The Fate of the Export-Import Bank: Save Jobs or Save money?

Now is the time to determine the fate of the Export-Import Bank of the United States. This 80-year-old federal institution was created during Franklin D. Roosevel’s New Deal era and has been helping U.S. companies finance the export of goods to foreign markets. Yet, since 2012, Congress has considered stopping the renewal of its charter. The deadline is coming soon — June 30.

What are the key issues and arguments? Some claim that the bank supports less than half of 1 percent of U.S. “small business” and that big companies are the main beneficiaries of the bank. Boeing and General Electric, it is said, can access private financing easily by themselves. Advocates and objectors have important arguments over reauthorizing the EX-IM bank.

The Objectors:

Adam Andrzejewski, a Forbes contributor concluded that critics Ex-Im of charge cronyism, waste and outright corruption. His study Federal Transfer Report – Export-Import Bank states that taxpayers have an exposure of almost $140 billion in Ex-Im’s increasing lending. Pemex, which is owned by the Mexican government, is the biggest importer supported by Ex-Im bank, benefiting to the tune of $7.21 billion,. The biggest exporter, Boeing, benefits to the tune of $60 billion and received one third of all export support.

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So why does Hillary Clinton and some Congressional representatives such as Republican Stephen Fincher, and Democrat Annie Kuster work hard to save the bank? The answer is straightforward – to save jobs! It is ironic to see the possible demise of the bank while president Obama visits dozens of countries to increase sales of  U.S. made products and preserve U.S. jobs.

Policies such as tax and training benefits for reshoring companies (companies which offshored but now return to America) have encouraged firms to create jobs in the United States. Boeing has been severely criticized in the Ex-Im debate. However, the criticism of Boeing may not be entirely fair. Do big companies like Boeing produce every component for their planes? Or do they buy many parts from small businesses? Competition is not the only relationship between big and small companies, cooperation is more than common. American jobs would be lost with the discontinuation of the bank. This is not the best time to experiment with employment, exports and economic growth.

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5 Different Jobs With An International Business Degree

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1. International Accountant

If you found accounting interesting during your business classes, you can pursue a career as an international accountant. This career usually involves obtaining an MBA in accounting in addition to your bachelors of international business. This position is very important as standard GAAP doesn’t apply in every country. The company will need your expertise in knowing the various tax laws and currency exchanges as well as how to read and create financial statements for other countries’ laws and specifications

2. Import/Export Compliance Specialist (Or Customs Compliance)

This job is found in both the federal government and private sector. You could also be an independent contractor and work for several companies. A compliance specialist maintains the compliance of imports and exports within regulatory law, both domestic and international. In addition, you would need to make changes as needed to stay within the regulatory laws. The most lucrative jobs are found within the federal government.

3. International Economist

Economists study the market, they analyze, examine trends, and make projections. An international economist does this on an international level and not just domestically. Companies in the international market or those looking to enter it will use an international economist to watch the trends, examine economies, and make projections about the places they are interested in doing business with or continuing. This is not an entry-level position but you can work your way up to one from starting in finance or marketing within that organization.

4. Management Analyst

Also called a management consultant, these jobs are found everywhere domestically. They analyze company operations to look at efficiencies, examine profit margins, and study the company structure. With an international business degree, you can go beyond the domestic side and examine how the international segments of the company can be improved. This position often involves significant travel or living abroad as you will have to personally examine the segment of the company in order to analyze its function.

5. International Banking

For degree holders who have an interest in banking, you have some choices with an international business degree. You could work at a local bank with foreign accounts or at a foreign-owned bank that does business in your country.

After you complete your degree, you will have several different options on where you want to go in your career, from finance to banking to consulting. While many of these jobs need advanced degrees or specialization, they are still obtainable and lucrative.

Cost Savings: Worker Relocation CLICK TO READ

Many financial firms are relocating their employees away from the Big Apple in order to save on costs. Deutsche Bank plans to save $6billion annually by 2015 and relocating staff to their Jacksonville, FL office is just one critical step to this process. The convenience of a lesser stressful commute and larger living space is worth the 2 hour plane flight to New York City every once in a while. With a 40% drop in the cost of living neither employee nor employer is one to complain.

With job relocation on the rise, from expats to illegal immigrants in the United States, would one suspect Americans to begin taking jobs in Mexico? In light of the immigration debate over whether illegal immigrants are “stealing” US jobs, what if the roles were reversed? What if US citizens are actually being employed more and more by firms located in Mexico? It sure would save overhead costs for employers. Now there is some food for thought…

Post your comments below!

Source: WSJ

News from the USTR: TTIP Update from Brussels

Today, the United States Trade Representative Michael Froman addressed the Transatlantic Trade and Investment Partnership during his stay in Brussels.


“Today, the U.S. and the European Union are each other’s largest economic partners, with $2.6 billion dollars’ worth of goods and services flowing between us each day. We invest nearly $4 trillion in each other’s economies, creating the world’s largest investment relationship. And more than 13 million people owe their jobs to the transatlantic economic relationship. The U.S.-EU economic partnership is second to none.

“But we know that we can do more. We can do more for economic growth. We can do more to create jobs. We can do more to strengthen rules-based trade that supports the entire global trading system.

“And that is precisely why we launched the Transatlantic Trade and Investment Partnership, or T-TIP. Together with the Trans-Pacific Partnership, or TPP, and the work being done at the WTO to negotiate a multilateral Trade Facilitation agreement, a plurilateral Trade in Services Agreement (TISA) and an expansion of the Information Technology Agreement (ITA), we see T-TIP as an opportunity to raise the standards, to introduce new disciplines and ultimately to strengthen the multilateral trading system.

Read more here.

News from the USTR: Trans-Pacific Partnership (TPP) Negotiations

On July 25th, 2013, strong progress had been reported about the TPP negotiations that ended that same day. Japan was welcomed into the negotiations while TPP leaders hope to reach agreement by the end of the year.

The United States’ goal of this agreement is “to advance a 21st-century trade and investment framework that will boost competitiveness, expand trade and investment with the robust economies of the Asia Pacific, and support the creation and retention of U.S. jobs, while promoting core U.S. principles on labor rights, environmental protection, and transparency.”