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									  Globalization for U.S.
  Companies
                                                  USFCS Brazil




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


19 Nov 02        Crocker, U.S. Embassy Brasilia        1
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
    issues?
   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.
    companies?
   What other resources should U.S. companies consider?
   Questions.

19 Nov 02               Crocker, U.S. Embassy Brasilia               2
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, HomeWarehouse.com, 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.


19 Nov 02              Crocker, U.S. Embassy Brasilia               3
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
       competition.




19 Nov 02                         Crocker, U.S. Embassy Brasilia                                    4
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.


19 Nov 02                 Crocker, U.S. Embassy Brasilia                      5
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.



19 Nov 02                 Crocker, U.S. Embassy Brasilia                   6
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.


19 Nov 02                 Crocker, U.S. Embassy Brasilia                 7
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).
Additional:
 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.
19 Nov 02                Crocker, U.S. Embassy Brasilia              8
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.

19 Nov 02               Crocker, U.S. Embassy Brasilia                 9
Other Resources for U.S.
Companies
                                                                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. www.usatrade.gov
 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
  www.stat-usa.gov.

19 Nov 02               Crocker, U.S. Embassy Brasilia               10
  Questions?
                                                        USFCS Brazil



            Contact Info:
            Dan Crocker
            Commercial Section
            U.S. Embassy, Brasilia
            55 (61) 312-7249
            daniel.crocker@mail.doc.gov
            dcrocker@alum.mit.edu




19 Nov 02              Crocker, U.S. Embassy Brasilia       11

								
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