growing globally

Growing Globally

Maria Clara YepesDavid Noel

Agenda

• Industry overview• Reasons for going global• Planning to go global• Export/Import process overview

Industry Overview

It is a great moment to Export!

President Obama has launched the National Export Initiative

Industry Overview

“…Trade increased substantially over the decade, with exports up from $1.10 trillion in 2000 to

$1.83 trillion in 2010”

(SBA 2008 and Census 2010)

Exports

Industry Overview

Small businesses constituted 97.5% of exporters, and they accounted for 31.3% percent of the

total dollar value of goods export transactions

(ITA, 2008)

Exports

Industry Overview

US Top Export Markets (Goods)

1. Canada ($248.8 billion)2. Mexico ($163.3 billion)3. China ($91.8 billion)4. Japan ($60.5 billion)5. United Kingdom ($48.4 billion)

(U.S. Dept. of Commerce, 2010)

Exports

Industry Overview

Florida Top Trading Partners (FL-Origin)

(EFI, 2010)

1. Switzerland2. Brazil3. Canada4. Venezuela5. Colombia

6. Mexico7. Chile8. DR9. Paraguay10. Peru

Exports

Industry Overview

Florida Top Exports (FL-Origin)

(EFI, 2010)

1. Industrial Machinery2. Electric Machinery3. Pearls, Precious Stones

and Metals4. Air/Spacecrafts5. Optical/Medical

Instruments

6. Vehicles & parts7. Fertilizers8. Plastics9. Essential Oils,

Perfumery, etc.10. Toys, Games & Sports

Equipment

Exports

Industry Overview

In 2010, the value of imports increased to $2.3 trillion.

(Census, 2010)

Imports

Industry Overview

US Top Import Partners (Goods)

1. China ($364.9 billion)2. Canada ($276.4 billion)3. Mexico ($229.6 billion)4. Japan ($120.3 billion)5. Germany($82.6 billion)

(U.S. Dept. of Commerce, 2010)

Imports

Industry Overview

Florida Top Import Partners (Merchandise)

(EFI, 2010)

1. China2. Japan3. Colombia4. Mexico5. Costa Rica

6. Chile7. Brazil8. Honduras9. France10. DR

Imports

Industry Overview

Florida Top Imports (Merchandise)

(EFI, 2010)

1. Electric Machinery2. Mineral Fuel, Oil3. Vehicles & Parts4. Industrial Machinery5. Pearls, Precious Stones

and Metals

6. Knit or Crochet Apparel

7. Copper 8. Fish and Seafood9. Special Classification

Provisions10.Non-Knit Apparel

Imports

Reasons for Going Global

• Grow your business• Avoid changing domestic conditions• Access to lower cost structures• 95% of world population is outside the U.S.

Reasons for Going Global

“Companies that export grow 15% faster, pay 15% higher wages and are 12% more profitable”

(EFI, 2011)

Reasons for Going Global

• #4 state in total state-origin exports• #3 state in “high tech” exports ($15.1 B)• 1.3 million jobs supported (1 of every 5)• 14 deep water seaports• 19 commercial service airports

(EFI, March 2011)

Location, location, location!!!

Planning to go GlobalIdentify products/services

Identify foreign markets– Culture– Legal requirements– Economic, political or credit risk

Analyze how to sell in each market–What is your role?– Direct or indirect?

Planning to go Global

• Landed Cost Analysis• Break Even Analysis• Competitiveness Analysis

IS IT FEASIBLE????

Planning to go Global

1. Management commitment2. In-depth experience with the product or

service3. Capacity and capability to produce

international products or provide the service4. Ability to invest into the process

Critical Requirements

Process Overview• Product Coding– Schedule B– Harmonized Tariff Schedule

• Licenses– Bureau of Industry and Security (BIS)– US Customs and Border Protection (CBP)

• Logistics & Documentation– Freight Forwarders– Import Brokers

Process Overview

• Incoterms– Determine the TERMS OF SALE– Examples: EXW, FOB, CIF

• Payment Terms– Cash in advance– Letters of credit– Collections– Open Account

Questions?

Thank you!!

www.sbdctampabay.com813-905-5800