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Who cares about the U.S.-China trade deficit?

By Ray Hays, www.rayhays.com

According to data from the U.S. Census Bureau:

  • In 1990, the U.S. trade deficit with China was $10.4 billion….
  • In 2000, the deficit was $83.8 billion…
  • In 2010, the trade deficit was $273.0 billion. 

In your opinion:

  1. Where will we be in 2020?
  2. How can we reverse course?
  3. And finally… Was Adam Smith Chinese?

[Excerpt from Smith, 1776, book IV.] … Nothing, however, can be more absurd than this whole doctrine of the balance of trade, upon which, not only these restraints, but almost all the other regulations of commerce are founded. When two places trade with one another, this [absurd] doctrine supposes that, if the balance be even, neither of them either loses or gains; but if it leans in any degree to one side, that one of them loses and the other gains in proportion to its declension from the exact equilibrium.

 

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Get on DEC: U.S. Exports = U.S. Jobs

 

By Ray Hays

Member, Arizona District Export Council

www.rayhays.com

 

Did you know that nearly 2,000 international executives across the U.S. volunteer their time to promote American exports?

U.S. exports build U.S.  jobs, and the District Export Council is a leading voice for U.S. export promotion. The  District Export Council (DEC) is actually a network of 56 regional DECs in the U.S., which are affiliated with the U.S. Export Assistance Centers (USEACs) in their local markets. Staffed by trade specialists of the U.S. Commercial Service, the purpose of each USEAC office is to assist local U.S. companies to expand their global exports. The DEC serves as the USEAC’s team of private sector partners.

Regional DECs are non-profit organizations, which serve as a volunteer advisory group for the U.S. Commercial Service in the promotion of U.S. exports. DEC members are international executives, who are vetted by the U.S. Commercial Service and appointed by the Secretary of Commerce. DEC members’ responsibilities include advising on U.S. trade policy, attending U.S. export events and serving as volunteer consultants for small and medium businesses who want to export products and services.

At a national level, the guiding strategy for the DEC is the National Export Initiative, an Executive Order, under which the U.S. Commercial Service and other federal agencies are tasked with doubling U.S. exports within five years. For more information on the National Export Initiative, see the following link: http://export.gov/nei/index.asp

At a regional level, each DEC may have different areas of focus, based on key exports in their home markets. As international business leaders in their communities, the DEC members are able to leverage their knowledge, contacts and other resources to help promote exports from local companies.

What are some of the activities of the National District Export Council?

The National District Export Council (www.districtexportcouncil.com) is focused on advocating for trade policy to drive U.S. exports. This involves interfacing with key leaders in the Federal government to address important issues in trade policy. Additionally, the National DEC works with leadership of the regional DECs to develop a consistent and cohesive strategy for export promotion. The National DEC’s Steering Committee is made up of six standing sub-committees, each focusing on different functions in export promotion.

How do the Regional DECs promote U.S. exports?

Regional DECs are typically comprised of 20 to 30 members, which are also divided into different sub-committees. Their grassroots export promotion activities include:

  • Export University – A national initiative of the DEC and U.S. Commercial Service to offer a trade education to small and medium companies wishing to start or expand their export activities. Local DEC members participate as subject-matter experts, and help coach the Export University attendees. Regional DECs also organize other trade education events, often coordinating with local institutions or community organizations.
  • Trade Events – DEC members help organize and execute outbound trade missions to key international markets. These events typically enable U.S. exporters to meet with possible clients and partners in their target markets. Other export promotions may include participation in trade shows, speaking engagements and export tours for foreign buyers.
  • Legislative Affairs – DEC members typically visit the local offices of elected officials, including state government representatives and members of Congress, to help educate representatives and their staff on international business and export promotion.

How do DEC members offer a unique voice for export promotion?

Staff members of the U.S. Commercial Service and other federal agencies are limited on what they can say and do in the support of export promotion. Due to budgetary constraints, political pressure and agency policies, federal employees have boundaries. For example, federal employees are very limited in fund-raising for export promotion programs and events. However, DEC members as citizens and business leaders have much more latitude to seek sponsorships, express views on trade policy and other activities that may be inappropriate for a federal employee.

How can you get involved?

  • Attend DEC events in your area – On your local DEC website or social media site, you may find calendars of local speaking events, networking receptions and education opportunities.
  • Sponsor your DEC – Get your company involved in the DEC as a sponsor. With modest sponsorship contributions, your company can help to build exports in your community and build your brand as a local leader in international business.
  • Join your local DEC – If you are an international executive, consider volunteering to become a DEC member. Contact your local DEC for information on the application process.
  • Spread the News – Regional DECs need to get the news out into local business community, and word-of-mouth is a key component of this effort. Please share this article through email or social media with your network of business contacts.

Remember: U.S. exports build U.S. jobs!

Throughout our history, much of the U.S. economy was built on our strong base of export industries. As global business becomes more competitive and complex, trade education and promotion are critical for success. In this regard, the DEC is doing its part to support the American economy.

Participation in DEC activities is good for the economy, good for your business and good for your professional development. Make a decision to get on DEC and help drive American exports!

Helpful Links

National DEC website: www.districtexportcouncil.com

U.S. Commercial Service: www.export.gov

Blog on International Business:  www.rayhays.com

U.S. Commercial Service – Why it’s the best use of U.S. tax dollars.

By Ray Hays, www.rayhays.com

Surprisingly, many people in international business are unaware of one of the best and free resources for international trade, the U.S. Commercial Service (USCS). In my international business development activities, I estimate that 75%+ of the international partner deals have been done with the assistance of the USCS.

Simply put, the U.S. Commercial Service helps U.S. companies to build their business in worldwide markets. If you are a U.S. company involved in international business, or if you are a non-U.S. company seeking U.S. partnerships, I highly recommend that you review the link below.

What’s so great about it? First, it’s local and global. Most major metro areas in the U.S. have an Export Assistance Centers (known as USEACs). Your local USEAC is staffed with Commercial Service trade specialists, whose job is to promote and liaise with local U.S. companies who are seeking international expansion.

These local USEACs are linked to their counterparts at U.S. embassies and consulates around the world.

How can your company benefit? The USCS offers several free and paid services (very inexpensive). Here are some of the services that I have used:

* PARTNER SEARCHES: If a U.S. company is seeking an agent, JV partner, licensee, etc. in a specific country, the USCS will identify and contact prospective partners that fit your profile. The trade specialist will screen the partners based on your parameters (size, industry, locations, etc.) and will present you with profiles on the finalist prospects. You may then contact these prospects directly… or even better, the USCS will arrange an in-person meeting with the partner, and will often make available their facilities for the meeting.

* COMPANY BACKGROUND INFORMATION – If you want to complete thorough due diligence on an international partner (and you should), the USCS will complete a detailed background report on the company, which includes ownership, financial info, history and bank references.

* MARKET RESEARCH – The USCS has general industry reports for most sectors, which you can request free-of-charge. You may also request that the USCS complete a custom market research report for a fee.

* TRADE MISSIONS AND PROMOTIONAL EVENTS – The USCS will work with associations to organize industry-specific trade events, or they can also help with a single-company promotion.

Whenever I’m working on an international business project, the USCS is my first and favorite resource for information and help.

LINKS:

www.export.gov

www.buyusa.gov

Welcome to my International Business blog

 

People who know me understand that I am passionate about international business. The purpose of my blog is to share this passion and to build a repository of international business know-how, contacts, tips and humor.

I hope that you will come along for the ride.

Just another international guru...