Über die Autorin bzw. den Autor

Dr. Carl A. Nelson is a specialist in international trade with more than 40 years of global experience in government and private business. An author of seven books about international trade and economics, he is a professor of International Business at the School of International Management in San Diego, CA.

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IMPORT/EXPORT

The McGraw-Hill Companies, Inc.

Contents

Chapter One

International trade is the exchange of goods and services across national boundaries. Exports are the merchandise individuals or nations sell; imports are the goods individuals or nations purchase. By these methods, products valued at more than US$11 trillion worldwide are exchanged every year. When we as consumers enjoy fresh flowers from Latin America, tropical fruits in the middle of winter, or a foreign car, we are participants in, and beneficiaries of, international trade. International trade is not a zero-sum game of winners and losers; it is a game in which everyone wins.

Global Opportunities

Major changes that took place in the twentieth century have had a significant effect on international trade in the new century and have provided unprecedented opportunities.

The age of globalism has brought about worldwide distribution, the Internet, satellite communications, and speedy transportation systems. People all over the world seek the same luxuries and standards. They see things and, naturally, they want them.

Globalization is no longer a buzzword; it is a reality. National governments have a large stake in its outcome because this change affects their societies. As the process goes forward, the need for harmonizing interstate laws becomes more serious. Therefore international trade cannot be a static process, and businesses that make products and attempt to sell them across borders must constantly adjust.

U.S. Deficits and Surpluses

Figure 1.1 shows the history of American trade since the earliest days. You will note that it was not until about 1975 that trade began its chronic fall into significant deficits. Nevertheless, as Figures 1.2 and 1.3 show, the United States is at or near the top of the list in merchandise trade and commercial services. That is, America has the largest surpluses and deficits of any nation in the world, which means there is a lot of profitable merchandise moving around the world and you can have a part of that.

What Is an Import/Export Business?

The questions most frequently asked by interested parties are: "What is an import/export business?" and "What organizational methods do traders use?" The answers depend on whether you work for a manufacturer or are independent (for more detail see Chapter 6).

If you own or work for a manufacturer of an exportable product, your company can create and organize its own export department. Today, however, many manufacturers outsource their export function to import/export companies.

An independent import/export business is an individual or company that acts as an international middleman (a unisex term); that is, it sells foreign-made products (imports), sells domestic (home country) products in other countries (exports), or does both. See the Glossary at the back of book for an extensive list of the most commonly used trade terms.

Every manufacturer that is not already exporting can be a potential client for you; there are still many businesses all over the world that do not export. According to the U.S. Department of Commerce, less than 10 percent of all American manufacturers currently sell their products overseas.

Whether you run your business from your home or as an expansion of an existing domestic manufacturing firm, an import/export business often requires little capital investment for start-up. Of course it can grow into a giant business with billions of dollars in annual sales. An import/export business also offers great opportunities to travel and to enjoy the prestige of working with clients from all over the world.

Where Do Importers and Exporters Trade?

Everyone is trading internationally. And once trade begins with one country, new opportunities spring out of nowhere. A business person who successfully starts importing very soon learns of exporting opportunities and vice versa. In any case, a whole lot of money can be made. More than $11 trillion wouldn't be traded worldwide if it weren't profitable to do so.

The World Trade Organization (WTO)

Created on January 1, 1995, the World Trade Organization (WTO), with equal status alongside the World Bank and the International Monetary Fund, has strengthened global trade. It is the only international organization that deals with the rules of trade between nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world's trading nations and ratified by their parliaments. As of 2005, it has over 149 national members making it easier to do business across borders by reducing tariffs and harmonizing laws and practices that are barriers to trade. The WTO's goal is to help producers of goods and services, exporters and importers, conduct their business.

Cyber Trading

There is no president or congress of the Internet, and it has no boundaries; therefore, cyber communication is the international trader's connection without barriers (see Chapter 4).

World Trade Centers Association (WTCA)

Founded in 1970, the World Trade Centers Association (WTCA) is a not-for-profit, nonpolitical association dedicated to the establishment and effective operation of world trade centers as instruments for trade expansion. To date, the WTCA membership about 300 centers in 75 countries. These world trade centers service more than 750,000 international affiliated businesses.

World trade centers, dedicated to providing services to facilitate international trade, are located in over 170 cities with about 100 more in the planning stages. In other words, they are in virtually every major trading city in the world. To learn more about world trade centers, see Chapter 9.

Trade Integrations

Trade integrations are preferential arrangements between two or more nations to facilitate commerce across borders.

North America

The North American Free Trade Agreement (NAFTA)—the world's largest trading bloc—is expanding to include many of the nations of the Caribbean basin and South America.

Europe

The European Union (EU) formed a single internal market that has resulted in the removal of essentially all physical, technical, and fiscal barriers to the exchange of goods and services within the European common market. The EU is now becoming larger to include some of the newly independent states of Central and Eastern Europe. Some of the changes agreed to are:

• A common value-added tax

• Deregulation of transportation

• Establishment of minimum industrial and safety standards

• Broadening of the EU-wide bidding process for government procurement

Asia

The Asian/Pacific Basin nations of Australia, New Zealand, Japan, and the "Tigers" (South Korea, Taiwan, Hong Kong, Singapore, and Thailand) are the countries that today present the greatest trade opportunities. Trade in this region has expanded faster than any other part of the world.

China and India

China and India are the two most populated countries and are making special progress in international trade. They are worthy of focused research—they are doing business!

Africa

The latest world trade emphasis is focused on the countries of the African continent, particularly those south of...