CHAPTER XXIV LOCATING PRODUCTS TO EXPORT & LOCATING EXPORT MARKETS

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

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. Why Exporting? • A Profile of U.S. Importing & Exporting Companies by U.S. Census Bureau in 2009 • 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. 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

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. 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. 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. 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 • 51 members in 1945 • 189: 2000 • 191: 2002 (Switzerland & Timor-Leste) • 193: 2011 (South Sudan)

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 Commercial News USA, U.S. Department of Commerce, International Trade Administration. • 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 • 5 Germany • 6. United Kingdom • 7. South Korea • 8. France • 9. Taiwan • 10. Brazil • 11. Netherlands • 12. India • 13. Singapore • 14. Venezuela • 15. Saudi Arabia

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