TRADE MANUAL:THE UNITED STATES OF AMERICABy: Sam Matheson

INTRODUCTION TO THE USA

• Language: English

• Population: 315 million (estimated)

• Currency: American Dollar

• Current President is Obama

• Top Trading Partners are: China, Mexico and Canada

• Two Mountain ranges: the Appalachian Mountains and Rocky Mountains

• They have 6 time zones across the country

• The 5 most common jobs: Elementary school teachers, Cashiers, Retail salesperson, and general managers.

• In 2008, eight of the top 10 international brands/companies were American

TOP IMPORTS AND EXPORTS FROM CANADA INTO THE USA

Top 10 Imports• Oil

• Machines, engines, pumps

• Plastics

• Wood

• Electronic equipment

• Gems, precious metals, coins

• Paper

• Aluminum

• Aircraft, spacecraft

• Vehicles

Top 10 Exports• Vehicles

• Machines, engines, pumps

• Electronic equipment

• Oil

• Plastics

• Medical, technical equipment

• Iron or steel products

• Aircraft, spacecraft

• Iron and steel

• Furniture, lighting, sign

POST SECONDARY INSTITUTIONS

• The US is well known for their incredibly developed and competitive Colleges and Universities

• Below is a list of the top 15 post secondary institutions in the US listed by Forbes magazine:

1. Sanford University2. Pomona College3. Princeton University4. Yale University5. Columbia University6. Swarthmore College7. United States Military Academy8. Harvard University9. Williams College10. Massachusetts Institute of

Technology11. University of Pennsylvania

12. Brown University13. Amherst College14. University of Chicago15. Duke University

RESOURCES IN THE UNITED STATES

• Some natural resources the United States has to offer include: • coal, copper, lead, molybdenum, phosphates, rare earth elements, uranium,

bauxite, gold, iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, and timber

• The top three resources that the US uses to trade are: Coal, Timber and oil

• They also have over 491 billion short tons of coal, which is 27% of the world’s access to coal

• The third resource the United States is known for is their timber as they have around 747 million acres available to be forested

INTERNATIONAL TRADE AGREEMENTS

• The US has many different trade agreements implemented with many different countries around the world

• There are only two that involve the US, Canada and Mexico

• NAFTA - between Canada, USA and Mexico, implemented in January 1994

• Canada-US Free Trade Agreement (CUSFTA or just FTA) - Between Canada and the US, signed on October 4th, 1987

• The US also has memberships within: • The World Trade Organization (WTO), joined January 1st, 1995,• The World Economic Forum which is an independent non-profit organization,• The Organization for Economic Cooperation and Development (OECD) on April

12th, 1961, as well as• The World Bank Group and the International Monetary Fund

MARKETING

• When marketing in the US do not use promotional techniques that are false or make claims that are misleading about the product, just be truthful

• This applies to both media and print advertising

• If your upselling your product in a commercial, you cannot use another brand name and say your product is better, you must simply refer to the other company as “the leading or next leading brand.”

• If you are advertising or selling food products you must know the information that must be stated in the advertising of the product

• Below are a few references to use for gathering general marketing information:• http://www.canadabusiness.ca/eng/page/2732/• http://

www.inspection.gc.ca/food/labelling/food-labelling-for-industry/eng/1383607266489/1383607344939

• http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/02776.html

INFRASTRUCTURE (PART 1)

• Transportation in the USA is very broad and there are many different ways to travel from one point to another in the US

• Some ways to travel include: Cars, buses, rail cars, trains, subway, aviation, highway infrastructure, etc…

• Communication in the United states is just as broad as the transportation, from cell phones with texting or calling, home phone, email, social media, online chat rooms, letters, or postage mail these are just the main ways there are others as well

• You can have many different ways to connect with who you need to talk to

• When communicating remember to use a warm and welcoming greeting, be polite and punctual, make eye contact, be yourself, and be willing to have future meetings

INFRASTRUCTURE (PART 2)

• There are many different accommodations you can use in the US, like: Bed & Breakfasts, hostels, hotels, and motels

• Each differ in their own ways from some being very comfortable and business like to more cost conservative

• Some common hotel or motel chains in the USA are: Travelodge, Quality Inn, Ramada, Super 8, Howard Johnson, Motel 6 and many more

• There are many different foods in the US from cultural style foods: Thai, Vietnamese, Japanese, Chinese, Mexican… to fast food restaurants, McDonalds, Burger King, Wendy’s

• Also some popular non fast-food restaurants would include: Olive Garden, Chili’s, Popeye’s, Applebee’s and many more

• These restaurants could be used to hold business meetings at, and you can most often book separate rooms if you intend to keep these conversations from others in the restaurant

HEALTH CARE AND SAFETY• The US health care system is paid for by each patient as they have only

personal plans, no state coverage where as we have the Ontario Health Insurance Plan (OHIP Health Card)

• There are many options to buy travellers insurance, which is very useful as most people do not know the exact extent of medical costs, and if anything happened to make someone have to go to the hospital the costs would be into the thousands and much higher depending on medical attention is needed.

• Safety in the United States is widely monitored by the Department of Homeland Security• They deal with all the imports/exports within the country and ensure nothing illegal is being brought/smuggled/shipped into/out of the country

• Their website has information for businesses or individuals on how to prepare for natural disasters

BUSINESS AND FINANCIAL SERVICES

• The US Department of state website has many useful links and information for business start-ups and visas for employees

• They have links to the contacts you might need for any specific business questions and helpful answers to common questions asked by many business people travelling into the US

• The US has many different financial services available by many different banking institutions. They include loans, credit cards, and assistance with planning savings for the future

• Some helpful links can be found below:• http://www.usfsc.com/• http://www.ey.com/US/en/Industries/Financial-Services• http://

finance.siemens.com/financialservices/us/contact/pages/contactform_nwa.aspx

FOREIGN EMBASSIES

• In the US there are only 5 countries that do not have an embassy in the United States• Bhutan, • Cuba, • Iran, • North Korea, and • Taiwan

BUSINESS PRACTICES IN THE USA

• Business attire for men in the US is a dark or grey coloured suit with a tie, and a white or light blue dress shirt will keep a professional appearance,

• For women a suit that is dark or grey coloured with a white or light blue dress shirt underneath or professional looking dress with a jacket will do

• When introducing yourself or others use one’s title (if appropriate), or simple just Mr., Ms., or Mrs. When greeting a firm handshake is common and will last usually 3-5 seconds, and maintain good eye contact

• It is typical for business gatherings could be held over breakfast, a luncheon or dinner

• Before the meal it’s common to have regular social talk then business conversation comes at or after the meal

BUSINESS APPOINTMENTS AND GIFTING

• Business appointments should be made with the secretary of whomever you wish to have a meeting with; if they are CEO or a top manager at the company, otherwise it should be made directly with the person you wish to meet with

• These dates and times for appointments and meetings should be kept in an agenda or on a calendar so you will NOT forget them!

• In the US it is very important you be on time; preferable even 10-15 minutes early for interviews and appointments

• Gift giving is not a common practice in the US and can be seen and taken as bribery in certain companies, however letters and notes thanking them for their time or with positive remarks on their product/services are commonly acceptable

• Instead of a gift maybe you could invite your partners to a meal and talk over partnerships and trades

LANGUAGE AND COMMUNICATION• In the US it is fairly common for nonverbal communication, for example, if

someone nods their head or shakes it from side to side it stands for yes or no

• Also if your across the room and someone uses their index finger and beckons you it simply means they want you to come over to where they are

• The other nonverbal gestures you might see in a business encounter would be a smile, hug, or handshakes, which are just friendly welcoming gestures

• Below is a reference to a page of words not to be used in any business situation as they are referred to as curse or swear words and are very unprofessional to have them come up in conversations• http://www.youswear.com/index.asp?language=American+english#.U4VFcLAU-Uk

ADDITIONAL INFORMATION

• When meeting with business partners, always ask before lighting a cigar or cigarette as some places it’s illegal to smoke indoors and other times it could be bad for your business partner’s health

• And after the meal don’t chew on toothpicks or straws, it is very unprofessional

• Also, if there is a line anywhere, be patient and wait your turn.

• Are a way of talking over issues that have arrives and there are specific ways you can talk to try and resolve them, being described as follows: • Competing (or Aggressive), • Collaborating (or Cooperative), • Avoiding, Compromise, and • Accommodating (Conceding).

AGE AND FAMILY STATISTICSAge Range (Years

old)Percent of Total US

PopulationUnder 5 6.55 to 17 17.5

18 to 24 9.925 to 44 26.645 to 64 26.4

65 and older 13.0

General Age Groupings (Years old)

Percent of Total US Population

16+ 78.818+ 76.021+ 71.662+ 16.2

• The average household income in 2012 was $51 371 and the per capita income of families in 2012 was $27,319

• The US literacy rate for 2013 was 99%• In the US there are many possible media marketing opportunities, from radio or TV

commercials, to newspaper and magazine advertisements, or billboards on the side of the interstate highways

ADVERTISEMENTS

• When advertising within the USA, the laws state that the ad must be: truthful, it cannot be deceptive or unfair, and there must be evidence if it’s being compared to another product

• If you are advertising to children or their parents you must follow the regulations in the truth-in-Advertising Standards Act

• Also, there are special rules and regulations outlines in the Children’s Online Privacy Protection Act and food advertising to children and adolescents

• When companies are producing and marketing “green” products they must claim whether the packaging or product itself is “green” and have sufficient scientific evidence to support the claims

• Also, Companies that offer health products must support their marketing claims with solid evidence and proof

ADVERTISEMENTS

LOGISTICS

• Logistics is the process of organizing of the storage of raw materials, products or services

• It is also responsible for the process of shipping these materials and services to their destination

• Logistics can give one company large advantages over others as it allows them to be able to have an organized warehouse and be able to fast and efficiently sort and ship specific parts to the desired locations

DISTRIBUTION• A freight forwarder is a company or firm that organizes and arranging the

shipping of products for the seller

• They often will include services like: preparing all necessary documents to export, warehousing, packaging, Item tracking, booking cargo space, cargo insurance, and filing insurance claims

• Below is a chart showing the costs to mail parcel from Thamesford, Ontario to Washington D.C

Method CostExpedited parcel (4 business days) $50.91

Air N/AExpress Post (3 business days) $83.18

Priority mail (2-3 days) $311.10

REFERENCES (PAGES 1)

• http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CDAQFjAB&url=http%3A%2F%2Fwww.trade.gov%2Fmas%2Fian%2Fbuild%2Fgroups%2Fpublic%2F%40tg_ian%2Fdocuments%2Fwebcontent%2Ftg_ian_003364.pdf&ei=D3d7U4qGFrLP8QHD8YDADw&usg=AFQjCNGHXbGl_32p9K1z9dXCfXlZcl7b1g

• http://www.freeworldmaps.net/download/united-states.html

• http://www.aaawindows4less.com/blog/

• http://www.usa.gov/Agencies/federal.shtml

• http://www.timetemperature.com/tzus/time_zone.shtml

• http://www.worldsrichestcountries.com/top_us_imports.html

• http://www.worldsrichestcountries.com/top_us_exports.html

• http://www.state-flags-usa.com/

• http://www.forbes.com/top-colleges/list/

• http://www.indexmundi.com/united_states/natural_resources.html

• http://www.businessinsider.com/10-ways-us-competitive-advantage-2013-6

• http://prague.usembassy.gov/american-universities-fair-2012.html

REFERENCES (PAGE 2)

• http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/nafta-alena/index.aspx?lang=eng

• http://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/us-eu.aspx?lang=eng

• http://www.wto.org/english/thewto_e/countries_e/usa_e.htm

• http://www.weforum.org/world-economic-forum-usa

• http://www.canadabusiness.ca/eng/page/2732/

• http://www.dhs.gov/transportation-systems-sector

• http://www.whitehouse.gov/our-government/executive-branch

• http://onlinelaw.wustl.edu/tips-for-communication-social-etiquette/

• http://www.theweedblog.com/marijuana-raid-assisted-by-homeland-security-border-patrol-customs/

• http://www.vapartners.ca/how-marketing-automation-is-the-death-by-marketing/

• http://www.discoveramerica.ca/usa/travel-information/accommodations.aspx

• https://www.healthcare.gov/what-if-i-dont-have-health-coverage/

• http://www.dhs.gov/how-do-i/by-type

REFERENCES (PAGE 3)

• http://www.flags-and-anthems.com/flag-bhutan.html

• http://www.flags.net/CUBA.htm

• http://www.raindance.org/windsor-detroit/5-reasons-we-defend-iranian-filmmakers/

• http://www.worldatlas.com/webimage/flags/countrys/asia/nokorea.htm

• http://finalfantasy.wikia.com/wiki/File:Flag_of_Taiwan.gif

• http://www.state.gov/e/eb/cba/faq/26084.htm

• http://onlinelaw.wustl.edu/tips-for-communication-social-etiquette/

• http://geography.about.com/od/politicalgeography/a/nodiplomatic.htm

• http://www.cyborlink.com/besite/us.htm

• http://www.tofugu.com/2012/05/21/how-to-be-a-baka-gaijin-in-the-house/

• http://blogs.democratandchronicle.com/conxion/?p=1462

• http://www.platformcreator.com/getting-clear-about-your-platform-agenda/

• http://blog.idratheagency.com/2013/02/interior-design-business-tip-confirm.html

• http://matadornetwork.com/abroad/10-common-gestures-easily-misunderstood-abroad/

• http://www.negotiations.com/definition/negotiation-styles/

REFERENCES (PAGE 4)

• http://www.deptofnumbers.com/income/us/

• https://www.cia.gov/library/publications/the-world-factbook/geos/us.html

• http://www.mamamia.com.au/social/gun-reform-ads-red-riding-hood-banned/#RpplioPDB0TYj7dS.97

• http://smallbusiness.chron.com/importance-business-logistics-30906.html

• http://www.canadapost.ca/cpotools/apps/far/personal/findARate?execution=e3s3

• http://www.businessdictionary.com/definition/freight-forwarder.html