. International Trade Administration. Guest writer Charles Skuba teaches international business and marketing at Georgetown University. He served in the George W. Bush Administration in trade policy positions in the U.S. Department of Commerce.