The International Trade Process Class One

2011 Top Exporting States 2 Source: TradeStats Express™ International Trade Administration, USDOC and Foreign Trade Division, U.S Census Bureau, USDOC

California Top Export Markets Source: TradeStats Express™ International Trade Administration, USDOC and Foreign Trade Division, U.S Census Bureau, USDOC

California’s Leading Export Industries Source: TradeStats Express™ International Trade Administration, USDOC and Foreign Trade Division, U.S Census Bureau, USDOC

U.S. Merchandise Trade Balance 5 Source: TradeStats Express™ International Trade Administration, USDOC and Foreign Trade Division, U.S Census Bureau, USDOC

U.S. Merchandise Trade Balance 6 Source: TradeStats Express™ International Trade Administration, USDOC and Foreign Trade Division, U.S Census Bureau, USDOC

Benefits of Exporting Increase profits Diversify risk Source at a lower cost Higher wages Adjust for seasonal availability Extend product lifecycle

California Export Opportunity 95.54% of the world’s consumers live outside the U.S. 70% of world’s purchasing power is outside the U.S. Many Companies Make Exportable Products Less than 1% of America’s 30 million companies export 58% of companies export to only one country 98% of U.S. exporters are SMEs (but represent less than one- third of the known export value of U.S. goods’ exports); 96% of California exporters are SMEs (Total 59,543 in 2010) Many Companies Have New-to-Market Export Potential

California Depends on Trade & Investment for Jobs 5.1% of California's total private-sector employment is supported by manufacturing exports 22.4% of manufacturing workers in California depend on exports for their jobs SMEs generated over two-fifths (46%) of California's total exports Foreign investment in California supported 4.7% private-industry employment (567,000 jobs in 2010)

Common Small Business Export Misconceptions I’m too small It’s too complicated It’s too risky It’s too expensive I cannot compete

Export Assistance Resources U.S. Commercial Service State Trade Offices U.S. Customs and Border Protection American Chambers of Commerce (AmCham) Foreign Trade Advisors/Trade Commissioners Bi‐national Chambers of Commerce Not‐for‐profit trade organizations World Trade Centers

USG Organizational Chart

Export Development Stages Build Export Capacity Global Bus. Management Develop Export Markets Global Marketing Make Sales & Get Paid Trade Finance Deliver the Goods Supply Chain Management