Tag: USA Trade Guide

Why Relationships Matter in Global Business

 

By Scott Ferguson

As Chief Executive Officer of an organization with a mission of growing trade, I often get asked a multitude of questions pertaining to the state of global commerce. The inquiries always revolve around the latest headline out of one country or another, or the most recent election, or just my take on the state of economic cooperation around the world.

But no matter the question my answer always stays the same: At the World Trade Centers Association (WTCA) we remain focused on one thing—our network.

This may seem selfish, or like we don’t care about the news. But this is not the case. Far from it. It is because the common thread that runs through our association of 300-plus members in nearly 100 countries, is stronger and more consequential than any one lurch in the ever-changing, seesawing nature of trade policy. Because our members often play a critical role in the local, regional and national economies where they are based, the WTCA and its membership roster are frequently in a position to bridge the divides that form from one administration to the next. Our relationships with one another are the bedrock of our organization. This network empowers each of us to continue to enrich our local communities, regardless of the coming or receding political storms.

Being a global organization made up of businesses as diverse as our members comes with challenges, for certain. But being able to call on fellow World Trade Centers from Bogota to Belfast, and Boston to Beijing, in a climate that often feels unstable, is the true value of WTCA Membership. And it is why now, more than ever, relationships matter.

Scott Ferguson is Chief Executive Officer of the World Trade Centers Association.

This article was originally published in the USA Trade Guide.

After Initial Export Success in Asia, How Do You Scale?

 

Tractus Asia’s business Inc.ubator service allows you to have dedicated sales, marketing or technical support staff in Asia to grow your exports cost effectively and minimize risk. The situation is typical. You make a commitment to sell into Asia, achieve some initial export success after attending regional trade shows, and then you sign-on dedicated distributors in one or more markets. But, exports plateau or don’t meet your growth expectations. What’s wrong? Asia is the world’s largest market for your product, but you are underwhelmed by the performance of your distributors. The markets you are servicing, such as China, might have complexities that are frustrating your customers. Or perhaps, you are unable to operate your business model in Thailand in the same way as you would in the U.S. because of regulatory issues. If you can’t operate with the same business model, what do you do?

The simple answer is to have ‘boots on the ground’ in key markets – dedicated sales, technical support, or business development staff to troubleshoot these issues. The problem is the cost. To capitalize on opportunities in multiple markets in Asia – China, India, and Southeast Asia – you would have to incorporate in each of your key markets, hire staff to support your distributors, agents and customers, as well as manage operating a micro-multinational business across Asia. Not only is the investment and operating cost prohibitive, but how can you mitigate the costs and risk of needing to exit a market should you not be successful? The cost of closing a company in Asia can be 2 to 3 times what it takes to incorporate, and can take years to unwind. How do you balance your need for an in-market presence to grow your business with the costs and risks of operating a new business up to 10,000 miles away across the Pacific?

Tractus’ business Inc.ubator service is the answer. As a business Inc.ubator client you leverage Tractus’ network of offices throughout Asia to cost effectively support your business growth and minimize risk. Tractus works with you to recruit needed talent – technical sales, business development, customer support or marketing – based on a clear understanding of your needs. We conduct interviews, reference checks, and administer standardized tests as required. We then recommend a short-list of two or three finalist candidates that you interview in collaboration with our senior managers and directors. Once a finalist is selected, Tractus acts as the legal employer arranging for salary and statutory benefits to be paid and assists you to manage their performance. Your new Asia-based staff, while legally a Tractus employee, is dedicated full-time to your business.

We provide office space, administrative support, and most importantly, oversight and guidance by one of our senior managers or directors. While your new staff reports directly to you, Tractus provides the needed indirect supervisory support to ensure they are not ‘out of sight and out of mind’.

Our clients come from a wide range of industry sectors and have leveraged Tractus’ business Inc.ubator to accelerate their market entry, scale their exports to key markets in Asia, and successfully grow their international business. Please visit our website, www.tractus-asia.com, review our case studies and learn how Tractus’ business Inc.ubator can propel your Asian growth strategy or contact us on inc.ubator@tractus-asia.com for more information.

SIDO Leads State-Federal Trade Partnership Initiative

The State International Development Organizations (SIDO), a national organization focused on supporting the international trade agendas of the U.S. states and territories, has taken a leading role in developing a State and Federal Export Promotion Coordination Working Group.

SIDO, an affiliate of The Council of State Governments, helps state international trade agencies better serve American exporters by sharing innovative ideas and resources, and developing policies that help more small businesses export. International trade and export promotion are integral components of state economic development strategies.

In testimony before the House Small Business Committee in 2017, Ann Pardalos, manager of the International Trade and Investment Office for the State of Missouri and a past president of SIDO, underscored the importance of the states and federal government working together to help U.S. small businesses start or increase their exports. “State trade agencies understand they cannot do everything by themselves, and we greatly appreciate the support and partnership of our federal trade partners,” she said. “Each one of our agencies play an important role in helping to secure that final sale.”

In particular, said Pardalos, the State Trade and Expansion Promotion (STEP) grant program is indicative of how state and federal programs can work together. “The STEP grant program has been an important bridge to increase the coordination and communication between state and federal trade agencies— particularly with the U.S. Small Business Administration and the International Trade Administration,” said Pardalos.

No one state trade office is exactly the same. Each state works with a unique set of state and federal resources including: U.S. Export Assistance Centers, Small Business Development Centers, and Export-Import Bank regional offices.

For more information, read the USA Trade Guide online.