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									  Globalization for U.S.
                                                  USFCS Brazil

            How the U.S. Government
            helps American companies
            make more money overseas.

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Table of Contents
                                                               USFCS Brazil

   Who I am and what I do.
   What is the current trading climate?
   What macro factors do U.S. companies need to pay attention to?
   Why should most U.S. companies pay attention to world trade
   What challenges do U.S. companies face specifically?
   What U.S. Government resources are available to help companies
    face these challenges?
   How does the U.S. and Foreign Commercial Service help U.S.
   What other resources should U.S. companies consider?
   Questions.

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Who I Am and What I Do
                                                              USFCS Brazil

 Dan Crocker LFM ‘97 - MBA, MS, MIT.
 Currently Commercial Attaché at U.S. Embassy, Brasilia.
 Private sector work experience with Schlumberger, Brenco, Hewlett-
  Packard,, and Webvan.
 Public sector work experience at U.S. Embassy, Santo Domingo.
 Fluent in Portuguese, Spanish, and French.
 Have lived and worked in Angola, France, Italy, Dominican
  Republic, and Brazil.
 Top-secret clearance from U.S. Government.
 BSE Princeton ‘89, MA Foreign Affairs University of Virginia ‘95.
 Married with two children.

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Current Trading Climate
                                                                                            USFCS Brazil

 Generally good, in spite of global recession.
 U.S. Government is committed to the principle that free trade leads to sustainable
  economic development.
 U.S. companies should NOT assume that most countries will subscribe to further
  trade liberalization.
 U.S. companies need to be equipped with country-specific knowledge.
      Example one: giving a penknife as a gift to a South American business partner.
      Example two: hedging against a Mexican peso devaluation in the mid-90’s.
 But most importantly: the U.S. is open for business, and that forces most U.S.
  companies to be global competitors.
      U.S. trade barriers are low.
      U.S. dollar is strong.
      Multiple examples of U.S. industries dying within a short time period due to international

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What Macro Factors should
U.S. Companies Watch?
                                                                      USFCS Brazil

 Trading Blocs or WTO?
 Bilateral or regional trade agreements?
 Longitudinal measures that show sustainable economic
  development, e.g. per capita GDP (PPP) and Gini coefficient.
 Regional security problems - few countries are islands.
 Internal security problems.
 Basic financial solvency measures (read The Economist).
But remember:
 Macro is long term by definition.
 All probabilistic - can’t assume, for instance, that internal strife will
  lead to a financial crisis that will hurt your business.

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Why Care About Trade?
                                                                     USFCS Brazil

   Your upstream supply chain may benefit from sourcing globally.
   Even if it doesn’t, your input costs may be sensitive to global prices.
   Internet boom math: 280 million is 5% of 6 billion.
   You can buffer domestic swings in demand by selling overseas.
   You may need to produce in a country to sell there. Boeing China
   You may find producing overseas cheaper. Shoes
   You may save on downstream transportation costs. BMW
   No blank slates: you may already be producing overseas.
   There’s not much protection for you in the U.S. market against
    foreign competition.

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Specific Challenges for
U.S. Companies
                                                                   USFCS Brazil

   Tariffs, duties, quotas.
   Horrific tax regimes on goods and services.
   Obscure regulations on labeling, measures, etc.
   Lackluster support for intellectual and private property rights.
   Regulations that effectively protect domestic industry or family
    dynasties at the expense of the consumer.
   Byzantine judicial procedures when things go wrong.
   Large-scale corruption.
   Other countries that will go to great lengths to promote their
    domestic industry for public contracts.
   Misunderstandings due to language or culture.

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U.S. Government Solutions
                                                               USFCS Brazil

U.S. Government is committed to free and fair trade.
Sleeves Rolled Up and On the Ground:
 U.S. Foreign and Commercial Service (USFCS).
 International Trade Administration (ITA).
      Market Access and Compliance (MAC).
      Trade Development.
      Advocacy Center.
   U.S. Trade Representative (USTR).
   U.S. Department of State.
   U.S. Treasury.
   Export-Import Bank, Overseas Private Investment Corporation.
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U.S. and Foreign
Commercial Service
                                                                 USFCS Brazil

Mission: promote export of goods and services from the U.S.,
  particularly by SME’s, and protect U.S. business interests abroad.
 Organizationally housed within U.S. ITA, Dept of Commerce.
 100 U.S. Export Assistance Centers throughout U.S.
 Commercial Officers/Attachés are diplomats assigned to U.S.
  embassies in over 80 countries.
 Extensive foreign national staff with solid industry experience.
 Some cost recovery.
 Track record - help solve problems, identify new markets.
 We offer expertise and access.
 Performance measure - success stories.
 Variety of publications and tailored services.

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Other Resources for U.S.
                                                                USFCS Brazil

 Generally: USFCS is a good starting point.
 For financing: look at Ex-Im Bank, OPIC. Very case-specific, so
  best to contact local USEAC.
 Multilateral lending agencies, especially for infrastructure or
  development: World Bank, Inter-American Development Bank,
  Asian Development Bank.
 Best to develop working relationship with Commercial Officers in all
  countries in which you’re doing business. Be prepared for changes.
 Already in a bind? Contact us.
 Have no idea whether your widget is in demand in Elbonia? Check
  out our sector-specific analyses, available through the web at

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                                                        USFCS Brazil

            Contact Info:
            Dan Crocker
            Commercial Section
            U.S. Embassy, Brasilia
            55 (61) 312-7249

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