The International Trade Process

Class One

2011 Top Exporting States

2Source: 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

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

USDOC

U.S. Merchandise Trade Balance

6Source: 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