Download - 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