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#### Mississippi International Trade News

**September 2003**

Published by the:

U.S. Export Assistance Center

Mississippi World Trade Center

Tel: 601/965-4130

Fax: 601/965-4132

Jackson, MS 39201

<bill.morris@mail.doc.gov>

##### Feature Article

**Driving Global\
Economic Growth**

##### U.S. Manufacturing Firms Innovate to Stay Competitive

by the ITA Office of Public Affairs

**The manufacturing sector in America is the foundation on which much of
the rest of our economy is built.** U.S. Census Bureau statistics
reflect that fact. Manufacturing generates 16 percent of gross domestic
product and directly employs 18 million Americans, 14 percent of all
workers.

What these statistics do not capture, however, is the extent to which
manufacturing drives the rest of the economy. Much is made of the rise
of the service sector over the last 20 years. It is an area of
undeniable strength and competitive advantage in the U.S. economy. But
we should not overlook the fact that some of the growth in the service
sector has come from outsourcing functions that American manufacturers
used to perform for themselves.

Internal shipping departments used to be commonplace. In the mid- to
late-1980s, most major manufacturers handled all of their own shipping
and customs brokerage. With that went a variety of administrative and
compliance costs. Today, we see major transportation logistics firms
providing these services at much lower costs. The ability to offer such
services on a scale no manufacturing firm could match has helped U.S.
manufacturers and exporters to reduce their costs significantly.

The shift from in-house to outsourcing has also meant that jobs and
statistics that used to show up in the manufacturing column in our
national income accounts now show up under the heading of services. In
the past two decades, the U.S. economy has experienced significant
restructuring. The process of restructuring has strengthened our ability
to compete worldwide in both manufacturing and services. The
efficiencies gained through that restructuring represent hard-won
results that continue to drive increases in productivity, which
ultimately affects our standard of living.

The service sector is dependent on the key user of services---our
manufacturing base, as well as other segments of our economy. In the
absence of a strong manufacturing sector, our service businesses would
suffer as well. The fact that recent slowdowns in the service sector
coincided with similar slowdowns in manufacturing activity is no
accident. In short, manufacturing activity drives economic growth beyond
the 16 percent of GDP reflected in Census Bureau statistics, which
underscores the importance of understanding the competitive challenges
our manufacturing sector faces in global markets.\
\
Does the fact that our manufacturing sector faces challenges mean that
this important sector of the economy is unable to compete in world
markets? The World Economic Forum\'s 2002 *Global Competitiveness
Report* answers that question directly. The report named the United
States as the most competitive economy in the world. The report
highlighted America\'s significant levels of research and development,
innovative business community, strong venture capital markets, and
commitment to innovation and technological advancement.\
\
Each factor cited by the World Economic Forum\'s report underscores the
basic strength of our manufacturing sector. Throughout our history, the
manufacturing sector has seized opportunity and pursued the latest
technology. In fact, manufacturing accounts for approximately two-thirds
of private research and development expenditures. This has resulted in
sustained technological innovations and tremendous productivity gains,
which in turn have fueled higher wages, living standards, and economic
growth.\
\
That record of innovation, both in products and manufacturing processes,
and in business and financial management, has yielded continuing gains
in productivity. With rising productivity, the business pages of our
newspapers generally focus on jobs lost and take that as a weakness in
American manufacturing. What that reporting overlooks is that
productivity gains are the most fundamental indicator of national
economic health.\
\
The recession in manufacturing began at least 18 months before the
recession overtook the economy as a whole. The sharp decline in economic
growth in Asia following the 1997--998 financial crisis translated into
a sharp fall in demand for the capital goods that represent areas of
U.S. manufacturing excellence. The 40 percent appreciation of the U.S.
dollar from 1997 to 2001 reflected the underlying strength of the U.S.
economy, but it also put American manufacturers under increasing
pressure both in the competitiveness of their exports and the
competition they faced here at home. Indeed, the fact that Europe and
Japan trailed the United States into the recession and still have yet to
recover (e.g., European economic growth in 2002, without the
contribution of a growing British economy, was 0.3 percent) has meant a
stiff challenge for American manufacturers that relied on those markets
for a share of their own growth.
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##### Upcoming Events

##### Dominican Republic Video Conference

##### September 30, 2003

On September 30 at 1:00 pm at the Eagle Ridge Conference Center in
Raymond, Mississippi, the U.S. Export Assistance Center will be hosting
a videoconference with the Commercial Service office of Santo Domingo.
All who are interested are invited to attend. The scheduled agenda
follows:

Subject Matter:

Current opportunities for Mississippi Agribusiness, Construction &
Engineering, Travel & Tourism, and Manufacturing Interests in the
Dominican Republic

• Overview of Dominican Republic Best Markets

Presenters - Dominican Republic FCS Staff

• Review of Opportunities Regarding Highlighted Topics: Packaged &
Processed Foods, Farm Commodities, Farming Techniques, Aquaculture,
Timber Management, Forestry Products, Hard & Soft Lumber, Building and
Construction Materials, Chemical Products, Architecture and Engineering
Services, Travel & Tourism Attractions, Farm Machinery, and
Manufacturing Machinery and Equipment

Presenters - Dominican Republic FCS Staff

• Review of Brand Recognition, Market Perceptions & Preferences of U.S.
versus European and Latin American Brands

Presenters - Dominican Republic FCS Staff

• Question & Answer Session

Presenters - Mississippi Clients and USEAC Partners

• Summation

Presenters - Open to the Floor

Cost for attending the videoconference is \$25.

Call the U.S. Export Assistance Center for registration and directions
at 601.965.4130, or email <Jackie_McLaughlin@mail.doc.gov>.

##### 

##### Basics of Exporting Seminar in Laurel

##### October 22, 2003

Would you like to know if your product or service is exportable? Would
you like to know where you can find international buyers? Do you ask the
questions, how will I get my product there and will I get paid?

These questions and more will be answered for you. To be successful in
the global marketplace, you need the skills and knowledge to identify
real business opportunities and know how to follow through in delivering
your product or service to a foreign buyer.

Seminar topics include International marketing, finance, and logistics.
Bob Satter of Page and Jones will discuss international logistics. Learn
if air freight or ocean freight is more cost effective for your
products. Learn what documents are required and understand what
transportation responsibility and costs are associated.

CJ Tennant of Union Planters Bank will lead international finance.
Understand the risks and costs associated with Cash in Advance, Open
Account, Letters of Credit, and Documentary Collections. Learn the role
of a pro forma invoice and how to minimize discrepancies and amendments.
Other speakers include those from Hinds International Trade Center, U.S.
Department of Commerce, and the Mississippi Development Authority.

The seminar will be held from 1:00 pm to 4:00 pm, Wednesday, October 22.
To register, call Janie Boykin at 601-477-4235.

##### Noteworthy News Highlights

# 

# International Trade Club of Mississippi Luncheon- On September 4th the International Trade Club attendees welcomed Gene Harris, U.S. Commercial Liaison Office, who spoke about the opportunities available with the Inter-American Development Bank. The IDB is the largest source of development finance specifically destined for Latin America. The goals of IDB focus on poverty reduction and social equity, sustainable development and growth, modernization of the state, competitiveness, and integration. For more information about the IDB, go to [www.iadb.org](http://www.iadb.org/). 

#  

# Internship Search

# United States Export Assistance Center

• Would you like to spend time on the inside track of international
business?

• Would you like to gain real work experience that can provide an
essential edge for entering today's job market?

# Export Assistance Centers are part of the U.S. and Foreign Commercial Service, an extensive network of trade specialists located throughout the world devoted to assisting U.S. companies expand their international business presence. With offices in 105 cities throughout the U.S. and in more than 150 cities in 83 countries, we're strategically placed to help U.S. firms realize their export potential.

Our trade experts assist U.S. firms in exporting their products/services
by providing comprehensive counseling and advice, through timely and
accurate intelligence regarding foreign markets, by identifying
qualified international buyers and representatives, by advocating on
their behalf, and by providing comprehensive solutions to whatever
challenges they may encounter.

International Business Internship Opportunities are available for
qualified applicants with the U.S. Department of Commerce, U.S.
Commercial Service in Jackson, Mississippi.

• Internships available year around

• All majors

• Volunteer opportunity for possible course credit

• Job referrals available for project completion

# REQUIREMENTS

• Full-time or part-time graduate or undergraduate student

• Good interpersonal & writing skills

• Ability to work up to 20 hours per week

• No criminal record

• U.S. citizen

# RESPONSIBILITIES

• Counseling -- responding to telephone inquiries from exporters
regarding trade requirements, regulations, documentation, country
issues, etc.

• Promotional -- contacting exporters to determine interest in overseas
trade shows, export leads, seminars and other trade activities

• Administrative -- preparation of correspondence and entry/maintenance
of company profile in databases

• Special projects -- including assistance with seminars, trade shows
and official visits

For additional information or to apply, contact:

Bill Morris, Director

175 East Capitol Street, Suite 255

Jackson, MS 39201

Phone: 601-965-4130

Fax: 601-965-4132

<Bill.Morris@mail.doc.gov>

[www.export.gov](http://www.export.gov/)

##### 

##### Preview Events -- call us for plans or details

DEC 2004 Scholarship Award

National DEC Conference

DEC Member Search

Jiangsu Province Visit

Plans for International Trade Finance Conference