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