CHAPTER XXXVI U.S. GOVERNMENT SUPPORTS FOR EXPORTS

1. CHAPTER XXXVI U.S. GOVERNMENT SUPPORTS FOR EXPORTS • U.S. the largest country of 193 countris • However, nearly 96% of the world’s consumers live outside the U.S. • 2/3 of the world purchasing power in foreign countries • U.S. small businesses need exports to increase sales and profit, to reduce dependence on the domestic market, to stabilize seasonal fluctuations 1

2. U.S. Government Agencies Supporting U.S. Exports • U.S. Department of Commerce • U.S. Department of Agriculture • U.S. Small Business Administration

3. U.S. Department of Commerce • The International Trade Administration of the USDOC provides export support services to promote exports of the U.S. products and services thru U.S. Commercial Service. (1)Export Counseling • U.S. Commercial Service’s experts in over 100 cities of more than 80 countries worldwide • Websites “export.gov” for US exporters & “buyusa.gov” for foreign buyers 3

4. U.S. Department of Commerce (2) Market Research Service • Do market research to learn its products’ potential and best possible foreign markets • Narrow the focus on two or three markets • Access U.S. Commercial Service’s Market Research Library containing industry and country specific 100,000 reports 4

5. U.S. Department of Commerce (2) Market Research Service (continued) • The Market Research Library includes • Country Commercial Guides (read latest “Doing Business In” guides) • Industry Overviews • Market Updates • Multilateral Development Bank Reports • Best Markets • Industry/Regional Report 5

6. U.S. Department of Commerce (3) Platinum Key Service • Tailored to the client's needs to: • Identify the best export markets • Locate valuable market research • Develop the most appropriate market entry strategy • Identify prospective agents, distributors, licensees, and other business partners • Develop marketing strategies • Understand regulatory and product standards in target markets • Fee-based ongoing service can last a year 6

7. U.S. Department of Commerce (4) Advocacy Service •  Provides government assistance for U.S. Exporters • vying for international contracts, • encountering trade/bureaucratic problems, or • encountering unfair trade practices in overseas markets. 7

8. U.S. Department of Commerce (5) Gold Key Matching Service • U.S. Commercial officer arranges one-on-one appointments with carefully selected potential business partners in a targeted export market. • Exporter receives • Customized market and industry briefings from U.S. trade specialists • Timely and relevant market research 8

9. U.S. Department of Commerce (5) Gold Key Matching Service (continued) • Exporter receives (continued) • Appointments with prospective trade partners in key industry sectors • Post-meeting debriefing from U.S. trade specialists and assistance in developing appropriate follow-up strategies • Help with travel, accommodations, interpreter service, and clerical support 9

10. U.S. Department of Commerce (6) International Partner Search Service • A U.S. firm provides its marketing materials and background on the company. • U.S. trade official interviews potential partners and provides the U.S. firm with a list of up to five pre-qualified partners. • U.S. firm saves valuable time and money by working only with pre-qualified international partners that are interested in selling a U.S. firm’s products and services. 10

11. U.S. Department of Commerce (6) International Partner Search Service (continued) • Receives complete contact information on key officers along with information on its size, sales, years in business, number of employees, and a statement from each potential partner on the marketability of your product or service. • Gets all this information in 30 business days 11

12. U.S. Department of Commerce (7) International Company Profile Service • Affordable, fast credit checks and background information on potential international buyers. • Provides: • A detailed credit report on a prospective overseas sales representative or partner in 15 days. • A listing of the company's key officers and senior management. 12

13. U.S. Department of Commerce (7) International Company Profile Service (continued) • Banking and other financial information about the company • Market information, including sales and profit figures, and potential liabilities • An opinion as to the viability and reliability of the overseas company or individual a U.S. firm has selected • An opinion on the relative strength of that company's industry sector in the target market. 13

14. U.S. Department of Commerce (8) Overseas Trade Mission • Official trade mission to foreign countries sponsored by the USDC to meet influential foreign business and government representatives. • USDC staff will identify potential buyers and arrange appointments in each country. 14

15. U.S. Department of Commerce (9) Overseas Trade Fair • Overseas trade fair to meet potential buyers face-to-face and also to assess the competition. • USDC creates a U.S. presence at the international trade fairs by having the U.S. Pavilions 15

16. U.S. Department of Commerce (10) Commercial News USA • A bi-monthly magazine advertising U.S. products and services. • Distributed worldwide through U.S. commercial posts to over 400,000 overseas agents, distributors and end-users in about 180 countries. 16

17. U.S. Department of Commerce (11) USA Trade Online • Managed by U.S. Census Bureau’s Foreign Trade Division • Access to export data for over 9,000 export commodities and import data for over 17,000 import commodities • Trade statistics using HS (Harmonized System) up to 10 digits & NAICS (N. A. Industry Classification System) up to 6 digits • Subscription options: One week, Monthly, Annual • Replaced National Trade Data Bank 10/1/2010

18. U.S. Department of Agriculture • Agricultural Products • Export programs offered by the U.S. Department of Agriculture's Foreign Agricultural Service (FAS) 18

19. U.S. Small Business Administration (SBA) • Office of International Trade (OIT,)of the U.S. SBA (http://www.sba.gov/oit) provides export information and development assistance: • Trade counseling • Training • Legal assistance and • Publications. 19

20. U.S. Small Business Administration (SBA) (1) U.S. Export Assistance Center • One-stop shop ready to provide small- or medium-sized businesses with local export assistance. • Small exporters receive personalized assistance by professionals from the USSBA, the USDC, the US ExIm Bank and other public and private organizations. 20

21. U.S. Small Business Administration (SBA) (2) Export Legal Assistance Network (ELAN) • International trade attorneys from the Federal Bar Association provide free initial consultations to small businesses interested in starting export operations. • An ELAN attorney helps a small exporter with export-related legal issues for his product or service • Initial consultation may include discussions on: • International Contracts • Agent and Distributorship Agreements 21

22. U.S. Small Business Administration (SBA) (2) Export Legal Assistance Network (ELAN) (continued) • Licensing Agreements • Intellectual Property Protection • Export Licenses • Domestic and Foreign Taxation • Foreign Corrupt Practices Act • Anti-Boycott Regulations • Pro Forma Invoices • Arbitration and Dispute Resolution • Customs and Tariffs • Letters of Credit 22

23. U.S. Small Business Administration (SBA) (3) Service Corps of Retired Executives (SCORE) • A nonprofit organization which provides small business counseling and training under a grant from U.S. SBA. • Free of charge to small businesses • SCORE members are successful, retired business men and women who volunteer their time to assist aspiring entrepreneurs and small business owners. 23

24. U.S. Small Business Administration (SBA) (4) Export Library • It provides information and resources to assist a small business entering and competing in the global marketplace. • Exporting for Small Business-World of Opportunity (www.sba.gov/whyexport/) • Explore Exporting (www.sba.gov/content/explore-exporting) 24

25. U.S. Small Business Administration (SBA) (5) Export Publication • Breaking Into The Trade Game: A Small Business Guide to Exporting, Third Edition 25

26. Export’s Opportunities & Challenges • Los Angeles Times, February 21, 2011by Cyndia Zwahlen • Orly International Inc. • A 105-eomloyee firm in Van Nuys, California • Makes nail care products • Exports to 82 countries • Uses Gold Key Matching Service of U.S. Commercial Service costing $350 to $700 • Mexico and Canada: Top two countries for California’s small exporters

27. Export’s Opportunities & Challenges • Los Angeles Times, February 21, 2011by Cyndia Zwahlen (continued) • Challenges: • Finding trusted overseas partners to handle distribution • Protecting intellectual property, specially in China • U.S. Commercial Service • http://www.export.gov • Centers for International Trade Development of State governments