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Why Citizen Diplomacy is Good for Business Vermont Council on World Affairs Lake Champlain Regional Chamber of Commerce August 18, 2010. Presentation to Cover:. America and the World: Where Opinion Stands Today
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Why Citizen Diplomacy is Good for BusinessVermont Council on World AffairsLake Champlain Regional Chamber of CommerceAugust 18, 2010
Presentation to Cover: • America and the World: Where Opinion Stands Today • The Business Imperative: Success in the Global Economy • The Citizen Connection: Why Citizen Diplomacy Matters
“A climate of global cooperation is essential to our national security, our economy and our future.” – Tom Donohue
Favorable Opinions of the U.S.,2000–2008 Source: The Pew Global Attitudes, June 2008
Basically, we’re a cross between a good restaurant and an Italian coffee bar. We are not French and definitely not American. America is the police of the world. Don’t wear its uniform.
Favorable Opinions of the U.S.: Positive Change, 2008–2009 Source: The Pew Global Attitudes, July 2009
Favorable Opinions of the U.S.: 2009–2010 Source: The Pew Global Attitudes, June 2010
U.S. Influence on the World Note: Countries include Australia, Canada, Chile, China, Egypt, France, Germany, Ghana, Great Britain, India, Indonesia, Italy, Japan, Mexico, Nigeria, Philippines, Russia, South Korea, Spain, and Turkey BBC World Poll, 2010
Belief that US Influence is Mainly Negative BBC Poll 2010
Trust in Business to Do What’s Right Source: 2010 Edelman Trust Barometer
Why Business? • Touch more lives • Good at international relationships • Culturally attuned • Efficient • Credible
Key Trends Affecting Business • Economy • Technology • Globalization
Key Trends in Globalization • Trade • Investment • Tourism
US Exports 1989 – 2009 ($ billions) International Trade Administration 2009
Vermont’s Export Markets • Vermont's export shipments in first four months of 2010: +38.5% • Compares to national average of 21.0% • Ranks Vermont 6th nationally in export growth this year • Vermont exports of merchandise in 2009: $3.2 B • 963 companies exported goods from Vermont locations in 2007 • 86% were small and medium-sized enterprises with fewer than 500 employees • Largest markets: Canada ($1.5 billion), Hong Kong ($258 million), China ($221 million), Malaysia ($184 million), and Japan ($181 million) Source: International Trade Administration 2010
Trade and Employment • International trade supported 77,886 jobs in Vermont in 2006 • 18.7% of total jobs depend on trade, up from 10.5% in 1992 • Over one-quarter of all manufacturing workers in the state depend on exports for their jobs Sources: Business Roundtable, International Trade Administration 2010
Five million American workers earn a paycheck from the U.S. operations of foreign owned companies – GMI 2005
Foreign Investment in Vermont • 9,800 workers in Vermont employed by foreign-controlled companies in 2007 . • Foreign investment in Vermont was responsible for 3.7 % of the state's total private-industry employment in 2007. • Major sources of Vermont's FDI-created jobs in 2007: Switzerland, Japan, the United Kingdom, and Canada. Source: International Trade Administration 2010
Change In International Travel: 2000-2009 Worldwide Travel 31% 0% -9% Travel to America U.S. Travel Association, 2010
The Cost of Lost Travel to the U.S., 2000–2009 • Lost arrivals: 68 million • Lost spending: $509 billion • Lost tax revenues: $32 billion • Lost jobs: 441 thousand • Lost trade surplus: $270 billion Source: U.S. Travel Association
“As others see us” Positives • Opportunity • Freedom • Diversity • Creativity • Innovation • Benevolence • Negatives • Arrogant • Ignorant • Insensitive • Disrespectful • Exploitive • Self-centered
Business Leaders Say: Citizen Diplomacy Skills Are Needed 70% of CEOs, other top business leaders agree: “Research has shown that anti-American sentiment has grown in other countries in part due to what is viewed as arrogant and culturally insensitive behavior of Americans abroad. Since many thousands of Americans spend considerable time doing business elsewhere in the world, companies should ensure that their representatives outside the U.S. behave in a manner that builds understanding and respect for our country.” Source: BDA/Zogby International Study of American Business Leaders, July 2010
Contributions of Citizen Diplomacy • Deep cross-cultural experience • Best practices in protocol • Local community credibility • Youth appeal • Bilateral connections • Global networks
Vermont and The World • 32,978 passports issued to Vermonters in 2009, or, as a percentage of population: 5.30% (6th nationally) • In 2007-2008, 1,834Vermont students studied abroad, an 11.5% increase over the previous academic year. • During 2008-2009, 1,022 international students were enrolled in Vermont colleges and universities and contributed $28.9 million to the Vermont economy.
What Can You Do? • Tune in to the world
What Can You Do? • Tune in to the world • Get involved
What Can You Do? • Tune in to the world • Get involved • Learn about cultures
“How to Help Your Country whileyou’re traveling for Your Company”
What Can You Do? • Tune in to the world • Get involved • Cultural learning • Learn a language
What Can You Do? • Tune in to the world • Get involved • Cultural learning • Learn a language • Promote tourism andexchanges
What Can You Do? • Tune in to the world • Get involved • Cultural learning • Promote tourism and exchange • Learn a language • Influence policy