The Future of Export Promotion (VIDEO)

Professor Michael Czinkota and former US ambassador Charles Ford discuss International trade, foreign direct investments and export in the past and the future of US Foreign Service and how American businesses are involved in the global economy.

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

No More Silos! (Part 4)

Export Promotion and Assistance.

Charles Ford, acting assistant secretary for trade promotion and director general of the U.S. and Foreign Commercial Service, spoke about new export insights generated through research and analysis. Of all the U.S. firms that export goods, 58% only ship to one country and another 25% only export to two or three countries. If the skills, competence and competitiveness are already there, then such firms should be encouraged to serve more countries around the world.

Export assistance to large exporters suggests the largest yields of governmental support efforts, yet large exporters need help the least. Small and medium-sized firms can use the support most but often are uninformed and disinterested in engaging in exporting.

Based on World Bank data, $1 dedicated to export promotion generates up to $40 in actual exports. A new strategy intends to achieve exports by investing in the United States, particularly by making use of existing and growing university networks in export promotion.

Caroline Freund, a chief economist for the Middle East and North Africa region in the World Bank who specializes in international trade and finance, reported on research on firm size effects on export success. She found that there was little evidence of rapid growth from small to large exporters. Rather, exporters tend to be already large when they start with the export effort. Most of the trade is seen to take place on an intra-industry level, and more than one-third within firms. The top 1% of firms in a country typically carries out 80% of the export work, and export activities are characterized by a very high market entry and exit of firms, according to her research.

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. View part 3 hereGuest 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.

International travelers help boost U.S. economy

According to a recent article of U.S. Department of Commerce, data show that international travelers have spent around $82.2 billion on travel and tourism-related goods and services last year, an increase of 11 percent. According to its analysis, U.S. travel and tourism exports reached a new record in the first half of 2012, and may continue to grow with a closing amount of $170 billion.

Foreign citizens’ traveling to America and buying goods and services from American companies also count toward U.S. exports. Government has paved path for U.S. tourism industry to further develop their business, providing more crucial data and enhanced interactive web content, multimedia, mobile, trip-planning tools.

For more information: http://www.commerce.gov./blog/2012/08/23/international-traveler-spending-pace-record-setting-year

Weekly News – Import controls

On August 17th, Argentina notified the WTO Secretariat of a request for consultations with the European Union on Spanish restrictions to its imports. Four days later, United States and Japan filed a separate dispute against Argentina on import control.

Argentina claims that a Spanish regulation implemented in April of 2012, in effect discriminates against biodiesel imports from Argentina. Whereas U.S. and Japan reported that Argentina has used a system of non-automatic import licensing to restrict and discriminate against imported goods.

For more information: www.wto.org