© Raymond A. Hopkins 2017, corrected publication 2018 2017

Raymond A. Hopkins, Grow Your Global Markets, https://doi.org/10.1007/978-1-4842-3114-2_5

5. Making Contacts and Finding Customers

Raymond A. Hopkins

(1)Chandler, Arizona, USA

Think globally, act locally.

—Akio Morita, cofounder of Sony (1921–1999)

It’s true: you really can master global markets. And here’s how. Home-country firms generally have U.S. government agencies, lead producing and sales generating programs, and non-government support to turn to for assistance in growing your global markets. Prospective global business firms can tap the resources of the U.S. government and its various departments for assistance.

U.S. Government Sources

The U.S. Department of Commerce actively support U.S. exporters while other departments (e.g., Bureau of Industry and Security, and Trade Adjustment Assistance and the Trade Compliance Center) play supporting roles:

Trade Information Centers are the first comprehensive stop for companies seeking U.S. government export assistance. International Trade Specialists are available with expertise in specific regions and industry sectors are prepared to provide (1) information on locating and using government export programs; (2) guidance through the export process; (3) directions for market research, statistics, and trade leads; (4) information addressing domestic and overseas trade events and activities; (5) sources of public and private export financing; and (6) references to state and local trade organizations.

Export Assistance Centers – For assistance with exporting and conducting business abroad, U.S. companies can contact offices known as Export Assistance Centers (EACs) located in almost 100 U.S. cities and Puerto Rico to assist small- and medium-sized companies. The EACs combine the trade and marketing expertise and resources of the U.S. Commercial Service along with the finance expertise and resources of the Small Business Administration (SBA) and the Export-Import Bank (Ex-Im Bank). EACs work closely with state and local government as well as private partners to offer companies a full range of expertise in international trade, marketing, and finance.

Overseas Posts – Commercial officers of the U.S. Commercial Service, working onsite in 67 countries, gather information about trends, actual trade leads, and identify prospective foreign partners through an array of specialized marketing and due diligence programs. As a result, they have a personal understanding of local business practices and local market conditions, enabling them to provide information about foreign companies, agency-finding services, and market research. Additionally, they can make appointments with key buyers and government officials representing companies adversely affected by trade barriers.

Trade and Development Agency – The U.S. Trade and Development Agency (USTDA) promotes economic growth by funding project preparation and facilitating the participation of U.S. businesses in the planning and execution of infrastructure development projects in partner countries. USTDA’s International Business Partnership program has been a catalyst for opening new markets for U.S. companies, large and small, looking to expand sales overseas. Sectors that represent the greatest opportunity for growth in U.S. exports include energy, transportation, and telecommunications. Small consulting and engineering firms define projects, offer specific guidance, and evaluate technical and economic impact in addition to competing for USTDA-funded feasibility studies, training, and technical assistance activities. Connect with the USTDA at its headquarters and overseas offices.

The Advocacy Center – is a unit of the U.S. Department of Commerce International Trade Administration that works closely with U.S. Commercial Service domestic Export Assistance Centers and Commercial Offices within U.S. diplomatic missions overseas, to promote fair and equal treatment of small, medium, and large U.S. contractors and their effort to win competitive foreign government public sector contracts. The Center, via its staff of liaison officers, with links to Multilateral Development Banks (The World Bank, Inter-American Development Bank, African Development Bank, European Bank for Reconstruction and Development, and the Asian Development Bank) works to increase the proportion of invitations to bid that U.S. contractors win. Contact the center at 14th Street & Constitution Avenue, N.W.—Rm. 10020, Washington, DC 20230 at telephone (202) 482-3896.

Minority Business Development Agency (MBDA) – Minority businesses have a competitive advantage in global trade based on their cultural ties, language skills via this government agency dedicated to their growth, and competitiveness in global markets. That said, the MBDA provides minority businesses technical assistance, access to capital, large contracts, and new market opportunities worldwide. Its more than 40 Minority Business Development Centers help minority business enterprises (MBEs) prepare international marketing plans and promotional materials and to identify needed financial resources. Contact the Minority Business Development Agency, Office of Business Development, U.S. Department of Commerce, 1401 Constitution Avenue, Washington, DC 20230; telephone (202) 482-1940.

District Export Councils – (DECs) are local organizations comprised of business leaders with export skills and international business expertise available to firms in their respective regions. A total of 59 DECs affiliated with the U.S. Commerce Department’s Export Assistance Centers, the U.S. Foreign Commercial Service, and the National DEC, exist throughout the country with a total membership of approximately 1,500 export-ready members available to assist small- and medium-sized businesses in their local communities establish or increase export sales while creating jobs. The DECs engage in a variety of activities among which are mentoring local businesses in exporting, identifying sources of export financing, advocating trade policy and legislation supporting the U.S. export sector, providing export training and education through Export University programs.

The U.S. Small Business Administration – helps Americans start, build, and grow businesses through an extensive network of field offices in cities throughout the United States. It partners with public and private organizations to offer small businesses and fledgling exporters several no-fee services such as those offered by the following:

  • Small Business Development Centers – SBDCs supported by headquarters and SBA regional offices provide business consulting and low-cost training services that enable small businesses to open and profit from international markets. For the address and phone number of the SBA office nearest you and the SBA Office of International Trade see https://www.sba.gov/tools/local-assistance/sbdc and https://www.sba.gov/oit .

  • Service Core of Retired Executives (SCORE) is a membership of businessmen experienced in business and international trade that can guide and mentor entrepreneurs and fledgling global businesses in developing and implementing basic export marketing plans that show where and how to market their products and services in the international marketplace. In addition to offering the services of mentors, SCORE offers free business tools, templates, and inexpensive or free workshops and webinars. SCORE’s 320-plus chapters hold local events and workshops across the United States.

  • Export Legal Assistance Network (ELAN) is a nationwide group of attorneys in private law firms that help new exporters learn the legal aspects of international trade. Attorneys in the network offer a free initial consultation to provide a reasonably detailed overview of the legal issues your firm may face in exporting to international markets. Basic contractual requirements, taxes and regulations, and introductory information on other necessary resources, such as banks, freight forwarders, insurance companies, and state and federal programs to expand exports will be explained in a consultation that will last long enough to identify the legal issues challenging your firm. Thereafter, you are free to handle the next steps yourself or to hire an attorney to complete them for you. To contact ELAN, contact your regional ELAN coordinator via www.exportlegal.org .

The U.S. Department of Agriculture Foreign Agricultural Service (FAS) operates with a global network of 93 offices covering 171 countries staffed by agricultural attachés and locally hired agricultural experts. The FAS expands and maintains access to foreign markets for exporters of U.S. agricultural products. The FAS supports four State Regional Trade Groups (SRTG) assisting U.S. food and agricultural businesses with the entire exporting process. In addition, the FAS partners with 75 cooperator market development groups representing a cross-section of the U.S. food and agricultural industry and manages a toolkit of market development programs to help U.S. exporters develop and maintain markets for hundreds of agricultural products. The FAS, SRTGs, and market development groups work to assist agri-businesses learn the fundamentals of marketing their products through trade shows and missions to make U.S. agriculture a global business.

State and Local Government Sources

State economic development agencies, departments of commerce, and export promotion agencies often provide an array of services to exporters, with many states maintaining international offices in major markets that work closely with U.S. Commercial Service offices. In many parts of the country, county and city economic development agencies also have their own export assistance programs that typically include the following:

  1. Trade missions organizing trips abroad enabling exporters to call on potential foreign customers.

  2. Trade shows organizing and sponsoring exhibitions of state-produced goods and services in overseas markets.

  3. Executive visits with foreign government officials and business leaders to bolster economic and diplomatic relationships with other countries.

  4. Education in the form of group seminars or individual counseling sessions that helps exporters analyze their foreign market potential and orients them to export techniques.

State development agencies also cooperate with the National Association of State Development Agencies a national, nonprofit, trade association that provides members with a wide variety of training services, workshops, technical assistance, and data analysis in the area of economic development.

Both avenues, public and private, offer rich possibilities for locating customers and generating sales.

Non-Government Sources

Non-government sources offer a full range of trade solutions enabling exporters to smoothly complete their transactions, and mitigate risk and other concerns that might arise in executing their export transactions.

Commercial Banks – have long been involved in international finance and the import-export industry. The global nature of commercial banking makes possible the reliable transfer of funds, and distribution of valuable economic and business information about customers and capital markets around the globe. With foreign branch banking and their presence in local markets, they offer a full range of trade solutions enabling exporters to smoothly complete their transactions and mitigate risk and other concerns that might arise in executing import/export transactions. Consultation, guidance, seminars, even publications covering particular countries and their business practices, are frequently offered free of charge since the banks derive their income from loans and the following export-related services: trade finance (e.g., letters of credit, and managing foreign receivables), foreign exchange (converting and trading foreign currencies), corporate finance (loans to cover purchases of raw materials, machinery parts, inventory and/or payroll) and miscellaneous banking services (corporate checking accounts, currency-specific credit cards, and lock boxes).

Export Intermediaries – as reflected in the following list of players, perform a multitude of services that can often take full responsibility for the export end of the business, relieving the manufacturer of all the details except filling orders. Export intermediaries such as Export Marketing Companies specializing in your product line—Export Marketing Companies (EMCs) and Export Trading Companies (ETCs) can launch a firm’s entry into international markets without the resource commitments (time and finances) required of a firm new to global markets, providing the firm is willing to trust brand development to others. The manufacturer maintains control over the export process while benefiting from the knowledge, expertise, and connections of such intermediaries. The EMC/ETC, working on the basis of commissions, salary, or retainer plus commission, assumes responsibility for finding overseas buyers, shipping products, and collecting payment, a potentially profitable approach for a small- to medium-sized manufacturer until such time as the manufacturer is able to assume marketing, sales, and distribution tasks on its own.

Export Merchants – purchase products directly from the manufacturer, mark, and package the goods using their own specifications and preferences, selling these products overseas and assuming the risk.

Export Agents – represent the manufacturer, act under their own name, and generally contract for two years or less.

Export Commission Houses – as agents for the export buyer, seek out manufacturers of products requested by importers. The commission house handles the majority of the transaction, thereby relieving both the exporter and the importer from a great deal of work.

Export Brokers – bring buyers and sellers together and are removed from handling or distributing the exported goods.

Buyer for Export – is a representative of large consumers of industrial goods, such as foreign government purchasing missions.

Export Management Companies (EMCs) – perform services that may include foreign market research, marketing strategies, foreign distribution, establishing a logistics system, managing and training a foreign sales force, shipping, and export information and details, arranging financial aid, and foreign language translation services.

Export Trading Companies (ETCs) – organizations designed to facilitate the export of U.S. goods and services.  They serve either as a trade intermediary, providing export-related services to producers or as an organization set up by the producers themselves.

Freight Forwarders – manage overseas shipments of goods to foreign ports in return for a fee or product discount.

World Trade Centers ( WTCs ) and International Trade Clubs – are nonprofit, nonpolitical associations that stimulate trade and investment opportunities for businesses looking to connect globally and prosper locally. WTCA membership includes over 320 WTCs in almost 100 countries with over 750,000 affiliated companies. Both organizations feature presentations and educational opportunities by experts enabling the local business community to acquire practical skills and long-term strategic contacts for advancing international business.

Chambers of Commerce and Trade Associations – Chambers of commerce are local organizations that promote, protect, and represent the interest of businesses of all sizes in the community. They exist in many forms and at various geographic levels—local, area, regional, and international. Many exist with one full-time staff member, but thousands exist as volunteer entities. Trade associations, known as industry trade groups, business associations, or sector associations, are organizations founded and funded by businesses that operate in a specific industry. Depending on the interests of their membership and available resources, each provides sophisticated and extensive services for members interested in exporting.

American Chambers of Commerce (AmChams ) – advance the interests of American business overseas. They are voluntary associations of American companies and individuals doing business in a particular country, as well as firms and individuals of that country who operate in the United States. Worldwide these associations include more than 117 American Chambers of Commerce in 103 countries. Through four regional organizations in Asia, Europe, the Gulf Countries, Latin America, and the Caribbean, AmChams pursue trade policy initiatives, make available publications and services, sponsor a variety of business development programs, and monitor major foreign markets for the latest news and information about local trade opportunities, activity, real and potential competitors.

International Trade Consultants and Trade Advisers – depending on their specialty, global region, or country, can assist manufacturers on many aspects of exporting. Although possibly lacking expertise in specific products, international trade consultants and trade advisers can perform a variety of services to ensure a smooth introduction of manufacturing operations, product, and service entry into foreign markets. Many large accounting firms, law firms, and specialized marketing firms, acting in a consulting capacity, are knowledgeable about foreign government regulations, contract law, and regulations, thus enabling exporters to minimize risk, tax, and legal exposure. It is particularly important to carefully evaluate their expertise to ensure your specific global business needs and requirements are adequately addressed. Since consultants tend to be expensive, it is best to first maximize publicly funded sources of advice before turning to consultants and trade advisers.

Take advantage of these private and public U.S. sources that offer help to American firms in locating customers. Firms elsewhere may have their equivalents. Both avenues, public and private, offer rich possibilities for locating customers and generating sales. Given that many of these sources of support cost nothing but your time, take advantage of them and don’t go at this process alone. You and your team need to make the first move toward seeking market entry guidance!

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
18.216.151.164