1. 1 CHAPTER XXIV LOCATING PRODUCTS TO EXPORT & LOCATING EXPORT MARKETS  Why Export?  Product Considerations  Export Markets

2. 2 Why Exporting?  Participants in U.S. Export per Export Trading Company Guidebook of 1987  25% of U.S. exports by 50 companies  60% of U.S. exports by 200 companies  15% of U.S. exports by 24,250 companies  Number of U.S. manufacturers: 300,000 10%: Exporters 90%: Non-Exporters

3. 3 Why Exporting? Why Exporting?  A Profile of U.S. Importing & Exporting Companies by U.S. Census Bureau in 2009U.S. Census Bureau  287,800 exporting companies  Large companies with 500 or more employees 2.4% of exporters but 67.2% of export value  Small-&-Medium-sized companies with fewer than 500 employees 97.6% of exporters but 32.8% of export value

4. 4 Why Exporting?  High Export Concentration  Top 250 exporters: About 50% of total export value  Top 500 exporters: 59% of total export value

5. Why Exporting?  Exporters classified by Industry –Manufacturers: 59.9% –Wholesalers: 23.2% –Other exporters: 16.9%  Trade with Related Parties –35.9% of total export value –58% of total exporters exported to only one country –Only 0.4% exported to 50 or more countries 5

6. 6 Why Exporting?  Four purposes for exporting  Profit  Growth  Market Development  Market Diversification  Benefits obtainable from exporting of domestic products  Lowers per unit fixed cost  Increases product life cycles  Compensates for seasonal or geographical fluctuations  Defends domestic market from foreign competition

7. 7 Product Considerations Product Considerations  Specialize  Know the products  Start with local manufacturers  Start with manufacturers who have not established export channels  Start with manufacturers who are willing to modify products to meet foreign customers' needs

8. 8 Product Considerations  As a non-manufacturing exporter, when locating product for established foreign markets:  Find out what products are needed in foreign markets with which you are familiar.  Look for U.S. manufacturers who can supply products which your foreign customers want to buy  Yellow pages of telephone directories  Manufacturers' Registers or Directories of each State  Thomas Register of American Manufacturers  Internet

9. 9 Export Markets  All foreign nations which need or want U.S. products and a means to pay for them (demand)  Number of Nations of the United Nations (UN)UN  51 members in 1945  189: 2000  191: 2002 (Switzerland & Timor-Leste)  193: 2011 (South Sudan)

10. 10 Export Markets In locating export markets for domestic products  Look for markets having similar characteristics of your domestic buyers and users  Test exportability of your products by advertising in Export USA (replaced Commercial News USA in September 2013), USDC, International Trade Administration.Export USA  Utilize international trade and economic statistics  Participate in Catalog & Video Exhibitions at the U.S embassies or trade offices of U.S. Dept of Commerce  Participate in Trade Shows and Trade Missions

11. Top 15 U.S. export markets for 2010 72% of total U.S. exports  1.Canada  2.China  3.Mexico  4.Japan  5Germany  6.United Kingdom  7.South Korea  8.France  9.Taiwan  10.Brazil  11.Netherlands  12.India  13. Singapore  14. Venezuela  15. Saudi Arabia 11

12. Top 15 U.S. import sources for 2010 75% of total U.S. imports  1. China  2. Canada  3. Mexico  4. Japan  5. Germany  6. United Kingdom  7. South Korea  8. France  9. Taiwan  10. Ireland  11. Venezuela  12. Saudi Arabia  13. Nigeria  14. India  15. Italy 12