Slide 1
The Importance of International Business and Export Counseling Assistance from the U.S. Commercial Service
Make Locally and
Sell Globally!
Marcus Verner
Oklahoma Export Assistance Center
U.S. Commercial Service
tel: 405-608-5302
fax: 405-608-4211
Oklahomacity.office.box@trade.gov
www.export.gov
Slide 2
- 1. JOBS
- businesses create 64 percent of the net new jobs in America of the past 15 years. It is important to help these firms increase their exports.
- than 10 million U.S. jobs depend upon U.S. exports.
- one of every five factory jobs—20% of all jobs in America’s manufacturing sector—depend on exports.
- in jobs supported by exports receive wages 13 to 18 percent higher than the national average. High tech industry jobs supported by exports pay even more.
Why Export?
Slide 3
- 2. Market Growth
- 95% of the world’s consumer’s live outside of the U.S. borders.
- domestically means they are reaching just a small share of potential customers.
- 2010, U.S. exports reached a record $1.83 trillion, an increase of 16.6 percent over the previous year.
- markets for U.S. exports in 2010 were Canada, Mexico, China, Japan, United Kingdom, Germany, South Korea, Brazil, The Netherlands, Singapore.
Why Export?
Slide 4
Why Export?
- 3. The World is Your Market!!!
- 2010, U.S. exports to countries where there was an FTA in effect exceeded $472 billion, accounting for roughly 41 percent of U.S. exports.
- United States has Free Trade Agreements with 20 countries:
Australia, Bahrain, Canada, Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Israel, Jordan, Mexico, Morocco, Nicaragua, Oman, Peru, Singapore,
- Korea and Panama just passed Congress October 12, 2011.
Slide 5
Places to Start (Basic Resources)
- Commercial Service
- Department of Commerce
- Federal and Local Resources
- the above websites for additional info.
- Basic Guide to Exporting
Slide 6
Oklahoma Export Assistance Center
- link to worldwide Commercial Service resources & experts
- with
- research
- entry strategy
- questions
- export information
- time is paid for so don’t hesitate to call!
- I don’t know the answer—I’ll help find it!
Slide 7
- information on all services & market research
- Key Service
- Partner Search (IPS)
- Market Research
- News USA (www.cnewsusa.com)
- Shows
- Missions
Commercial Service Programs
Slide 8
Overview of an Export Process
- Determination/Research
- you know this customer?
- will affect the payment terms you offer
- may affect whether or not you take the sale
- TO KNOW YOUR CUSTOMER!
- need to know:
- they want
- they want it
- they want it delivered to
- they can pay
Slide 9
International Marketing
- Exporting
- Management Companies (off-site export department)
- Trading Companies (demand driven)
- exporting
- Exporting
- Representatives/Agents
- Sales
- marketing
Slide 10
Legal & Economic Issues
- Risk – political, currency, banks
- and Quotas
- Licensing, Import Licenses for your customer
- government trade sanctions, “Specially Designated Nationals”, etc. – www.ustreas.gov/ofac
- Inspections
- Goods
- Settlement-Jurisdiction - contracts under Vienna Convention CISG (Contracts for the International Sale of Goods)
Slide 11
Method of Payment
- you know this customer?
- new customer - probably payment in advance or Letter of Credit
- this out in the Pro Forma Invoice
- L/C – send instructions on how you want it opened
Slide 12
Don’t Forget…
- the Pro Forma- define period of validity
- terms(Cash, Draft, L/C, Credit)
- of Sale (Incoterms)
- date of shipment (from receipt of order)
- description of the goods (unit price)
- of all elements added to the price
- costs, insurance
- unique reference number you can use to refer to this Pro Forma
Slide 13
Shipping Costs
- with your freight forwarder
- you call, know:
- of shipment
- frame
- if you want insurance
- 2010
Slide 14
- responsibilities of buyer and seller
- of common ones in Basic Guide
- are your friend - experienced foreign buyers will understand them
- avoid confusion
- the book! Incoterms 2010
Incoterms
Slide 15
Export Documentation
- to Basic Guide
- Invoice
- Export Declaration
- List
- of Lading/Airway Bill
- of Origin
- Certificate
- Certificate
- Invoice
- License
Slide 16
Types of Partners
- Representatives
- Alliance
- Retailers
- Venture
- Trading Company
Slide 17
Issues of Concern
- of the territory - exclusive?
- to provide service
- period
- lines
- & trademark integrity and policing
Slide 18
Finding Partners
- Shows - both in the U.S. and overseas
- exporters of complimentary products
- - directories, your own web site may attract them, search engines
- missions
- Service programs
- associations, journals
Slide 19
Motivating Partners
- Visits (Understanding Culture)
- (money talks)
- sales promotion and packaging
- materials
- Visits
- and Incentives
- terms - improve as relationship lasts
- foreign partners to domestic meetings
- shows - work together
Slide 20
In Summary
- business is important
- local resources!
- potential markets & choose a manageable number of countries
- your company in those markets
- relationships/sells
Make Locally and
Sell Globally!
Slide 21
Questions……Thank you!!!
Marcus Verner
Oklahoma Export Assistance Center
U.S. Commercial Service
tel: 405-608-5302
fax: 405-608-4211
Oklahomacity.office.box@trade.gov
www.export.gov