## Breaking Into The Trade Game:  A Small Business Guide

This publication is the product of a private/public sectorinitiative between the U.S. Small Business Administration andAT&T.  SBA's participation in this co-sponsorship activity doesnot constitute an expressed or implied endorsement of theco-sponsors' or participants' opinions, products or services (SBAAuthorization Code #93-13-4924710-1).  For more information onSBA's programs, call 1-800-8-ASK-SBA. 
Co-sponsored by the U.S. SMALL BUSINESS ADMINISTRATION AND AT&T
Breaking Into The Trade Game:  A Small Business Guide toExporting was produced under the guidance of G. A. Chiaruttini,Deputy Director, Office of International Trade, U.S. SmallBusiness Administration.  Special recognition is given to theEditorial Staff of Colleen Allen, Catherine Funkhouser andPatricia Lefevre, Export Development Specialists, Office ofInternational Trade.  A special thanks to Sonja Katharina Satlwho provided meticulous editorial support for this project. Kathy Parker and Sheldon Snook, Office of International Trade;Ray Williams, Regional International Trade Officer, Kansas City,Missouri; and Gene Brosterhous, International Trade Director,National SCORE Office, also provided additional editorialsupport.  Developing Your International Business Plan was writtenat the Lake Michigan College Small Business Development Center(SBDC) and International Business Center.  The materials andworksheets were adapted from the Oregon SBDC publication, "YourInternational Business Plan" at Portland Community College.  TheLake Michigan College SBDC is partially funded under CooperativeAgreement No. SB-2M-00092-09 by the U.S. Small BusinessAdministration.  Layout and cover design by SignalCommunications, Bethesda, Maryland.  
Breaking Into The Trade Game:  A Small Business Guide toExporting was produced by the U.S. Small Business Administrationwith the assistance of The Global Source, Inc.
Introduction
The U.S. Small Business Administration"s (SBA) Office ofInternational Trade (OIT) developed this Trade Guide as aninformation tool to assist American business developinternational markets.  This Guide will help answer questions andtake the mystery out of exporting.  The United States governmenthas committed enormous resources to help small businesses, likeyours, reach overseas markets.  Did you know that:-    the U.S. Small Business Administration (SBA) employs 76District International Trade Officers and 10 RegionalInternational Trade Officers throughout the United States as wellhas a 10-person international trade staff in Washington, D.C.; the SBA, through its Service Corps of Retired Executives(SCORE) program, oversees 850 volunteers with international tradeexperience to provide one-on-one counseling to active andnew-to-export businesses;the SBA made 348 loans nationally to exporters for more than$123 million in FY 1991 and 617 loans for more than $241 millionin FY 1992;
- the SBA supports over 900 Small Business Development Centers(SBDCs).  Some SBDCs have designated international trade centers;all SBDCs provide export counseling, referral and/or training; the SBA coordinates the Export Legal Assistance Network(ELAN), a nationwide group of international trade attorneys whoprovide free initial consultations to small businesses on exportrelated matters;    the U.S. Department of Commerce (DOC) InternationalTrade Administration (ITA) U.S. and Foreign Commercial Service(US&FCS)has 68 offices throughout the United States and 120 overseasposts, representing 95 percent of the world market for U.S.products and services;
-     the ITA in Washington, D.C. has industry-specificspecialists monitoring export opportunities for U.S. products andservices in every sector, from abrasive products to zippers;     the DOC sponsors 51 District Export Councils (DECs),comprised of nearly 1,700 business and trade experts available ona volunteer basis to help U.S. firms develop export strategies;    the DOC Minority Export Development Consultants Programsupports more than 107 Minority Business Development Centersthroughout the United States;
-     the U.S. Department of Agriculture (USDA) ForeignAgricultural Service (FAS) maintains a $30 million budget forexport promotion of U.S. commodities through trade fairs andother activities;     like DOC, USDA has a large group of countryspecialistsfocusing on a range of products from oilseeds to poultry;    the Export-Import Bank of the United States (Eximbank) hastrained specialists in 24 states and in Puerto Rico through itsCity/State program to provide export financing assistance tosmall businesses;
-   the Eximbank has financed over $11.3 billion of U.S. exportsin 1991, with 18.4 percent of Eximbank's authorizations going tosupport small business exports?  The SBA and a multitude of federal, state and local governmentagencies are ready to assist you in opening new avenues ofopportunity in the international marketplace.  With their help,and with the information contained in this guide, you will findthat access to international markets is possible and profitable.
Overview**A SMALL BUSINESS EXPORT SUCCESS STORY**
Small businesses throughout the United States have gainedinternational exposure and increased profits through exporting.Consider the case of Novi, Inc., a California-based business. Company President Michael Stoff tells his story:
"In November of 1986, when I began my business venture, Novi,Inc., I knew that my Tune-Tote (a stereo system for bicycles) hadthe potential to be successful in international markets. Although I had no prior experience in this area, I beganresearching and collecting information on international markets.I was willing to learn, and by targeting key sources forinformation and guidance, I was able to penetrate internationalmarkets in a short period of time.  One vital source I used fromthe beginning was SBA.  Through SBA I was directed to a programthat dealt specifically with business development -- the ServiceCorps of Retired Executives (SCORE).  I was assigned an advisorwho had run his own import/export business for 30 years. Theservices of SCORE are provided on a continual basis and are free.
"As I began to pursue exporting, my first step was a thoroughmarketing evaluation.  I targeted trade shows with a goodpresence of international buyers.  I also went to DOC forcounseling and information about the rules and regulations ofexporting.  I advertised my product in Commercial News USA,distributed through United States embassies to buyers worldwide. I utilized DOC's World Traders Data Reports to get backgroundinformation on potential foreign buyers.  As a result, I received60-70 inquiries about Tune-Tote from around the world.  Once Icompleted my research and evaluation of potential buyers, Idecided which ones would be most suitable to market my productinternationally.  Then I decided to grant exclusivedistributorship.  In order to effectively communicate with myinternational customers, I invested in a fax.  I chose a U.S.bank to handle international transactions.  The bank alsoprovided guidance on methods of payment and how best to receiveand transmit money.  This is essential know-how for anyonewanting to be successful in foreign markets."
Michael Stoff knows about success in foreign markets.  In justone year of exporting, sales topped $1 million and increased 40percent in the second year of operations.  Today, Novi, Inc. is alarge distributor of wireless intercom systems which exports toover ten countries.  
Breaking Into The Trade Game:  A Small Business Guide toExporting can assist your company's international marketingefforts.  This Guide highlights the export success stories ofmany small businesses.  It is both a comprehensive how-to manualand reference book providing you with the contacts and resourcesto ease your entry into markets around the world.
     Part I:  Becoming an Export Success Story takes you throughthe exporting process with stories of small businesses all aroundthe United States that have found exporting to be an exciting andprofitable way to expand their business.
     Chapter 1:  Making the Export Decision includes aninternational business plan to assess your company's exportreadiness, business goals and commitment;
     Chapter 2:  Identifying International Markets explains howto conduct foreign market research and the resources available toassist you;
     Chapter 3:  Foreign Market Entry discusses methods ofdistributing your product abroad with an emphasis on exporting;
     Chapter 4:  The Export Transaction details the stepsinvolved in making trade happen, including setting prices,negotiating the sale and determining legal aspects of exporting;
     Chapter 5:  Export Financing outlines government and privatesector financing resources and methods of payment;
     Chapter 6:  Transporting Goods Internationally focuses onmoving goods overseas, including packaging and labelling; and
     Chapter 7:  Strategic Alliances and Foreign InvestmentOpportunities explores other methods of market entry beyondexporting, such as joint ventures and off-shore manufacturingfacilities.
     Part II:  The Exporter's Directory is a comprehensivedirectory of contacts and information sources to assist you asyou go global.
PART I:   BECOMING AN EXPORT SUCCESS STORYChapter 1      Making the Export Decision
     Exporting is crucial to America's economic health. Increased exports mean business growth, and business growth meansmore jobs.  Yet, only a small percentage of potential exporterstake advantage of these opportunities.  It is critical for U.S.businesses to think globally.  Your decision to read this bookindicates an interest in exporting.  However, you may havediscovered your company is already competing internationally --foreign-owned companies are competing with you in your "domestic"markets.  The division between domestic and international marketsis becoming increasingly blurred.  Your business cannot ignoreinternational realities if you intend to maintain your marketshare and keep pace with your competitors.  Making the exportdecision requires careful assessment of the advantages anddisadvantages of expanding into new markets.  Once the decisionis made to export, an international business plan is essential. This chapter presents the advantages and disadvantages ofexporting and offers a sample business plan.
**ADVANTAGES AND DISADVANTAGES OF EXPORTING**     Consider some of the specific advantages ofexporting.Exporting can help your business:-     enhance domestic competitiveness          increase sales and profits         gain global market share     
-     reduce dependence on existing markets          exploit corporate technology and know-how         extend the sales potential of existing products     
-     stabilize seasonal market fluctuations          enhance potential for corporate expansion         sell excess production capacity     
-     gain information about foreign competition      In comparison, there are certain disadvantages toexporting.Your business may be required to:   -     develop new promotional material          subordinate short-term profits to long-term gains         incur added administrative costs      
-     allocate personnel for travel          wait longer for payments         modify your product or packaging      
-     apply for additional financing          obtain special export licenses
These disadvantages may justify a decision to forego exporting atthe present time.  For example, if your company's financialsituation is weak, attempting to sell into foreign markets may beill-timed.  On the other hand, some companies have beensuccessful selling abroad even before they have made any salesdomestically:
Landmark Systems of Vienna, Virginia, had virtually no domesticsales before it entered the European market.  Landmark haddeveloped a software program for IBM mainframe computers andlocated an independent distributor in Europe to represent theirproduct.  In their first year, 80 percent of their sales wereattributed to exporting.  In their second year, sales jumped from$100,000 to $1.4 million -- with 70 percent attributable toexports.  
     As you can see, there are no hard-and-fast rules as to whichbusinesses should export, and which should not.  In the case ofLandmark Systems mentioned above, a foreign distributor producedresults before any significant domestic sales occurred.  LandmarkSystems' decision to export, like that of many other smallbusiness exporters featured in this guide, was based on carefulplanning.  
**THE NEED FOR AN INTERNATIONAL BUSINESS PLAN**     Behind most export success stories is a plan.  Whetherformally written down, or sketched out informally at a meeting ofyour management team, an international business plan is anessential tool to properly evaluate all the factors that wouldaffect your company's ability to go international.  An international business plan should define your company's:-          commitment to international trade;          export pricing strategy;         reason for exporting;
-          potential export markets and customers;          methods of foreign market entry;         exporting costs and projected revenues;
-          export financing alternatives;          legal requirements;         transportation method; and
-          overseas partnership and foreign investmentcapabilities.      Creating an international business plan is important fordefining your company's present status, internal goals andcommitment, but is also required if you plan to seek exportfinancing assistance.  Preparing the plan in advance of makingexport loan requests from your bank can save time and money. Completing and analyzing an international business plan helps youanticipate future goals, assemble facts, identify constraints andcreate an action statement.  It should also set forth specificobjectives, an implementation timetable and milestones to gaugesuccess. International Business PlanThe purpose of the International Business Plan workbook is toprepare your business to enter the international marketplace.This workbook will serve as a step-by-step guide to lead youthrough the process of exporting your product to an internationalmarket.  The workbook is divided into sections.  Each sectionmust be completed before you start the next section.  After youhave completed the entire workbook, you will be ready to developan international business plan to export your product.  Once thebusiness plan is completed, an in-depth analysis of yourreadiness to export can be completed. 
PRODUCTS/SERVICES  
**STEP 1:   Select the most exportable products to be offeredinternationally.**
To identify products with export potential for distributioninternationally, you need to consider products that aresuccessfully distributed in the domestic market.  The productneeds to fill a targeted need for the purchaser in export marketsaccording to price, value to customer/country and market demand.
**What are the major products your business sells?**
1.   
2.   
3.   
**What products have the best potential for international trade?**
1.   
2.   
3.   
**STEP 2:   Evaluate the products to be offered internationally.
What makes your products unique for an overseas market?
1.   
2.   
3.   
**Why will international buyers purchase the products from yourcompany?**
1.   
2.   3.   
**How much inventory will be necessary to sell overseas?**
1.   
2.   
3.   
Exercise:**IDENTIFYING PRODUCTS WITH EXPORT POTENTIAL**List below the products you believe have export potential. Indicate the reasons you believe each product will be successfulin the international marketplace.Products/ServicesReasons for Export Success1.   2.   3.   4.   5.   6.   7.   8.   9.   10.   11.   12.   13.   14.   15.
**Decision Point:  These products have export potential.**
**YES
      NO
PLANNING
**What is the purpose of completing this workbook?**
     You know that you want to see your company grow throughexporting.
**Five reasons it will be worth your time and effort:**-  Careful completion of this workbook will help evaluateyour level of commitment to exporting.    The completed workbook can help you evaluate yourproduct's potential for the international trade market.   The workbook gives you a tool to help you better manageyour international business operations successfully.  
-  The completed workbook will help you communicate yourbusiness ideas to persons outside your business and can be anexcellent starting point for developing an internationalfinancing proposal.     Businesses managed are more successful when workingfrom a business plan.
**Can't I hire someone to do this for me?**      No!  Nobody will do your thinking or make decisions for you.This is your business.  If the business plan is to be useful, itmust reflect your ideas and efforts -- not those of an outsider. 
**Why is planning so important?**      The planning process forces you to look at your futurebusiness operations and anticipate what will happen.  Thisprocess better prepares you for the future and makes you moreknowledgeable about your business.  Planning is vital formarketing your product in an international marketplace.       Any firm considering entering into international businesstransactions must understand that doing business internationallyis not a simple task nor one for the faint of heart.  It isstimulating and potentially profitable in the long-term butrequires much preparation and research prior to the firsttransaction.  
In considering products for the international market, a businessneeds to be:-  Successful in its present domestic operation.    Willing to commit its resources of time, people andcapital to the program.  Entry into the international market maytake as long as two years to generate profit with cash outflowduring that period. Sensitive and aware of the cultural implications ofdoing business internationally.  
     Developing a business plan helps you assess your presentmarket situation, business goals, and commitment which willincrease your opportunities for success.
**What's the bottom line for me if I do the plan?**      Research shows that small business failure rates among newbusinesses are significantly lower for new businesses that havedeveloped a business plan.
**Isn't planning just for the big companies?**      Planning is important for any organization that wants toapproach the future with a plan of action.  The future comeswhether you are prepared for it or not.  A business plan helpsyou anticipate the future and make well-informed decisionsbecause you have thought about the alternatives you will befacing.
**How often do I have to do this?**      A plan must be revised as needed, at least once a year. Planning is a continuous process. You will be surprised how mucheasier it is to develop a business plan after the first time. Plus, after a revision or two you will know more about yourinternational business market opportunities to export products.
**GOAL SETTING**
     Determining your business goals can be a very exciting andoften challenging process. It is, however, a very important stepin planning your entry into the international marketplace.  Thefollowing exercise is intended to help you clarify your short andlong-term business goals.
**STEP 1:   Define long-term goals.**-  What are your long-term goals for this business in the next 5years?  Examples:  increase export sales by ___% annually;develop country cultural profiles.    How will the international trade market help you reach yourlong-term goals?
**STEP 2:   Define short-term goals.**-  For your international business, what are your first yeargoals?  Examples: attend export seminars, select a freightforwarder.    What are your two-year goals for your international businessproducts/services?
**STEP 3:   Develop an action plan to reach your short-term goalsby using international trade.**
**INDUSTRY ANALYSIS**
**STEP 1:   Determine your industry's growth for the next 3 years.**
     Talk to people in the same business or industry, researchindustry-specific magazines, attend trade fairs and seminars.
**STEP 2:   Research how competitive your industry is in the globalmarkets.**
     Utilize the National Trade Data Bank (NTDB), obtainimport/export statistics from the Bureau of the Census, andcontact the U.S. Small Business Administration (SBA) or the U.S.Department of Commerce (DOC) district office in your area.
**STEP 3:   Find out your industry's future growth in theinternational market.**
     Contact the SBA or the U.S. Foreign & Commercial Service (US& FCS) district office and contact a DOC country or industry deskin Washington, D.C.
**STEP 4:   Research federal or state government market studiesthat have been conducted on your industry's potentialinternational markets.**
     Contact SBA, your state international trade office, a DOCcountry or industry desk in Washington, D.C.
**STEP 5:   Find export data available on your industry.**
     Contact your SBA or DOC district office.               
**YOUR BUSINESS/COMPANY ANALYSIS**
**STEP 1:   Why is your business successful in the domestic market? What's your growth rate?**
**STEP 2:   What products do you feel have export potential?**
**STEP 3:   What are the competitive advantages of your products orbusiness over other domestic and international businesses?**
**PROS AND CONS OF MARKET EXPANSION**     Brainstorm a list of pros and cons for expanding your marketinternationally.  Based on your product and market knowledge,determine your probability of success in the internationalmarket.
**Industry/Product:**ProsCons1.1.2. 2.3.3.    4.4. 5.5. 6.                                 6.    7.                                           7. 8.       8.    9.                                            9. 10.                           10.   11.                                           11.   12.                                          12.  
**PROBABILITY OF SUCCESS**
0%             25%            50%            75%            100%
**MARKETING YOUR PRODUCT**     Given the market potential for your products ininternational markets, how is your product unique?-  What are your product's advantages?          What are your product's disadvantages?         
 What are the competitive product's advantages?
 What are the competitive product's disadvantages?
What are the needs that will be filled by your product in aforeign market?
What competitive products are sold abroad and to whom?
How complex is your product?  What skills or special training arerequired to:
 Install your product?  
-  Use your product?    Maintain your product?   Service your product?  
What options and accessories are available?
 Has an aftermarket been developed for your product?
 What other equipment does the buyer need to use your product?
 What complementary goods does your product require?
If your product is an industrial good:
 What firms are likely to use it?  
-  What is the useful life of your product?    Is use or life affected by climate?  If so, how?   Will geography affect product purchase, for exampletransportation problems?  
-  Will the product be restricted abroad, for example tariffs,quotas or non-tariff barriers?  If the product is a consumer good:
 Who will consume it? How frequently will the product bebought?  
-  Is consumption affected by climate?    Is consumption affected by geography, for exampletransportation problems?   Will the product be restricted abroad for example tariffs,quotas or non-tariff barriers?  
-  Does your product conflict with traditions, habits or beliefsof customers abroad?   **STEP 1:**Select the best countries to market your product.
     The U.S. Small Business Administration and the United Statesand Foreign Commercial Service may be of assistance in providingproduct market analysis.       Since the number of world markets to be considered by acompany is very large, it is neither possible nor advisable toresearch them all.  Thus, your firm's time and money are spentmost efficiently by using a sequential screening process.     The first step in this sequential screening process for thecompany is to select the more attractive countries for yourproduct.  Preliminary screening involves defining the physical,political, economic and cultural environment.  Rate the followingmarket factors in each category.
-  Select 2 countries you think have the bestmarketpotential for your product;      Review the market factors for each country;     Research data/information for each country;     
- Rate each factor on a scale of 1-5 with 5 being thebest;and      Select a target market country based on your ratings
MARKET FACTOR ASSESSMENT           COUNTRY/RATINGCOUNTRY/RATING**Demographic/Physical Environment:**Population size, growth, density
-       Urban and rural distribution      Climate and weather variations      Shipping distance
-      Product-significant demographics      Physical distribution and communication network      Natural resources
**Political Environment:**      System of government
-       Political stability and continuity       Ideological orientation      Government involvement in business
-       Attitudes toward foreign business            (trade restrictions, tariffs,             non-tariff barriers, bilateral             trade agreements)        National economic and          developmental priorities
**Economic Environment:**      Overall level of development
-      Economic growth:          GNP, industrial sector       Role of foreign trade in the          economy      Currency:  inflation rate,          availability, controls, 
stability          of exchange rate
-       Balance of payments       Per capita income and distribution      Disposable income and          expenditure patterns
**Social/Cultural Environment:**Literacy rate, educational level
-       Existence of middle class       Similarities and differences in          relation to home marketLanguage and other cultural
         considerations
**Market Access:**    Limitations on trade:
          high tariff levels, quotas
-      Documentation and        import regulations     Local standards, practices, and         other non-tariff barriers      Patents and trademark protection
-       Preferential treaties       Legal considerations for        investment, taxation, repatriation,           employment, code of laws**Product Potential:      Customer needs and desires
-       Local production, imports,            consumption    Exposure to and acceptance          of product      Availability of linking products
-       Industry-specific key indicators            of demand       Attitudes toward products of         foreign origin      Competitive offerings
**Local Distribution and Production:** Availability of intermediaries
-        Regional and local transportation            facilities         Availability of manpower        Conditions for local manufacture
      Indicators of population, income levels and consumptionpatterns should be considered.  In addition, statistics on localproduction trends, along with imports and exports of the productcategory, are helpful for assessing industry market potential. Often, an industry will have a few key indicators or measuresthat will help them determine the industry strength and demandwithin an international market.  A manufacturer of medicalequipment, for example, may use the number of hospital beds, thenumber of surgeries and public expenditures for health care asindicators to assess the potential for its products.
What are the projected growth rates for the two countriesselected over the next 3-5 years?
**STEP 2:**Determine Projected Sales Levels
What is your present U.S. market percentage?
What are the projected sales for similar products in your choseninternational markets for the coming year?
What sales volume will you project for your products in theseinternational markets for the coming year?
What is the projected growth in these international markets overthe next five years?
**STEP 3:**Identify Customers Within Your Chosen Markets
What companies, agents or distributors have purchased similarproducts?
What companies, agents or distributors have made recent requestsfor information on similar products?
What companies, agents or distributors would most likely beprospective customers for your export products?
**STEP 4:**Determine Method Of Exporting
How do other U.S. firms sell in the markets you have chosen?
Will you sell direct to the customer?
Who will represent your firm?
  Who will service the customers needs?
**STEP 5:**  Building A Distributor or Agent Relationship
- Will you appoint an agent or distributor to handle your exportmarket?    What facilities does the agent or distributor need to servicethe market?   What type of client should your agent or distributor befamiliar with in order to sell your product?  
-  What territory should the agent or distributor cover?    What financial strength should the agent or distributor have?   What other competitive or non-competitive lines are acceptableor not acceptable for the agent or distributor to carry?  
-  How many sales representatives does the agent or distributorneed and how often will they cover the territory? Will you use an export management company to do your marketingand distribution for you?
**YES                   NO**
If yes, have you developed an acceptable sales and marketing planwith realistic goals you can agree to?
**YES                  NO**
Comments:
**SUPPORT FUNCTIONS**     To achieve efficient sales offerings to buyers in thetargeted markets, several concerns regarding products, literatureand customer relations should be addressed.
**STEP 1:**Identify product concerns.
Can the potential buyer see a functioning model or sample of yourproduct that is substantially the same as would be received fromproduction?
**YES                 NO**
Comments:
What product labeling requirements must be met? (Metricmeasurements, AC or DC electrical, voltage, etc.)  Keep in mindthat the European Community now requires 3 languages on all newpackaging.
When and how can product conversion requirements be obtained?
Can product be delivered on time as ordered?
**YES                 NO**
Comments:
**STEP 2:**Identify literature concerns.
If required, will you have literature in language other thanEnglish?
**YES                 NO**
Do you need a product literaturetranslator to handle thetechnical language?
**YES                 NO**
What special concerns should be addressed in sales literature toensure quality and informative representation of your product?
**STEP 3:**Identify customer relations concerns.
What is delivery time and method of shipment?
What are payment terms?
What are the warranty terms?
Who will service the product when needed?
How will you communicate with your customer? . . . through alocal agent, telex or fax?
Are you prepared to give the same order and delivery preferenceto your international customers that you give to your domesticcustomers?
**YES                 NO**
**MARKETING STRATEGY**     In international sales, the chosen "terms of sale" are mostimportant.  Where should you make the product available at yourplant:  at the port of exit, landed at the port of importation ordelivered free and clear to the customer's door?  The answer tothis question involves determining what the market requires, andhow much risk you are willing to take.     Pricing strategy depends on "terms of sale" and alsoconsiders value-added services of bringing the product to theinternational market.
**STEP 1:**Define International Pricing Strategy.
How do you calculate the price for each product?
What factors have you considered in setting prices?
Which products' sales are very sensitive to price changes?
How important is pricing in your overall marketing strategy?
What are your discount policies?
What terms of sales are best for your export product?
**STEP 2:**Define promotional strategy
What advertising materials will you use?
What trade shows or trade missions will you participate in, ifany?
What time of year and how often will foreign travel be made tocustomer markets?
**STEP 3:**Define customer services
What special customer services do you offer?
What types of payment options do you offer?
How do you handle merchandise that customers return?
**SALES FORECAST**     Forecasting sales of your product is the starting point foryour financial projections.  The sales forecast is extremelyimportant, so it is important you use realistic estimates. Remember that sales forecasts show the expected time the sale ismade.  Actual cash flow will be impacted by delivery date andpayment terms.
Step 1:Fill in the units-sold line for markets 1, 2, and 3 for each yearon the following worksheet.
Step 2:Fill in the sales price per unit for products sold in markets 1,2 and 3.
Step 3:Calculate the total sales for each of the different markets(units sold  x  sales price per unit).
Step 4:Calculate the sales (all markets) for each year - add down thecolumns.
Step 5:Calculate the five year total sales for each market - add acrossthe rows.
**SALES FORECASTS - FIRST FIVE YEARS**                                        1    2    3    4    5Market 1     Units Sold     Sale Price/Unit          Total Sales
Market 2     Units Sold     Sale Price/Unit       Total Sales
Market 3     Units Sold     Sale Price/Unit          Total Sales
Total Sales     All Markets

**COST OF GOODS SOLD**     The cost of goods sold internationally is partiallydetermined by pricing strategies and terms of sale.  To ascertainthe costs associated with the different terms of sale, it will benecessary to consult an international freight forwarder.  Forexample, a typical term of sale offered by a U.S. exporter iscost, insurance and freight (CIF) port of destination.  Yourprice includes all the costs to move product to the port ofdestination.  A typical cost work sheet will include some of thefollowing factors.  These costs are in addition to the materialand labor used in the manufacture of your product.- export packing             forwarding      container loading         
- documentation        inland freight            consular legalization      
- truck/rail unloading       bank documentation             wharfage                  
- dispatch   handling                  bank collection fees      
- terminal charges           cargo insurance      ocean freight             
- other misc.       bunker surcharge          telex      
- courier mail      To complete this worksheet, you will need to use data fromthe sales forecast.  Certain costs related to your terms of salemay also have to be considered. Step 1:Fill in the units-sold line for market 1, 2, and 3 for each year.
Step 2:Fill in the cost per unit for products sold in markets 1, 2, and3.
Step 3:Calculate the total cost for each of the products - (units sold xcost per unit).
Step 4:Calculate the cost of goods sold - all products for each year -add down the columns.
Step 5:Calculate the five-year cost of goods for each market - addacross the rows.
**COST OF GOODS SOLD - FIRST FIVE YEARS**                                        1    2    3    4    5
Market 1     Units Sold     Sale Price/Unit          Total Sales
Market 2     Units Sold     Sale Price/Unit       Total Sales
Market 3     Units Sold     Sale Price/Unit          Total CostCost of Goods Sold All Markets
**INTERNATIONAL OVERHEAD EXPENSES**     To determine overhead costs for your export products, youshould be certain to include costs that pertain only tointernational marketing efforts.  For example, costs for domesticadvertising of service that do not pertain to the internationalmarket should not be included.  Examples of most typical expensecategories for an export business are listed on the next page. Some of these expenses will be first year start-up expenses, andothers will occur every year.
Step 1:Review the expenses listed on the next page.  These are expensesthat will be incurred because of your international business.There may be other expense categories not listed -- list themunder "other expenses."
Step 2:Estimate your cost for each expense category.
Step 3:Estimate any domestic marketing expense included that is notapplicable to international sales.
Step 4:Calculate the total for your international overhead expenses.EXPENSE COST  Market 1  Market 2Market 3Total Yr 1Legal FeesAccounting FeesPromotional MaterialTravelCommunication  Equip/TelexAdvertising AllowancesPromotional Expenses  (e.g., trade shows, etc.)Other Expenses
Total ExpensesLess Domestic Expenses Included Above, if anyTotal International  Start-up Expenses
PROJECTED INCOME STATEMENT - YEAR 1 to 5, ALL MARKETS     You are now ready to assemble the data for your projectedincome statement.  This statement will calculate your net profitor net loss (before income taxes) for each year.
Step 1:Fill in the sales for each year. You already estimated thesefigures; just recopy them on the work sheet.
Step 2:Fill in the cost of goods sold for each year. You alreadyestimated these figures, just recopy on the work sheet.
Step 3:Calculate the Gross Margin for each year (Sales minus Cost ofGoods Sold).
Step 4:Calculate the Total Operating Expenses for each year.
Step 5:Calculate the Net Profit or Net Loss (Before Income Taxes) foreach year (Gross Margin minus Total Operating Expenses).
PROJECTED INCOME STATEMENT - YEAR 1 to 5, ALL MARKETS     
                                        1    2    3    4    5International SalesCost of Goods SoldGross Margin
International Operating Expenses:LegalAccountingAdvertisingTravelTrade showsPromotional MaterialSuppliesCommunication EquipmentInterestInsuranceOther
Total International Operating Expenses
**BREAK-EVEN ANALYSIS**     The break-even is the level of sales at which your totalsales exactly covers your total costs and operating expenses. This level of sales is called the Break-Even Point Sales Level(BEP sales).     In other words, at the BEP sales level, you will make a zeroprofit.  If you sell more than the BEP sales level, you will makea net profit.  If you sell less than the BEP sales level, youwill have a net loss.     The worksheet will calculate your BEP sales level for anyyear of operations.  The steps listed below will assume that youare calculating the BEP sales level for Year 1.
Step 1:Fill in your Total Sales, Total Cost of Goods Sold, and TotalGross Margin for Year 1 on the following page.
Step 2:Calculate the Gross Margin percent using the formula which isgiven on the work sheet. The Gross Margin percent tells you whatpercentage of each dollar of sales results in Gross Margin.
Step 3:Fill in the Total Operating Expenses for Year 1.
Step 4:Calculate the BEP sales level using the formula which is given.Your need to reach this level of sales just to break even.
     Note: In addition to a break-even analysis, it is highlyrecommended that a profit and loss statement be generated for thefirst few actual international transactions. Since there are agreat number of variables relating to costs of goods, realtransactions are required to establish actual profitability andminimize the risk of losses.
**STEP 1:**     Total Sales:                        $        Total Cost of Goods Sold:           $        Total Gross Margi:n                 $
**STEP 2:**     Total Gross Margin:                 $        Gross Margin %:                     $        Total Sales:                        $        Gross Margin % = 0.                    (Leave the Gross Margin $ in a decimal format.  The formatis 0.347 - not 34.7%).
**STEP 3:**     Total Operating Expenses:           $
**STEP 4:**     Total Operating Expenses:           $       BEP Sales Level:                    $       Gross Margin %:                     $       BEP Sales Level:                    $
**TIMETABLE**     This is a worksheet that you will need to work onperiodically as you progress in the workbook.  The purpose is toensure that key tasks are identified and completed to increasethe success of your international business.
**STEP 1:**Identify key activities     By reviewing other portions of your business plan, compile alist of tasks that are vital to the successful operation of yourbusiness.  Be sure to include travel to your chosen market asapplicable.
**STEP 2:**Assign responsibility for each activity     For each identified activity, assign one person primaryresponsibility for the completion of that activity.
**STEP 3:**Determine scheduled start date     For each activity determine the date when work will begin.You should consider how the activity fits into your overall planas well as the availability of the person responsible.
**STEP 4:**Determine scheduled finish date     For each activity determine when the activity must becompleted.
**ACTION PLAN****PROJECT/TASK               PERSON          STARTDATE/FINISH DATE**
**SUMMARY**
**STEP 1:**Verify completion of previous pages.     You should have finished all the other sections in theworkbook before continuing any further.
**STEP 2:**Identify your business plan audience.     What type of person are you intending to satisfy with thisbusiness plan?  The summary should briefly address all the majorissues that are important to this person.  Keep in mind that thispage will probably be the first read by this person.  It isextremely important the summary be brief yet contain theinformation most important to the reader.  This section shouldmake the reader want to read the rest of your plan.
**STEP 3:**Write a one-page summary.     You will now need to write no more than a page summarizingall the previous work sheets you have completed.       Determine which sections are going to be most interesting toyour reader.  Write one to three sentences that summarize each ofthe important sections.       These sentences should appear in the order of the sectionsof your business plan.  The sentences must fit together to form asummary and not appear to be a group of loosely related thoughts.     You may want to have several different summaries, dependingon who will read the business plan.
**INTERNATIONAL BUSINESS PLAN SUMMARY:**
**PREPARING AN EXPORT PRICE QUOTATION**     Setting proper export prices is crucial to a successfulinternational sales program; prices must be high enough togenerate a reasonable profit, yet low enough to be competitive inoverseas markets.  Basic pricing criteria - costs, market demand,and competition - are the same for domestic and foreign sales. However, a thorough analysis of all cost factors going into acost, insurance and freight (CIF) quotation may result in pricesthat are different from domestic ones.
       "Marginal cost" pricing is the most realistic and frequentlyused pricing method.  Based on a calculation of incrementalcosts, this method considers the direct out-of-pocket expenses ofproducing and selling products for export as a floor beneathwhich prices cannot be set without incurring a loss.  There areimportant principles that should be followed when pricing aproduct for export, summarized below.
**COST FACTORS**     In calculating an export price, be sure to take into accountall the cost factors for which you, the exporter, are liable.-  Calculate direct materials and labor costs involved inproducing the goods for export.    Calculate your factory overhead costs, prorating theamount of overhead chargeable to your proposed export order.   Deduct any charges not attributable to the exportoperation (i.e., domestic marketing costs, domestic legalexpenses), especially if export sales represent only a small partof total sales.
-  Add in the other out-of-pocket expenses directly tied tothe export sales, such as:        travel expenses            catalogs, slide shows, video presentations        promotional material       export advertising       commissions       transportation expenses       packing materials       legal expenses*       office supplies*       patent and trademark fees*       communications*       taxes*       rent*       insurance*       interest*       provision for bad debts       market research       credit checks       translation costs       product modification       consultant fees       freight forwarder fees *These items will typically represent the cost of the totaloperation, so be sure to prorate these to reflect only the costof producing the goods for export.     5.  Allow yourself a realistic price margin for unforeseencosts, unavoidable risks, and simple mistakes that are common inany new undertaking.     6.  Also allow yourself a realistic profit or mark-up.
**OTHER FACTORS TO CONSIDER**     Market Demand - As in the domestic market, product demand isthe key to setting prices in a foreign market.  What will themarket bear for a specific product or service?  What will theestimated consumer price for your product be in each foreignmarket?  If your prices seem out of line, try some simple productmodifications to reduce the selling price, such as simplificationof technology or alteration of product size to conform to localmarket norms.  Also keep in mind that currency valuations alterthe affordability of goods.  A good pricing strategy shouldaccommodate fluctuations in currency.
     Competition - As in the domestic market, few exporters arefree to set prices without carefully evaluating theircompetitor's pricing policies.  The situation is furthercomplicated by the need to evaluate the competition's prices ineach foreign market an exporter intends to enter.  In a foreignmarket that is serviced by many competitors, an exporter may havelittle choice but to match the going price or even go below it toestablish a market share.  If, however, the exporter's product orservice is new to a particular foreign market, it may be possibleto set a higher price than normally charged domestically.
**QUOTE PREPARATION**     An Export Costing Worksheet that may guide you in preparingexport price quotations follows.
**EXPORT COSTING WORKSHEET**Reference Information1. Our Reference                  2. Customer Reference  3.Customer Information:   3. Name                             5. Cable Address   4. Address                          6. Telex No.                                     7. Fax No.
**Product Information:**SIC Code:   8. Product                           9. No. of Units  10. Net Weight (unit)                11. Gross Weight      12. Dimensions ___ x___ x___         13. Cubic Measure____(sq.in.)  14. Total Measure                    15. H.S. No.
Product Charges:
16. Price (or cost) per unit ______ x units _____Total__________  17. Profit (or markup)        18. Sales Commissions19. FOB FACTORY PRICE
**Fees-Packing, Marking, Inland Freight:**
20. Freight Forwarder21. Financing Costs22. Other charges23. Export Packing24. Labeling/Marking25. Inland Freight to26. Other charges (identify)27. FOB, PORT CITY PRICE (EXPORT PACKED)
**Port Charges/Document**
28. Unloading (heavy lift)29. Terminal30. Other (identify)31. Consular Document (if required)32. Certificate of Origin (if required)33. Export License (if required)34. FAS VESSEL (OR AIRPLANE) PRICE
**Freight**
35. Based on ________  weight _________  measure  36. Ocean ___________  Air ____________  37. On Deck _________  Under Deck _____  38. Rate ____________  Minimum ________  Amount _________
**Insurance**
39. Coverage required _________________  40. Basis ___________  Rate____________  Amount _________
41. CIF, PORT OF DESTINATION PRICE
**WORKSHEET**
EXPORT PROGRAMS & SERVICES     This worksheet helps you identify organizational resourcesthat can provide programs and services to assist you indeveloping your international business plan and increase yourexport sales.
**ORGANIZATIONS SERVICES**-     SBA      USDOC    SBDC 
- Trade Assoc University World Trade Ctr
- CommCollege     Readiness to Export AssessmentMarket Research StudiesCounselingTraining SeminarsEducation ProgramsPublicationsExport GuidesDataBanksTrade ShowsFinancing
Chapter 2
Identifying International Markets  
To succeed in exporting, you must first identify the mostprofitable international markets for your products or services. Without proper guidance and assistance, however, this process canbe time consuming and costly -- particularly for a smallbusiness.
     The U.S. federal government, state governments, tradeassociations, exporters' associations and foreign governmentsoffer low-cost and easily accessible resources to simplify andspeed your foreign market research.  This chapter describes thoseresources and how to use them.
**FEDERAL GOVERNMENT RESOURCES**
     Many government programs and staff are dedicated to helpingyou, the small business owner, assess whether your product orservice is ready to compete in a foreign market.
The U.S. Small Business Administration     Many new-to-export small firms have found the counselingservices provided by the SBA's Service Corps of RetiredExecutives (SCORE) particularly helpful.  Through your local SBADistrict office, you can gain access to more than 850 SCOREvolunteers with experience in international trade.  
     "Our SCORE counselor is really like a big brother to us andour company," says Jim Hadzicki, Vice-President of SanDiego-based Revolution Kites, a recreational kite manufacturer. Exports now account for 24 percent of their sales in just threeyears.  "I recently went on a trip to Tokyo to line up adistributorship.  Our SCORE counselor helped me list ourobjectives, what I was to do and ask about and even told me whatgift I should take to the Japanese representative," saysHadzicki.
     Two other SBA-sponsored programs are available to smallbusinesses needing management and export advice:  Small BusinessDevelopment Centers and Small Business Institutes affiliated withcolleges and universities throughout the United States:
     Small Business Development Centers (SBDCs) offer counseling,training and research assistance on all aspects of small businessmanagement.  
     The Small Business Institute (SBI) program provides smallbusiness owners with intensive management counselling fromqualified business students who are supervised by faculty.  SBIsprovide advice on a wide range of management challenges facingsmall businesses -- including finding the best foreign marketsfor particular products  or services. 
The U.S. Department of Commerce
     The U.S. Department of Commerce's (DOC) International TradeAdministration (ITA) is a valuable source of advice andinformation.  In ITA offices throughout the country internationaltrade specialists can help you locate the best foreign marketsfor your products.  Oklahoma exporter OK-1 Manufacturing Co. hasfound the foreign market research available through the ITAextremely useful:
     "The Oklahoma District ITA office prepared a market researchstudy to determine whether we should export our fitness accessoryitems to Japan," says Sherry Teigen, OK-1 Manufacturing Co.export manager.  Today, the company exports to Japan in additionto 20 other countries.  Since it began exporting, the companystaff has grown by 75 and Sherry's husband, OK-1's President,Roger Teigen, won the 1991 SBA Exporter of the Year award.
     District Export Councils (DECs) are another usefulITA-sponsored resource.  The 51 District Export Councils locatedaround the United States are comprised of 1,800 executives withexperience in international trade who volunteer to help smallbusinesses export.  Council members come from banks,manufacturing companies, law offices, trade associations, stateand local agencies and educational institutions.  They draw upontheir experience to encourage, educate, counsel and guidepotential, new and seasoned exporters in their individualmarketing needs.  
     The United States and Foreign Commercial Service (US&FCS)helps U.S. firms compete more effectively in the globalmarketplace with trade specialists in 69 United States cities and70 countries worldwide.  US&FCS offices provide information onforeign markets, agent/distributor location services, trade leadsand counseling on business opportunities, trade barriers andprospects abroad.
The United States Department of Agriculture
     If you have an agricultural product, you should investigatethe U.S. Department of Agriculture's (USDA) Foreign AgriculturalService (FAS).  With posts in 80 embassies and consulatesworldwide, the FAS can obtain specific overseas marketinformation for your product.  The FAS also maintains sectorspecialists in the United States to monitor foreign markets forspecific U.S. agricultural products.
     Most state commerce and economic development offices haveinternational trade specialists to assist you.  Many states havetrade offices in overseas markets.  Dial Tool and Manufacturingof Franklin Park, Illinois, found the Illinois State office inHong Kong very helpful:
     After visiting the Illinois State office in Hong Kong, DialTool and Manufacturing President Steve Pagliuzza reports that hewas able to sign on sales reps for his company's metal stampingequipment: "My state office in Hong Kong gave me several names ofpotential reps.  We eventually signed them on and are nowsuccessfully exporting to Asia, in addition to Europe, Canada andMexico. In four years, 15-20 percent of our sales now come fromexporting."
     Port Authorities are a wealth of export information.Although traditionally associated with transportation services,many port authorities around the country have expanded theirservices to provide export training programs andforeign-marketing research assistance. For example, the NewYork-New Jersey Port Authority provides extensive services toexporters including XPORT, a full-service export trading company.
**PRIVATE SECTOR RESOURCES**
     In addition to government-supported resources, privatesector organizations can also provide invaluable assistance.
Exporters' Associations
     World Trade Centers, import-export clubs and organizationssuch as the American Association of Exporters and Importers andthe Small Business Exporter's Association can aid in your foreignmarket research.  
Trade Associations
     The National Federation of International Trade Associationslists over 150 organizations in the U.S. to help new-to-exportsmall businesses enter international markets.  Many of theseassociations maintain libraries, databanks and establishedrelationships with foreign governments to assist in yourexporting efforts.
     More than 5,000 trade and professional associationscurrently operate in the United States; many actively promoteinternational trade activities for their members.       The Telecommunications Industry Association is just oneassociation which leads frequent overseas trade missions andmonitors the pulse of foreign market conditions around the globe. Whatever your product or service, a trade association probablyexists that can help you obtain information on domestic andforeign markets.
     Chambers of Commerce, particularly state chambers, orchambers located in major industrial areas, often employinternational trade specialists who gather information on marketsabroad.
**HOW TO GATHER FOREIGN MARKET RESEARCH**
     Now that you know where to begin your research, you shouldnext identify the most profitable foreign markets for yourproducts or services.  You will need to:-     classify your product;          find countries with the largest and fastest growingmarkets for your product;         determine which foreign markets will be the mostpenetrable;     
-     define and narrow those export markets you intend topursue;         talk to U.S. customers doing business internationally;         research export efforts of U.S. competitors.
**Classifying your product
     The Standard Industrial Classification (SIC) code is thesystem by which the United States government classifies its goodsand services.  Knowing the proper code for your product orservice can be useful in collecting and analyzing data availablein the United States.
     Data originating from outside the United States -- orinformation available from international organizations -- areorganized under the Standard International Trade Classification(SITC) system, which may assign a different code to your productor service.  
     Another method of classifying products for export is theHarmonized System (HS).  Knowing the HS classification number,the SIC and the SITC codes for your product is essential toobtaining domestic and international trade and tariffinformation.  DOC and USDA trade specialists can assist inidentifying the codes for your products.  The United StatesBureau of the Census (USBC) can help identify the HS number foryour product.
**Finding countries with the largest and fastest growing marketsfor your product
     At this stage of your research, you should consider whereyour domestic competitors are exporting.  Trade associations canoften provide data on where companies in a particular industrysector are exporting their products.  The three largest marketsfor U.S. products are Canada, Japan and Mexico.  Yet thesecountries may not be the largest markets for your product.  
     Three key United States government databases can identifythose countries which represent significant export potential foryour product:  SBA's Automated Trade Locator Assistance System(SBAtlas), Foreign Trade Report FT925 and the U.S. Department ofCommerce's National Trade Data Bank (NTDB).
       SBA's Automated Trade Locator Assistance System (SBAtlas) isoffered only by the U.S. Small Business Administration andprovides current market information to SBA clients on worldmarkets suitable for their products and services.  This valuableresearch tool supplies small business exporters with informationabout where their products are being bought and sold and whichcountries offer the largest markets.  The Country Reports detailproducts imported and exported by various foreign nations.  Dataare supplied by the DOC's USBC and member nations of the UnitedNations.  This information can be obtained through a SCOREcounselor at the SBA District and Regional Offices and at SBDCsand SBIs.  This service is free to requesting small businesses.     Foreign Trade Report FT925 gives a monthly country-specificbreakdown of imports and exports by SITC number.  Available bysubscription from the Government Printing Office, the FT925 canalso be obtained through DOC ITA offices.
       The National Trade Data Bank (NTDB) contains more than100,000 U.S. government documents on export promotion andinternational economic information.  With the NTDB, you canconduct databank searches on country and product information. NTDB can be purchased by subscription and used with a CD-ROMreader, or can be used at Federal libraries throughout the UnitedStates.  DOC ITA offices will also conduct specific NTDB searchesto meet your foreign market research needs.
       Once you learn which are the largest markets for yourproducts, determine which are the fastest growing markets.  Findout what demographic patterns and cultural considerations willaffect your market penetration.  
     Several publications provide geographic and demographicstatistical information pertinent to your product: The WorldFactbook, produced by the Central Intelligence Agency; WorldPopulation, published by DOC's USBC; The World Bank Atlas,available from the World Bank; and the International TradeStatistics Yearbook of the United Nations.  Volume Two of thisU.N. publication (available at many libraries) listsinternational demand for commodities over a five-year period.
**DETERMINING THE MOST PENETRABLE MARKETS**
     Once you have defined and narrowed a few prospective foreignmarkets for your product, you will need to examine them indetail.  At this stage you should ask the following questions: -     how does the quality of your product or service comparewith that of goods already available in your target foreignmarkets?     is your price competitive in the markets you areconsidering?
    who are your major customers?
     Answering these questions may seem overwhelming at first,but many resources are available to help you select which foreignmarkets are most conducive to selling your product.
        The DOC's ITA can link you with specific foreign markets. ITA offices are part of the US&FCS and communicate directly withFCS officers working in United States Embassies worldwide.     FCS staff and in-country market research firms producein-depth reports on selected products and industries that cananswer many of your questions regarding foreign marketpenetration.
     One small business exporter who regularly uses foreignmarket information obtained through the DOC's US&FCS isFabri-Quilt Inc. of North Kansas City, Missouri.
     According to Fabri-Quilt President Lionel Kunst, "When Idecide to enter a foreign market, the Commerce Department ITAoffice in Missouri sends information on my company to the ForeignCommercial Service Officer in the country where I want to export.They send me back information on that particular country and evenmake appointments for me when I decide to visit the marketmyself."  Of the product line Fabri-Quilt exports, 25 percent oftheir sales can be attributed to exporting.
     You can also order a comparison shopping service reportthrough ITA district offices.  The report is a low-cost way toconduct research without having to leave the United States. 
     SBA's and DOC's Export Legal Assistance Network (ELAN)provides new exporters with answers to their initial legalquestions.  Local attorneys volunteer, on a one-time basis, tocounsel small businesses to address their export-related legalquestions.  These attorneys can address questions pertaining tocontract negotiations, licensing, credit collections proceduresand documentation.  There is no charge for this one-time service,available through SBA or DOC district offices.
     Trade Opportunities Program (TOPs) of the DOC can furnishU.S. small businesses with trade leads from foreign companiesthat want to buy or represent their products or services. Thesetrade leads are available in both electronic or printed form fromthe DOC.  Participating companies must pay a modest fee to gainaccess to this service.
     Other important issues about the target foreign markets youshould explore are:
-     political risk considerations,          the cultural environment, and         whether any product modifications, such as packaging orlabelling, will make the product more "exportable."
     One U.S. poultry producer discovered it had to modify itsproduct to make it more palatable to Japanese consumers:
     Atlanta-based Gold Kist Inc. found that, to be successful inJapan, they needed to cut and package their chicken parts to meetJapanese consumer preferences.  That change required substantialmodification in Gold Kist's operations. The alteration paid off:Gold Kist's Don Sands reports, "In 1988, we shipped 5.3 millionpounds of poultry to Japan, 9 million in 1989 and 12 million in1990."     
     Identifying market-specific issues is easily accomplished bycontacting foreign government representatives in the UnitedStates.  Commercial posts of foreign governments located withinembassies and consulates can assist you in obtaining specificmarket and product information.  
     American Chambers of Commerce (AmChams) abroad can also bean invaluable resource.  As affiliates of the United StatesChamber of Commerce, 61 AmChams, located in 55 countries, collectand disseminate extensive information on foreign markets.  Whilemembership fees are usually required, the small investment can beworth it for the information received.     
   Another fundamental question to ask country-specific expertsis what market barriers, such as tariffs or import restrictions(sometimes referred to as non-tariff barriers), exist for yourproduct?  Specialists at U.S. Trade Representative (USTR) shouldbe consulted on trade barriers.
     Tariffs are taxes imposed on imported goods.  In many cases,tariffs raise the price of imported goods to the level ofdomestic goods.  Often tariffs become barriers to importedproducts because the amount of tax imposed makes it impossiblefor exporters to profitably sell their products in foreignmarkets.  
     Non-tariff barriers are laws or regulations that a countryenacts to protect domestic industries against foreigncompetition.  Such non-tariff barriers may include subsidies fordomestic goods, import quotas or regulations on import quality.
        To determine the rate of duty, you will need to identify theHarmonized Tariff section which corresponds to the product youwish to export.  Each country has its own schedule of duty ratescorresponding to the section of the Harmonized System of TariffNomenclature, I-XXII.

**DEFINING WHICH MARKETS TO PURSUE**
     Once you know the largest, fastest growing and mostpenetrable markets for your product or service, you must thendefine your export strategy.
     Do not choose too many markets.  For most small businesses,three foreign markets will be more than enough, initially.  Youmay want to test one market and then move on to secondary marketsas your "exportise" develops.  Focusing on regional, geographicclusters of countries can also be more cost effective thanchoosing markets scattered around the globe.  
        After you have identified the best export markets, your nextstep will be to determine the best way to distribute your productabroad.  Chapter 3, "Market Entry," discusses distributionmethods.
Chapter 3
**Foreign Market Entry**
   Having determined the best internationalmarkets for your products, you now need to evaluate the mostprofitable way to get your products to potential customers inthese markets.  
     There are several methods of foreign market entry includingexporting, licensing, joint venture and off-shore production. The method you choose will depend on a variety of factorsincluding the nature of your particular product or service andthe conditions for market penetration which exist in the foreigntarget market.   
     Exporting can be accomplished by selling your product orservice directly to a foreign firm, or indirectly, through theuse of an export intermediary, such as a commissioned agent, anexport management or trading company.
     International joint ventures can be a very effective meansof market entry.  Joint ventures overseas are often accomplishedby licensing or off-shore production.  Licensing involves acontractual agreement whereby you assign the rights to distributeor manufacture your product or service to a foreign company. Off-shore production requires either setting up your own facilityor sub-contracting the manufacturing of your product to anassembly operator. 
     Licensing and off-shore production are discussed in Chapter7, "Strategic Alliances and Foreign Investment Opportunities."
**EXPORTING**
     Of the various methods of foreign market entry, exporting ismost commonly used by small businesses.  Start-up costs and risksare limited, and profits can be realized early on.
        There are two basic ways to export: direct or indirect.  Thedirect method requires your company to find a foreign buyer andthen make all arrangements for shipping your products overseas. If this method seems beyond the scope of your business' in-housecapabilities at this time, do not abandon the idea of exporting. Consider using an export intermediary: 

     American Cedar, Inc., a Hot Springs, Arkansas, producer ofcedar products reports that 30 percent of its product sales nowcomes from exporting: "We displayed our products at a trade show,and an export management company found us.  They helped alleviatethe hassles of exporting directly.  Our products are now beingdistributed throughout the European Community from a distributionpoint in France," says American Cedar President Julian McKinney.
**INDIRECT EXPORTING**
     Many small businesses like American Cedar have beenexporting indirectly by using an export intermediary.  There areseveral kinds of export intermediaries you should consider. 
Commissioned agents
     Commissioned agents act as "brokers," linking your productor service with a specific foreign buyer.  Generally, the agentor broker will not fulfill the orders, but rather will pass themto you for your acceptance.  However, they may assist, in somecases, with export logistics such as packing, shipping and exportdocumentation.
**Export Management Companies (EMCs)**
     EMCs act as your "off-site" export department, representingyour product -- along with the products of other companies -- toprospective overseas purchasers.  The management company looksfor business on behalf of your company and takes care of allaspects of the export transaction.  Hiring an EMC is often aviable option for smaller companies that lack the time andexpertise to break into international markets on their own.       EMCs will often use the letterhead of your company,negotiate export contracts and then provide after-sales support. EMCs may assist in arranging export financing for the exportersbut they do not generally assure payment to the manufacturers. Some of the specific functions an EMC will perform include:
-     conducting market research to determine the bestforeign markets for your products; attending trade shows and promoting yourproductsoverseas.         assessing proper distribution channels;
-          locating foreign representatives and/or distributors;          arranging export financing;         handling export logistics, such as preparinginvoices,arranging insurance, customs documentation, etc.; and
-          advising on the legal aspects of exporting andother compliance matters dealing with domestic and foreign traderegulations.       EMCs usually operate on a commission basis, although somework on a retainer basis and some take title to the goods theysell, making a profit on the markup.  It is becoming increasinglycommon for EMCs to take title to goods.
**Export Trading Companies (ETCs)**
     ETCs perform many of the functions of EMCs.  However, theytend to be demand-driven and transaction-oriented, acting as anagent between the buyer and seller.  Most trading companiessource U.S. products for their overseas buyers.  If you offer aproduct that is competitive and popular with the ETC buyers, youare likely to get repeat business.  Most ETCs will take title toyour goods for export and will pay your company directly.  Thisarrangement practically eliminates the risks associated withexporting for the manufacturer.  
**ETC Cooperatives**
     ETC cooperatives are United States government-sanctionedco-ops of companies with similar products who seek to export andgain greater foreign market share.  Many agricultural concernshave benefited from ETC cooperative exporting, and manyassociations have sponsored ETC cooperatives for their membercompanies.  The National Machine Tool Builders' Association, theOutdoor Power Equipment Institute and the National Association ofEnergy Service Companies are a few examples of associations withETC co-ops.  Check with your particular trade association forfurther information.
**The Export Trading Company Act of 1982
     This legislation encourages the use and formation ofEMCs/ETCs by changing the antitrust and banking environmentsunder which these companies operate.  The Act increases access toexport financing by permitting bank holding companies to investin ETCs and reduces restrictions on trade finance provided byfinancial institutions.  Under the Act, banks are allowed to makeequity investments in qualified ETCs.
**Foreign Trading Companies
     Some of the world's largest trading companies are locatedoutside the United States.  They can often be a source of exportopportunity.  U.S. & Foreign Commercial Service (US&FCS)representatives in embassies around the world can tell you moreabout trading companies located in a given foreign market.
**Exporting through an Intermediary -- Factors to Consider**
        Working with an EMC/ETC makes sense for many smallbusinesses.  The right relationship, if structured properly, canbring enormous benefits to the manufacturer, but no businessrelationship is without its potential drawbacks.  Themanufacturer should carefully weigh the pros and cons beforeentering into a contract with an EMC/ETC.  Some advantagesinclude:  -     Your product gains exposure in international markets--with little or no commitment of staff and resources from yourcompany.     The EMC/ETC's years of experience andwell-establishednetwork of contacts may help you to gain fasteraccess to international markets than you could throughestablishing a relationship with a foreign-based partner.      
    Using an intermediary lowers or eliminates yourexportstart-up costs, and, therefore, the risks associated withexporting.  You can negotiate your contract with an EMC so thatyou pay nothing until the first order is received.     
    Your intermediary will guide you through theexportprocess step-by-step.  Over time, you will develop your ownexport skills.
Some disadvantages of exporting through an intermediary include:     You lose some control over the way in which your productis marketed and serviced.  Your company's image and name are atstake.  You will want to incorporate any concerns you may haveinto your contract, and you will want to monitor closely theactivities and progress of your intermediary.
    You may lose part of your export-sales profit marginbydiscounting your price to an intermediary.  However, you mayfind that the economies of scale realized through increasedproduction offset this loss.
   Using an intermediary can result in a higher pricebeingpassed o to the overseas buyer or end-user.  This may or may notaffect ynour competitive position in the market.  The issue ofpricing should be addressed at the outset.
**Export Merchants/Export Agents
     Export merchants and agents will purchase and thenre-package products for export, assuming all risks and selling totheir own customers.  This export intermediary option should beconsidered carefully, as your company could run the risk oflosing control over your product's pricing and marketing inoverseas markets. **Piggyback Exporting
     Allowing another company, which already has an exportdistribution system in place, to sell your company's product inaddition to its own is called "piggyback" exporting.  
        Piggyback exporting has several advantages.  Thisarrangement can help you gain immediate foreign market access. Also, all the requisite logistics associated with selling abroadare borne by the exporting company.  Oklahoma-based DPManufacturing's winches were attached to another product and soldabroad by another company.  DP Manufacturing now handles its ownexports and reports that 15 percent of its sales comes frominternational markets.
**How to Find Export Intermediaries
     Small businesses often report that intermediaries find them-- at trade fairs and through trade journals where their productshave been advertised -- so it can often pay to get the word outthat you are interested in exporting.
     One way to begin your search for a U.S.-based exportintermediary is in the Yellow Pages of your local phonedirectory.  In just a few initial phone calls, you should be ableto determine whether indirect exporting is an option you want topursue further.
     The National Association of Export Companies (NEXCO) and theNational Federation of Export Associations (NFEA) are twoassociations that can assist in your efforts to find exportintermediaries. The Directory of Leading Export ManagementCompanies is another useful source (see Part II, The Exporter�sDirectory).
     DOC's Office of Export Trading Company Affairs (OETCA) canalso assist in providing information on how to locate ETCs andEMCs, as well as ETC cooperatives in the U.S.  The office, undera joint public/private partnership, compiles the Export YellowPages, which provides the names and addresses of EMCs/ETCs, aswell as other export service companies, such as banks and freightforwarders.  Manufacturers, or producers, can also be listed inthe guide free of charge; 50,000 copies are distributed worldwideannually.  Contact your local U.S. Department of Commercedistrict office for information on being listed or for a freecopy of the directory.
     Locating the best export intermediary to represent youoverseas is important.  Do your homework before signing anagreement. 
**DIRECT EXPORTING**
     While indirect exporting offers many advantages, directexporting also has its rewards:  although initial outlays and theassociated risks are greater, so too can be the profits.   
     California exporter Bayley Suit, Inc. reports that 80percent of its sales come from exporting.  The company presidentsays that "40 percent of sales come from the Pacific Rim and 40percent from the UK and Europe.  In just a few years, exportshave pushed our gross sales from $1 million to $4 million."
     Direct exporting signals a commitment on the part of companymanagement to fully engage in international trade.  It mayrequire that you dedicate a staff person or even severalpersonnel to support your export efforts, and company managementmay have to travel abroad frequently.  
        Selling directly to an international buyer means that youwill have to handle the logistics of moving the goods overseas. But, as the case of Ekegard, Inc. reveals, the extra efforts canpay off:
     Using agents based in Pakistan and Thailand, Iowa-basedEkegard, Inc. states that 80 percent of its sales now come fromexporting -- quite an achievement in just three years.  Accordingto Ekegard President Janne Ekstam, "Exporting helps to offsetfluctuations in the United States economy." 
**Different Approaches to Direct Exporting**
**Sales Representatives/Agents**
     Like manufacturers' representatives in the United States,foreign-based representatives or "agents" work on a commissionbasis to locate buyers for your product.  Your representativemost likely will handle several complementary, but non-competingproduct lines.  An agent is, generally, a representative withauthority to make commitments on behalf of your firm.  Becareful, therefore, about using the terms interchangeably.  Youragreement should specify whether the agent/rep. has legalauthority to obligate the firm.     
**Distributors**
     Foreign distributors, in comparison, purchase merchandisefrom the U.S. company and re-sell it at a profit.  They maintainan inventory of your product, which allows the buyer to receivethe goods quickly.  Distributors often provide after-salesservice to the buyer.  
     Your agreement with any overseas business partner -- whethera representative, agent or distributor --  should address whetherthe arrangement is exclusive or non-exclusive, the territory tobe covered, the length of the association, and other issues. (See Chapter Four, The Export Transaction, for additionalinformation on negotiating agent/distributor agreements.)     Kansas-based Airparts Companies has been extremelysuccessful using overseas distributors:
     "We employ 1,200 distributors worldwide," says Marta E.Maxwell, president of Airparts Companies, Inc. of Wichita,Kansas.  With over $13 million in sales and 38 employees, Maxwellattributes 70 percent of her sales to exporting.  
     Finding overseas buyers for your products need not be moredifficult than locating a representative here in the UnitedStates.  It may require, however, an investment of time andresources to travel to your target market to meet face-to-facewith prospective partners.   One way to identify those interestedin your product is to tap the DOC's Agent/Distributor Service. This program provides a customized search to identify agents,distributors and representatives for United States products basedon the foreign companies' examination of the United Statesproduct literature.  
     "The Commerce Department Agent/Distributor Search located adistributor for us in India, and we've had a good workingrelationship for three years," says Shirley Wright, arepresentative of the Wisconsin biotechnology firm Promega.Promega derives more than 30 percent of its sales fromexporting.]
     Other sources of leads to find foreign agents anddistributors are trade associations, foreign chambers of commercein the United States and American chambers of commerce located inforeign countries.
     Many publications can be useful.  The Standard Handbook ofIndustrial Distributors lists agents and distributors in morethan 90 countries.  The Manufacturers' Agents NationalAssociation also has a roster of agents in Europe (see Part II,The Exporter's Directory).
**Foreign government buying agents**
     Foreign government agencies or quasi-governmental agenciesare often responsible for procurement.  In some instances,countries require an in-country agent to access these procurementopportunities.  This can often represent significant exportpotential for U.S. companies, particularly in markets where U.S.technology and know-how are valued.  Foreign country commercialattaches in the United States can provide you with theappropriate in-country procurement office.Retail Sales
     If you produce consumer goods, you may be able to selldirectly to a foreign retailer.  You can either hire a salesrepresentative to travel to your target market with your productliterature and samples and call on retailers, or you canintroduce your products to retailers through direct-mailcampaigns.  The direct-marketing approach will save commissionfees and travel expenses.  You may want to combine trips to yourtarget markets with exploratory visits to retailers.  Suchface-to-face meetings will reinforce your direct marketing.
**Direct Sales to End-User**
     Your product line will determine whether direct sales to theend-user are a viable option for your company.  A manufacturer ofmedical equipment, for example, may be able to sell directly tohospitals.  Other major end-users include foreign governments,schools, businesses and individual consumers.  
**HOW TO FIND BUYERS**
**Advertise in Trade Journals**
     Many small businesses report that foreign buyers often findthem.  An ad placed in a trade journal or a listing in the DOC'sCommercial News USA can often yield innumerable inquiries fromabroad.  Commercial News USA is a catalog-magazine featuring U.S.products and distributed to 125,000 business readers in over 140countries around the world and to over 650,000 Economic BulletinBoard users in 18 countries.  Fees vary with the size of thelisting.  Many U.S. companies have had enormous success inlocating buyers through this vehicle:
     "When overseas buyers contacted us we were thrilled," saysMaryland's Marine Enterprises Vice President Brenda Dandy,discussing the results of a listing her company bought inCommercial News USA.  Exports now represent 20 percent of MarineEnterprises' sales. 
**Participate in Catalog and Video/Catalog Exhibitions
     Catalog and Video/Catalog exhibitions are another low-costmeans of advertising your product abroad.  Your products areintroduced to potential partners at major international tradeshows -- and you never have to leave the United States.  For asmall fee, the US&FCS officers in embassies show your catalogs orvideos to interested agents, distributors and other potentialbuyers.
     A number of private sector publications also offer U.S.companies the opportunity to display their products in catalogssent abroad.  A few include Johnston International's ExportMagazine, The Journal of Commerce and the Thomas PublishingCompany's American Literature Review. 
**Pursue Trade Leads**
     Rather than wait for potential foreign customers to contactyou, another option is to search out foreign companies lookingfor the particular product you produce.  Trade leads frominternational companies seeking to buy or represent U.S. productsare gathered by US&FCS officers worldwide and are distributedthrough the DOC's Economic Bulletin Board.  There is a nominalannual fee and a connect-time charge.  The leads also arepublished daily in The Journal of Commerce under the heading,"Trade Opportunities Program" and in other commercial newsoutlets.
     Another source of trade leads is the World Trade Centers(WTC) Network, where you can advertise your product or service onan electronic bulletin board transmitted globally.
        If your product is agricultural, the U.S. Department ofAgriculture (USDA) Foreign Agricultural Service (FAS)disseminates trade leads collected by their 80 overseas offices.These leads may be accessed through the AgExport FAX pollingsystem, the AgExport Trade Leads Bulletin, The Journal ofCommerce or on several electronic bulletin boards.
**Exhibit at Trade Shows**
     Trade shows also are another means of locating foreignbuyers.  DOC's Foreign Buyer Program certifies a certain numberof U.S. trade shows each year.  Foreign buyers are activelyrecruited by DOC commercial officers, and special services --such as meeting areas and translators -- are provided toencourage and facilitate private business discussions.
        International trade shows are another excellent way tomarket your product abroad.  Many U.S. small businesses find thatgoing to a foreign trade show once just is not enough:
     "You have to hang in there," said Allen-Edmonds ShoeCorporation President John Stollenwerk.  "In the beginning, inmany countries where we displayed our products at foreign tradeshows, we saw no results.  But gradually people began to take ourproduct, American made shoes, seriously.  We market our shoes as`the world's finest.'  That's one way American companies cancompete."  Twelve percent of Wisconsin-based Allen-Edmonds salesare derived from exporting.
     Through a certification program DOC also supports about 80international fairs and exhibitions held in markets worldwide. U.S. exhibitors receive pre- and post-event assistance.  The USDAFAS sponsors about 15 major shows overseas each year.  
**Participate in Trade Missions**
     Participating in overseas trade missions is yet another wayto meet foreign buyers.  Public/private trade missions are oftenorganized cooperatively by federal and state international tradeagencies and trade associations.  Arrangements are handled foryou so that the process of meeting prospective partners or buyersis simplified.
     Matchmaker Trade Delegations are DOC-sponsored trademissions to select foreign markets.  Your company is matchedcarefully with potential agents and distributors interested inyour product.  Tennessee-based Shaffield Industries, a futonmanufacturer, reaped excellent returns as a result of a 1991Matchmaker trade mission to Asia:
     "I was especially surprised at the high-level ofappointments scheduled for us during the Matchmaker trademission.  Each was a true prospect," stated David Goff,comptroller for Shaffield Industries.  As a result of themission, his company negotiated the sale of three containers ofhis product to South Korea and two containers to Taipei.
     Being properly prepared for the kinds of inquiries you mightencounter on overseas trade missions is important.  The SBAoffers pre-mission training sessions through its district officesand the SCORE program.  Contact your local SBA office for aschedule of upcoming "How to Participate Profitably in TradeMissions" seminars.
**Contact Multilateral Development Banks
     In developing countries, large infrastructure projects areoften funded by multilateral development banks such as the WorldBank, the African, Asian, Inter-American Development Banks andthe European Bank for Reconstruction and Development.Multilateraldevelopment bank (MDB) projects often represent extensiveopportunities for U.S. small businesses to compete for projectwork.  DOC estimates that MDB projects could amount to at least$15 billion dollars in export contracts for United Statesbusinesses.
     One U.S. small business that successfully entered theinternational marketplace by bidding on a World Bank project isDSI of Poestenkill, New York:
     "As a result of World Bank loans to the People's Republic ofChina, DSI received over $1 million dollars in contracts forlaboratory equipment," reports DSI President Dave Ferguson. Exports now account for 60-70 percent of DSI's business.
     Development bank projects can be an excellent way to startexporting.  Many U.S. small business exporters have benefitedfrom large MDB projects through subcontracting awards from largercorporations.
     A list of MDBs is included in Part II, The Exporter'sDirectory.  From their Washington, D.C. headquarters, many MDBshold monthly seminars to acquaint businesses with the MDBprocurement process.  Additionally, the DOC's Office of MajorProjects can be of assistance in identifying contracting andsubcontracting opportunities.
**QUALIFYING POTENTIAL BUYERS OR REPRESENTATIVES**
Once you locate a potential foreign buyer or representative,the next step is to qualify them by reputation and financialposition.  First, obtain as much information as possible from thecompany itself.  Here are a few sample questions you will want toask:-    What is the company's history and what are thequalifications and backgrounds of the principal officers?         Does the company have adequate trained personnel,facilities, resources to devote to your business?         What is their current sales volume?     
-     What is the size of their inventory?          How will they market your product (retail, wholesale ordirect)?        Which territories or areas of the country do theycover?     
-     Do they have other U.S. or foreign clients?  Are any ofthese clients your competitors?  It is important to obtainreferences from several current clients.         What types of customers do they serve?         Do you publish a catalogue?       
-   What is their sales force?  When you have this background information and arecomfortable about proceeding, then obtain a credit report abouttheir financial position.  DOC's World Trade Data Reports(WTDRs), available from your local District ITA Office, arecompiled by US&FCS officers.  A WTDR can usually provide anin-depth profile of the prospective company you areinvestigating.      There are also several commercial services for qualifyingpotential partners, such as Dun & Bradstreet's BusinessIdentification Service and Graydon reports.  U.S. banks and theircorrespondent banks or branches overseas, and foreign bankslocated in the United States can provide specific financialinformation.
     In this chapter we have discussed methods of market entry,how to find potential foreign buyers and representatives and howto qualify whom you will be doing business with overseas. Advance market research and preparation is the best way for asmall business to define a potential export market.     The next question that needs to be explored involves how toaccomplish the business of exporting -- that is, how the dealshould be structured, the topic of Chapter 4, "The ExportTransaction."
Chapter 4
**The Export Transaction Pricing
     Pricing products to be competitive in international marketscan be a challenge; pricing that works in one market may betotally uncompetitive in another.  Although there is no oneformula for establishing prices for exported products, there area number of strategic and technical considerations that you canmake in order to determine an appropriate pricing structure. 
     A pricing strategy is a key component of your exportmarketing plan.  The selected pricing structure should be anintegral part of your market penetration objectives.  Your goalswill vary depending on the target overseas market.  Are youentering the market with a new or unique product?  Are youselling excess or obsolete products?  Can your product demand ahigher price because of brand recognition or superior quality? Maybe you are willing to reduce profits to gain market share forlong-term growth.  Your pricing decisions will be affected byyour company's goals.
     It is important to obtain as much information as possible onlocal market prices as part of your market research.  Pricinginformation can be collected in several ways.  One source isoverseas distributors and agents of similar products ofequivalent quality.  When feasible, traveling to the countrywhere your products will be sold provides an excellentopportunity to gather pricing information.  U.S. Department ofCommerce (DOC) can also assist in determining appropriate pricesthrough its Customized Sales Survey.  
     Joseph S. Brown III, President of Bruce Foods Corp.,obtained pricing information for food products sold in overseasmarkets using the Commerce Department's Customized Sales Survey. Although exporting since 1946, Brown is constantly on thelook-out for new markets for his products: "We now export to 75countries," the Louisiana business owner says.
     To compile the Customized Sales Survey, DOC's US&FCSresearch specialists in the target country interview importers,distributors, retailers, wholesalers, end-users and localproducers of comparable products.  They also inspect similarproducts on the market.  Your customized report, available for afee, is usually completed within 45 days.
**Marketing Your Product
     To successfully market a product in a domestic market, themanufacturer must take into consideration consumer preference,industry standards, correct labelling and other consumer-drivenconsiderations.  
     When entering a foreign market, the manufacturer shouldconsider the tastes and preferences in each market as part ofmarketing strategy.  Frequently, only a small change may berequired to successfully market the product.  The color of theproduct, the design of the package, the size of the product allmay need adjustment.
     Consideration should be given to the product name (it mayinadvertently have a negative connotation in the local language),cultural and/or religious connotations, appearance of container,compliance to standards (different electrical power, metricdimensions and local product regulations).
     Another consideration when planning market strategy isunderstanding ISO 9000.  The International Organization ofStandardization (ISO) was founded in 1946 by 25 nationalstandardization organizations including the American NationalStandards Institute (ANSI).  Ninety countries now hold membershipin ISO.  
     In 1987, the ISO issued ISO 9000, a series of five documents(ISO 9000, 9001, 9002, 9003 and 9004) that provide guidance onthe selection and implementation of an appropriate qualitymanagement program (system) for a supplier's operations.  Thepurpose of the ISO 9000 series is to document, implement anddemonstrate the quality assurance systems used by companies thatsupply goods and services internationally.  ISO standards arerequired to be reviewed every five years.  Revised versions areexpected to be published in early 1994.  Information on thestatus of these revisions can be obtained from:
     The American Society for Quality Control (ASQC)     611 East Wisconsin Avenue     Milwaukee, WI 53202     Phone: 414/272-8575 or 800/248-1946     FAX: 414/272-1734
     There are three ways for a manufacturer to prove compliancewith the requirements of one of the ISO 9000 standards.  Manufacturers may evaluate their quality system and self-declarethe conformance of the system to one of the ISO 9000 qualitysystems.  Second-party evaluations occur when the buyer requiresand conducts quality system evaluations of suppliers.  Theseevaluations are mandatory only for companies wishing to becomesuppliers to that buyer.  Third-party quality systems andevaluations and registrations may be voluntary or mandatory andare conducted by persons or organizations independent of both thesupplier and the buyer.  Interpretations of an ISO 9000 standardmay not be consistent from one registrar to another.  
     The supplier's quality system is registered, not anindividual product.  Consequently, quality system registrationdoes not imply product conformity to any given set ofrequirements.  The demand for ISO 9000 registration in Europe andelsewhere seems to be coming primarily from the marketplace as acontractual rather than a regulatory requirement.  As conformityto the ISO 9000 standards becomes recognized and required byforeign and domestic buyers and used by manufacturers as acompetitive marketing tool, the demand for ISO 9000 compliance isexpected to increase in non-regulated areas.  It is thereforecritical for manufacturers to determine what are their buyers'requirements regarding ISO 9000 compliance.  Additionalinformation on U.S., foreign and international voluntarystandards, government regulations and rules of certification fornonagricultural products is available from:

     National Center for Standards and CertificationInformation(NCSCI)
     National Institute of Standards and Technology (NIST)     TRF Building, Room A163     Gaithersburg, MD 20899     Phone: 301/975-4040     FAX: 301/926-1559
     For information on the EC 1992 Single Market program, copiesof Single Market regulations, background information on the EC orassistance regarding specific EC trade opportunities or potentialproblems, contact:
     The Office of EC Affairs     International Trade Administration, Room 3036     14th and Constitution Avenue, N.W.     Washington, D.C. 20230     Phone: 202/482-5823     FAX: 202/482-2155
**Methods of International Pricing
     The cost-plus method of international pricing is based onyour domestic price plus exporting costs (documentation expenses,freight charges, customs duties and international sales andpromotional costs).  Any costs not applicable, such as domesticmarketing costs, are subtracted.  The cost-plus method allows youto maintain your domestic profit margin percentage, and thus toset a suitable price.  This method does not, however, take intoaccount local market conditions.  Your price may be too high tocompete in a foreign market.
     Different marketing costs and/or modifications to theproduct could change the cost basis dramatically, making theproduct either more or less costly for export.  As a result,using the "marginal-cost" method provides a more realistic meansof determining true cost of producing your product for export.
     To use the marginal-cost method, first determine the fixedcosts of producing an additional unit for export.  Fixed costsinclude production cost, overhead, administration and researchand development.  A cost saving may be realized if additionalunits of the product can be produced without increasing the fixedcosts.  There may also be instances where certain fixed costs arecovered by domestic production and do not need to be added toexport expenses.
     Product modification expenses, dictated by the targetmarket, are then added to the production costs to establish a"floor price."  The floor price serves as a threshold for thefirm to know when it would incur a loss.  Using the floor priceas a base, variable export costs for the product can be added. Some of the variable costs will be one-time or start-up expensesthat should be discounted appropriately.  Variable expensesinclude:
**Packaging  
     Local regulations and customs may require special labelling,translated instructions or different packaging to appeal to localtastes.  The selected mode of distribution may also require aparticular kind of packaging.
**Foreign Market Research   
     There may be fees for specialized services and publicationsused to gather market information. 
**Advertising and Marketing   
     Firms selling directly into new markets will most likely beresponsible for the entire promotional effort.  The firm canincur high initial outlays to establish product recognition inthe new market.  If an agent, distributor or trading company isemployed, they can handle advertising and marketing as part oftheir contract.
**Translation, Consulting and Legal Fees**
     Product instructions, sales agreements and otherdocumentation typically will need to be translated into the locallanguage.  Expert translation of product labeling andinstructions will enhance local marketing.  Although many salesagreements are standard, it is advisable to have legal counselreview binding documents.**Foreign Agent/Distributor Product Information and Training
Agentsand distributors may require special training in order toeffectively market and service your products.  This is true evenif the agent sells products similar to your firm's products. Training will not only enable the agent to better represent yourcompany's interests but gain a better understanding of yourparticular product.
**After-Sales Service Costs   
     Product warranties and service contracts will enhance yourproduct's image as a quality item.  An appropriate after salesservice guarantee can support your sales efforts in the newmarket.  Do not, however, promise service or warranties based onU.S. standards that you cannot deliver.
     After taking these expenses into account, insurance,freight, duties and a profit margin can be added to arrive at acustomer price.  Depending on the market, currency fluctuationscan affect significantly your locally based profit margin and thefinal price offered to the customer.  For new-to-exportcompanies, price products in U.S. dollars and request payment indollars.  This is not an unusual request.
**High-Price Option
     This approach may be appropriate if your company is sellinga new product or if you are trying to position your product orservice at the upper-end of the market.  Selecting this optionmay attract competition and limit the market for your productwhile, at the same time, produce big profit margins.
**Moderate-Price Option
     This is a lower risk approach as contrasted to the high- orlow-price option.  Here you should be able to match competitors,build a market position and produce reasonable profit margins.
**Low-Price Option
     This approach may be relevant if you are trying to reduceinventory and do not have a long term commitment to the market. You will, no doubt, impede competition but also produce lowprofit margins.     
     There may be no single strategy that is ideal for everycompany.  Often companies draw upon a mix of options for eachmarket or product.
Setting Terms of Sale
**Price Quotations**
     The pro-forma invoice is the most commonly used document togive price quotations to potential customers.  The quotation in apro-forma invoice is usually considered binding, although pricesmay change prior to final sale.  To prepare the invoice, youshould give a detailed description of the product, an itemizedlist of charges and sale terms.  Prices should be quoted inUnited States dollars to reduce foreign exchange risks.  Theinvoice should also indicate the period during which the pricequotation is valid.
     You should be familiar with the common terms of sale used ininternational trade before preparing your pro-forma invoice. International Commercial Terms (INCOTERMS) are the universallyrecognized terms used in export and import contracts.  Theseterms refer to the rights and obligations of each party:  whopays what costs; when title to goods is transferred; and wherethe goods should be delivered.  A complete list of INCOTERMSpublished in the book Incoterms 1990 can be obtained from theInternational Chamber of Commerce and should be a permanent partof your business library (see Part II, The Exporter's Directory).
**PRO-FORMA INVOICE***SHIPPER:                                Reference No. RB20693Smith and Jones Co.                     Date: July 18, 19935555 Railroad Ave. New York, N.Y. 10001                    Customer P.O. No.212-555-1234                                        Terms of Payment:                                        Estimated Date of Shipment**SOLD TO:                                SHIP TO:**Grupo Estevez, S.A. de C.V.             Juarez IndustrialeTamales No. 1 Piso 2                    454 Blvd. Cortez12345 Cd. Polanco Mexico                11115 Mexico D.F. Mexico 
VIA:  Aero Cortez**ITEM   QUANTITY    DESCRIPTION          UNIT PRICE   TOTAL PRICE**        100        Computer             US $50.00   US $5,000.00                     motherboards                                          FOB factory    5,000.00                                             Inland                                           Freight                                           Forwarder                                            fees           100.00                                            Air freight   1,200.00                   Five (5)                   sealed cartons          Insurance        20.00                     Gross weight:                        10 lbs.            C.I.F. Mexico  6,320.00  
Authorized signature/Title
     The above offering is based on current prices and is valid   60   days from invoice date.
     *NOTE:  This pro-forma invoice is only a sample.  It isadvisable to contact a freight forwarder in advance of shipping.
**NEGOTIATING SALES AND DISTRIBUTOR AGREEMENTS**
**Sales Contracts**
     Knowing how to include INCOTERMS in a contract is important,but this represents only one aspect of the sales agreement. Legal rights and obligations of the parties should be spelled outin a single document, which can be incorporated into the finalinvoice.  Frequently, the terms and conditions are contained onthe back of the invoice.
     Some of the terms and conditions necessary in a writtensales agreement include:

**Delivery Terms -- Risk of Loss
     A force majeure clause is standard in most agreements.  Thisclause excuses the exporter from responsibility where a defaultin performance is caused by events beyond the exporter's control,such as war, acts of God or labor problems.
**Payment and Finance Terms
     In addition to defining the terms of payment, provisionsshould be included for late payments, partial payments andremedies for non-payment.  The terms of payment should considerthe use of letters of credit.
**Warranties
     Sales contracts generally describe the goods and theirqualities, workmanship and durability.  In some cases, theexporter is obligated by the law in the country of import.   Theimporter will require the exporter to warrant that the goods meetcertain standards of construction and performance.
**Acceptance of Goods
     Frequently, the importer will insist upon the right toinspect the goods upon delivery; if found defective, the importercan reject them and refuse to pay.  However, the importer isstill liable for country-of-importation duties and other taxes. The export documents should reflect any such requirements.
**Intellectual Property Rights
     Protection of the exporter's patents, trademarks orcopyrights should be assured in the agreement.  However,protection under the laws of the foreign country are notautomatic, and you should not assume that your product isprotected.
**Taxes
     The obligations of the parties for payment of taxes otherthan customs duties should be defined in writing.
**Dispute settlement
     It is advisable to specify how and where any disputes willbe resolved, as well as which nation's law would be applied. Bear in mind that different countries have varying arbitrationlaws and systems which may apply.
**AGENT AND DISTRIBUTOR AGREEMENTS**
     If you choose to use an agent or distributor, it will benecessary to develop a formal contractual agreement.  Agent anddistributor agreements spell out in more detail the issuesmentioned above and define other aspects of the relationshipbetween the parties to the agreement.   
     In the contract it is important to:
-     specify the goods and/or services covered;         describe the agent or distributor's sales territory,and whether they will have exclusive or non-exclusive salesrights;       set the length of the term for which the agreement isapplicable and agree upon specified minimum sales volumes andobjectives;
-    outline protection of intellectual property;          describe other types of obligations imposed on theparties, violations of which would justify termination of thecontract; and   list specific intellectual property rights granted tothe agent or distributor.
     When negotiating and drafting contractual agreements, it isrecommended that you consult an attorney with experience ininternational trade and exporting.  Your company's businesslawyer may be able to handle your questions or refer you to an"export-oriented" attorney.  Your local bar association mayprovide referral services, as well.  
     Under agreement with the Federal Bar Association and DOC,SBA sponsors the Export Legal Assistance Network (ELAN).  ELAN isa network of attorneys located throughout the United States whospecialize in international trade.  Your local SBA office canassist in locating an ELAN attorney who will provide a free,initial legal consultation to discuss your export-relatedquestions. 
     As an initial introduction, however, you may want to reviewthe information contained in International Business Practices,which covers the legal aspects of doing business in over 100countries.  Copies are available from US&FCS offices or from theGovernment Printing Office.
     Terms for financing export sales should be discussed duringcontract negotiations.  While the U.S. seller will want to bepaid as soon as possible, the foreign buyer will want to delaypayment as long as possible, preferably until after the goods areresold.  These two conflicting objectives will factor into anynegotiations on export financing.
     In addition to reaching a compromise on the method ofpayment, the U.S. exporter must also be able to offer the foreignbuyer favorable financing terms -- otherwise the sale could belost to a foreign competitor with an equivalent product butbetter payment terms.
     The final step in completing the export transaction isarranging for payment, the subject of Chapter 5, "ExportFinancing."
Chapter 5
**Export Financing**
**FINANCING EXPORT SALES**
     Few would disagree that small businesses must look overseasfor profit opportunities in the 1990s.  However, to competesuccessfully, small firms must offer financing arrangements thatare competitive with exporters of other nations.  This chapterwill discuss three major influences on an exporter's ability toarrange competitive financing:
-     today's banking environment          how to approach a lender         methods of payment 
**UNDERSTANDING THE BANKING ENVIRONMENT**
     In the United States, most small firms turn first to theirlocal banks for export finance assistance.  However, during thepast decade many banks have decided not to focus on exportfinancing.  
     The banks' reasons for doing so have varied -- many cuttheir international operations due to the huge losses theyincurred on overseas debt; others may have chosen to concentrateon more lucrative lines of business, such as home equity loans ormergers and acquisitions.  
     Consequently, during the 1980s export finance expertise inmany U.S. banks deteriorated.  Even today, most smaller banks donot retain any staff with expertise in international trade.  Thisis not to say, however, that such help is unavailable -- onlythat small businesses must be persistent and tenacious in theirefforts to find it.  For example, if a small business loanofficer is unwilling to work with his or her bank's internationalstaff (or the bank is unwilling to work with a correspondent),exporters should consider establishing a second bankingrelationship or, if necessary, moving all their accounts to amore aggressive lender.  Don't be afraid to shop.
     Given the difficulty most small business exporters face whenseeking financing, it is imperative that financial arrangementsbe made in advance.  Finding a lender willing to consider such arequest requires that the borrower ensure that the purpose of theloan makes sense for the business, and that the request is areasonable amount.  Prospective borrowers also should understandsome key distinctions before beginning discussions with a lender.
**HOW TO APPROACH YOUR LENDER FOR EXPORT FINANCING**
**Venture Capitalists and Lenders
     Before approaching a bank for financial assistance, smallexporters should understand the distinction between venturecapitalists and lenders.  Venture capitalists invest in abusiness with the expectation that as the business grows, theirequity in the business will grow exponentially.  On the otherhand, lenders are not in the venture capital business -- theymake their money on the difference between the rate at which theyborrow money and the rate at which they lend to their customers.International Trade Services and Export Lending
     Small exporters should also understand the distinctionbetween international trade services and international tradelending.  Although many banks offer international trade services,such as advising and negotiating letters of credit, the banks'international divisions are not authorized to lend money. International lenders, on the other hand, have the authority tomake loans, as well as provide related services.  Exportersshould verify that the bank officer with whom they are dealinghas the authority to lend for an export transaction. 
**Working Capital Financing and Trade Financing**
     It is also important to note the difference between generalworking capital financing and trade financing.  A small firm'sability to qualify for general working capital financing dependson, among other things, the strength of its balance sheet and itsprospects for generating sufficient earnings over the life of aloan to repay it.  Trade finance, on the other hand, generallyrefers to financing individual transactions (or a series of liketransactions).  In addition, trade finance loans are oftenself-liquidating -- that is, the lending bank stipulates that allsales proceeds are to be collected by it, and then applies theproceeds to pay down the loan.  The remainder is credited to theaccount of the borrower.  
     The self-liquidating feature of trade finance is critical tomany small, undercapitalized businesses.  Lenders who mayotherwise have reached their lending limits for such businessesmay nevertheless finance individual export sales, if the lendersare assured that the loan proceeds will be used solely forpre-export production; and any export sale proceeds will first becollected by them before the balance is passed on to theexporter.  Given the extent of control lenders can exercise oversuch transactions and the existence of guaranteed paymentmechanisms unique to -- or established for -- internationaltrade, trade finance can be less risky for lenders than generalworking capital loans.  **Pre-export, Accounts Receivable and Market Development Financing     Exporters should understand the distinctions between thevarious types of trade finance.  Most small businesses needpre-export financing to help with the expense of gearing up for aparticular export sale.  Loan proceeds are commonly used to payfor labor and materials or to acquire inventory for export sales. Others may be interested in foreign accounts receivablefinancing.  In that case, exporters can borrow from their banksan amount based on the volume and quality of such accountsreceivable.  Although banks rarely lend 100 percent of the valueof the accounts receivable, many will advance up to 80 percent ofthe value of qualified accounts.  Foreign credit insurance (suchas Eximbank's Export Credit Insurance Program) is often used toenhance the quality of such accounts.
     Financing for foreign market development activities, such asparticipation in overseas trade missions or trade shows, is oftendifficult for small businesses to arrange.  Most banks arereluctant to finance such activities because, for many smallfirms, their ability to repay such loans depends on their successin consummating sales while on a mission -- prospects that inmany cases are speculative.  Although difficult for many smallfirms to do, the recommended source for financing such activitiesis through the working capital of the firm or, in certain cases,through the use of personal credit cards.
     Finally, take time to make sure your banker understands yourbusiness and products.  Have a detailed export plan ready and,most important, be able to clearly show how and when a loan willbe repaid.
**METHODS USED TO FINANCE EXPORTS**
     A small business exporter's principal concern should be toensure that he or she will be paid in full and on time.  Foreignbuyers may have concerns as well, including uncertainty that thegoods ordered will meet the necessary specifications and arrivein a timely manner.  As a result, it is imperative that the termsof payment be agreed upon in advance and in a manner satisfactoryto both parties.
     The payment method exporters use can significantly affectthe financial risk of a particular export sale.  In general, themore generous the sales terms are to a foreign buyer, the greaterthe risk to the exporter.  The primary methods of payment forinternational transactions, ranked in order of most secure to theexporter to least secure, include:-      payment in advance          letters of credit         documentary collections (drafts)     
-     consignment          open account
**Payment in advance
     Paying in advance is often too expensive and risky forforeign buyers.  Yet, this method of payment is not uncommon. Requiring full payment in advance may cause lost sales to aforeign (or even another domestic) competitor who is able tooffer more attractive payment terms.  In some cases, however,where the manufacturing process is specialized, lengthy orcapital-intensive, it may be reasonable to insist upon partialpayment in advance, or on progress payments.
**Letters of Credit (LC)
     A letter of credit is an internationally recognizedinstrument issued by a bank on behalf of its client, thepurchaser.  The LC actually represents the bank's guarantee topay the seller, provided the conditions specified on it arefulfilled.  Of course, the purchaser pays its bank a fee torender this service.
     The rationale behind the use of an LC is reliance by theseller on the credit worthiness of the bank, which is normallymore reliable than that of the purchaser.  It is also easier toverify by the seller's bank.  Moreover, this vehicle can bestructured to protect the purchaser because no payment obligationarises until the goods have been satisfactorily delivered aspromised.
     The conditions of the LC are spelled out on the LC itself. When the conditions of delivery have been satisfied (usually bythe documented, satisfactory and timely delivery of the goods),the purchaser's bank makes the required payment directly to theseller's bank in accordance with the terms of payment (in 15, 30,60 or 90 days, whichever is specified).
     The greatest degree of protection is afforded to the sellerwhen the LC has been issued by the buyer's bank and confirmed bythe seller's bank.  LCs may be utilized for one-timetransactions, or they can cover multi-shipments, depending uponwhat is agreed between the parties.  Also, make sure you candeliver within the terms of the LC.  It is suggested that youreview the details of such documentation with a bank that has LCexperience.
**LETTER OF CREDIT**
**Buyer**Agrees to buy productAgrees to ship goods if LC  is opened     Requests bank to issue LC         LC assurespayment                                      if proper documents are                                           presented
                                     Ships goods and submits                                           shipping documents to bank                                        for payment
   Verifies documents for  compliance
Payment is made immediately or upon                                               maturity of accepted draftPayment is made when documents received or accepted      
**Documentary Collection (Drafts)
     Documentary collections involve the use of a draft, drawn bythe seller on the buyer, requiring the buyer to pay the faceamount either on sight (sight draft) or on a specified date inthe future (time draft).  The draft is an unconditional order tomake such payment in accordance with its terms, which specify thedocuments needed before title to the goods will be passed.
     Because title to the goods does not pass until the draft ispaid or accepted, both the buyer and seller are protected. However, if the buyer defaults on payment of the draft, theseller may have to pursue collection through the courts (orpossibly, by arbitration, if such had been agreed upon betweenthe parties).  The use of drafts involves a certain level ofrisk; but they are less expensive for the purchaser than lettersof credit.
**DOCUMENTARY COLLECTIONS**
BUYER      SELLER    Agrees to buy products         Agrees to be paid via                                             documentary collection 
                                     Ships goods and submits                                           shipping documents to bank                                        for collection or                                                 acceptance     Documents released to buyer against payment or acceptance  Sellerreceives payment at sight upon acceptance 
**Consignment
     When goods are sold subject to consignment, no money isreceived by the exporter until after the goods have been sold bythe purchaser.  Title to the goods remains with the exporteruntil such time as all the purchase conditions are satisfied.  Asa practical matter, consignment is very risky.  There isgenerally no way to predict how long it might take to sell thegoods; moreover, if they are never sold, the exporter would haveto pay the costs of recovering them from the foreign consignee.
**Open account
     An open account transaction means that the goods aremanufactured and delivered before payment is required (forexample, payment could be due 14, 30, or 60 days followingshipment or delivery).  In the United States, sales are likely tobe made on an open-account basis if the manufacturer has beendealing with the buyer over a long period of time and hasestablished a secure working relationship.  In internationalbusiness transactions, this method of payment cannot be usedsafely unless the buyer is credit worthy and the country ofdestination is politically and economically stable.  However, incertain instances it might be possible to discount open accountsreceivable with a factoring company or other financialinstitution, referred to above.  
     The following diagram assesses the relative strengths andweaknesses of each method of payment:**METHOD****USUAL TIME OF PAYMENT****GOODSAVAILABLE TO BUYER****RISK TO EXPORTER****RISK TOIMPORTER**Cash in advance    Before shipment  After paymentNone  Dependent upon exporter shippinggoodsLetter of credit After shipment when documents complying with LC arepresented  After payment  Very little  Relieson exporter to ship goodsDocumentary Collection Sight Draft   On presenta tion of draft tobuyer  After payment  If draft unpaid, must dispose ofgoods Relies on exporter to ship goodsDocumentary Collection- Time Draft   On maturity of draft  Before payment  Relies on buyer to pay draft; no control ofgoods Almost noneConsignment After sale      Before payment    High LowOpen  Account       After shipment as agreed     Beforepayment  Relies on buyer to pay his accountNone
**PRIVATE SECTOR EXPORT FINANCING RESOURCES**
**Commercial Banks
     International trade transactions traditionally have beenfinanced by commercial banks.  Commercial banks can make loansfor pre-export activities.  They can also help process letters ofcredit, drafts and other methods of payment discussed in thischapter.  Banks have also become increasingly involved in makingexport loans backed by United States government export loanguarantees. 
     Many larger banks have international departments which canhelp with your company's particular export finance needs.  Ifyour bank does not have an international department, it probablyhas a correspondent relationship with a larger bank that canassist you.
**Private Trade Finance Companies
     Private trade finance companies are becoming increasinglymore commonplace. They utilize a variety of financing techniquesin return for fees, commissions, participation in thetransactions or combinations thereof.  International tradeassociations, such as a District Export Council, can assist youin locating a private trade finance company in your area.
**Export Trading and Management Companies**
     Both EMCs and ETCs provide varying ranges of exportservices, including international market research and overseasmarketing, insurance, legal assistance, product design,transportation, foreign order processing, warehousing, overseasdistribution, foreign exchange and even taking title to asupplier's goods.  All of these services can leverage the limitedresources of small businesses.
**Factoring Houses
     Factoring houses, also called factors, purchase exportreceivables on a discounted basis.  Using factors can enable theexporter to receive immediate payment for goods while at the sametime alleviating the hassles associated with overseascollections.
     Factors purchase export receivables for a percentage fee at2-7 percent below invoice value, depending on the market and typeof buyer.  The percentage rate will depend on whether the factorpurchases the receivables on a recourse or non-recourse basis. In the case of a non-recourse purchase, the exporter is not boundto repay the factoring house if the foreign buyer defaults orother collection problems arise.  Therefore, the percentagecharge will be greater with non-recourse purchases.
**Forfaiting Houses
     Similar to factoring, exporters relinquish their rights tofuture payment in return for immediate cash.  Where a debtobligation exists between the parties, it is sold to a thirdparty on a non-recourse basis, but is guaranteed by anintermediary bank.
     One U.S. exporter which used forfaiting found the benefitssubstantial:
     Ed Lamb, President of Custom Die and Insert of Lafayette,Louisiana, was able to sell a 180-day letter of credit through aforfaiting house and got paid 178 days sooner.  Forfaitingenabled Custom Die and Insert to consummate a $2.3 million-dollarexport order to the Middle East.
**GOVERNMENT EXPORT FINANCING RESOURCES**
     Because private sector financing providers will only assumelimited risk regarding foreign transactions, the U.S. governmenthas become increasingly involved in providing export financingassistance.  
     U.S. government export financing assistance comes in theform of guarantees made to U.S. commercial banks which in turnmake the loans to exporters.  Federal agencies, as well ascertain state governments, have their own particular programs asnoted below: 
**U.S. Small Business Administration (SBA)**     SBA provides financial and business development assistanceto help small businesses develop export markets.  The SBA assistsbusinesses in obtaining the capital needed to explore, establishor expand international markets.  SBA's export loans areavailable under SBA's guarantee program.  As a prospectiveapplicant, you should request that your lender seek SBAparticipation, if the lender is unable or unwilling to make adirect loan.
     The financing staff of each SBA district and branch officeadministers the financial assistance programs.  You can contactthe finance division of your nearest SBA office for a list ofparticipating lenders.  The business development staff of eachSBA district and branch office can provide counseling on how torequest export financial assistance from a lender.
     Borrowers can use different SBA loan programs and types ofloan guarantees simultaneously, as long as the totalSBA-guaranteed portion does not exceed the agency's $750,000statutory loan guarantee limit to any one borrower.  The lendermay charge a maximum interest rate of 2.75 percentage pointsabove the New York prime interest rate, or 2.25 percentage pointsabove New York prime if the maturity is less than seven years. 
**Regular Business Loan Program
     The SBA can guarantee up to 90 percent of a bank loan up to$155,000.  For larger loans, the maximum guaranty is 85 percentup to $750,000.
     Small businesses that need money for fixed assets and forworking capital may be eligible for the SBA's regular 7(a)business loan guarantee program.  Loan guarantees for fixed-assetacquisition have a maximum maturity of 25 years.  Guarantees forgeneral purpose working capital loans have a maximum maturity ofseven years.  Export trading companies (ETCs) and exportmanagement companies (EMCs) also may qualify for the SBA'sbusiness loan guarantee program.
     To be eligible, the applicant's business generally must beoperated for profit and fall within size standards set by SBA.Loans cannot be made to businesses involved in creation ordistribution of ideas or opinions, such as newspapers, magazinesand academic schools.  Other types of ineligible borrowersinclude businesses engaged in speculation or investment in rentalreal estate. 
**Export Revolving Line of Credit Program**     The Export Revolving Line of Credit (ERLC) Program offers acredit line up to 36 months.  Any number of withdrawals andrepayments can be made as long as they do not exceed the dollarlimit of the credit line, and the disbursements are made withinthe stated maturity period.  Loan maturities are generally for 12months, with options to renew.
     Loans can be used to finance labor and materials formanufacturing or wholesaling for export, to develop foreignmarkets or to finance foreign accounts receivable.  Foreignbusiness travel and participation in trade shows are also amongthe eligible uses, but a regular 7(a) business loan may be moreappropriate for these purposes.
     Applicants must satisfy eligibility criteria established forall SBA loans.  Also, the applicant must have been in business --not necessarily exporting -- for at least 12 months' continuousoperation before filing an application.  The 12-month requirementmay be waived by the SBA regional office, if the firm'smanagement has sufficient export experience or enough managementability to warrant an exception.
**The International Trade Loan Program
     The International Trade Loan Program provides long-termfinancing to help small businesses compete more effectively andto expand or develop export markets.
     Loan maturities cannot exceed 25 years, excluding theworking capital portion of the financing. The SBA's guaranteecannot exceed 85 percent of the loan amount.  The agency'smaximum share for facilities or equipment loans is $1 million,plus $250,000 for working capital.
     Proceeds may be used to purchase or upgrade facilities orequipment, and to make other improvements that will be usedwithin the U.S. to produce goods or services.
     No debt payment is allowed.  Proceeds can be used to buyland and buildings; build new facilities; renovate, improve orexpand existing facilities; and purchase or reconditionmachinery, equipment and fixtures.  The working capital portionof the borrowing could be in the form of either an ERLC or aportion of the term loan.
     Applicants must establish either of the following to meeteligibility requirements:-     Loan proceeds will significantly expand existing exportmarkets or develop new ones.           The applicant's business is adversely affected byimport competition.
**Small Business Investment Company (SBIC) Financing**     A Small Business Investment Company (SBIC), approved andlicensed by the SBA, may also provide equity or working capitalexceeding the agency's $750,000 statutory maximum.  SBICs caninvest in export trading companies in which banks have equityparticipation as long as other SBIC requirements are met. 
**Export-Import Bank of the United States (Eximbank)**
     Eximbank is an independent federal government agencyresponsible for assisting the export financing of U.S. goods andservices through a variety of information service and insurance,loan and guarantee programs.  Eximbank has undertaken a majoreffort to reach more small business exporters with betterfinancing facilities and services, to increase the value of thesefacilities and services to the exporting community, and toincrease the dollar amount of Eximbank's authorizationssupporting small business exports.
     Eximbank's export financing hotline provides information onthe availability and use of export credit insurance, guarantees,direct and intermediary loans extended to finance the sale ofU.S. goods and service abroad.  
     Briefing programs are offered by Eximbank to the smallbusiness community.  The program includes regular seminars, groupbriefings and individual discussions held both within the Bankand around the country.  
     Export credit insurance programs reduce an exporter's riskand can be obtained through an insurance broker or fromEximbank's Insurance Division.  A wide range of policies isavailable to accommodate many different export credit insuranceneeds.  Insurance coverage:
-     protects the exporter against the failure of foreignbuyers to pay their credit obligations for commercial orpolitical reasons;          encourages exporters to offer foreign buyerscompetitive terms of payment;         supports an exporter's prudent penetration of higherrisk foreign markets; and     
-     gives exporters and their banks greater financialflexibility in handling overseas accounts receivable.       During the first two years, the new-to-export insurancepolicy offers a short-term (up to 180 days) insurance policygeared to meet the particular credit requirements of smaller,less experienced exporters.  Under the policy, Eximbank assumes95 percent of the commercial and 100 percent of the politicalrisk involved in extending credit to the exporter's overseascustomers.  This policy frees the smaller exporter from "firstloss" commercial risk deductible provisions that are usuallyfound in regular insurance policies.  The special coverage isavailable to companies which are just beginning to export, orhave an average annual export credit sales volume of less than$2,000,000 for the past two years, and meet the SBA definitionsof small business. 
     The umbrella policy also covers short-term receivables ofcompanies with only limited experience in export trade. Thesepolicies are available to commercial lenders, state agencies,finance companies, export trading and management companies,insurance brokers and similar agencies to insure their clients'receivables.  Exporters are eligible if they have average annualexport credit sales of less than $2,000,000 for the past twoyears and meet the SBA definitions of small business.
**Loan Programs
     The Working Capital Loan Guarantee Program assists smallbusinesses in obtaining crucial working capital to fund theirexport activities.  The program guarantees 100 percent of theprincipal and interest on working capital loans extended bycommercial lenders to eligible U.S. exporters.  The loan may beused for pre-export activities such as the purchase of inventory,raw materials, the manufacture of a product or for marketing.Eximbank requires the working capital loan to be secured withinventory of exportable goods, accounts receivable or by otherappropriate collateral. 
**Direct and Intermediary Loans 
     Eximbank provide two types of loans, direct loans to foreignbuyers of U.S. exports and intermediary loans to fund responsibleparties that extend loans to foreign buyers of U.S. capital andquasi-capital goods and related services.  Both the loan andguarantee programs cover up to 85 percent of the U.S. exportvalue, with repayment terms of one year or more. 
     Direct loans of any size and long-term loans tointermediaries are offered at the lowest interest rate permittedunder the Organization for Economic Cooperation and Development(OECD) arrangement for the market and term.
     Medium-term intermediary loans are structured as "standby"loan commitments.  Under this arrangement, the intermediary mayborrow against the remaining undisbursed loan at any time duringthe term of the underlying debt obligation.  There is aprepayment fee if it is triggered by prepayment of the foreignborrower.
**Guarantee Programs
     Guarantees of the Eximbank provide repayment protection forprivate sector loans to credit worthy buyers of U.S. capitalequipment and related services.  The guarantee is available aloneor may be combined with an intermediary loan.
     Most guarantees provide comprehensive coverage of bothpolitical and commercial risks but political risks only coverageis also available.  The guarantee covers 100 percent of principaland interest.  In the event of a default, the guaranteed lendermust file a claim no less than 30 and no more than 150 days afterthe default.  The claim will be paid within five business daysafter receipt.  
     Customary repayment terms for capital goods in internationaltrade are:**Contract Value****Maximum Term** Less than $75,0002 years $75,000 - $150,000  3 years$150,000 - $300,000 4 years $300,000 or more  5-10 years*
* depending on the natureof the sale and the OECD classification of the buyers'country.
     Loans for projects and large product acquisitions, such asaircraft and capital-intensive machinery, are eligible for longerterms while lower unit value items such as automobiles andappliances receive shorter terms. 
**Commodity Credit Corporation (CCC)
     The United States Department of Agriculture's CommodityCredit Corporation (CCC) operates Export Credit GuaranteePrograms to provide United States agricultural exporters orfinancial institutions a guarantee that they will be repaid forshort- and intermediate-term commercial export financing toforeign buyers.  These programs protect against commercial ornoncommercial risk if the importer's bank fails to make payment. Under one program, the CCC will guarantee credit terms of up to 3years and under another, credit terms from 3 to 10 years areguaranteed.  (For more details, see Part II, The Exporter'sDirectory.)
**State Export Financing Programs 
     A number of state-sponsored export financing and loanguarantee programs are available.  Many cities and states haveestablished cooperative programs with the Eximbank and canprovide specialized export finance counseling.  Details of theseprograms are available through each state department of commerceor trade office.
     Arkansas, California, Delaware, Georgia, Indiana, Louisiana,Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey,New York, Nevada, North Carolina, Oklahoma, Pennsylvania, SouthCarolina, Texas, Utah, Virginia, Washington, and Wisconsin all provide direct or indirect export financing assistance.  
      Once an exporter determines the kind of export financingassistance to be used and which payment method, the next step isto arrange for delivery of the goods to the buyer's destination. It is important to assess the various transportation optionsavailable, the subject of Chapter 6, "Transporting GoodsInternationally."
Chapter 6
Transporting Goods Internationally Now that financing has beenarranged, steps must be taken to ensure that the goods for exportare packed and shipped properly to reach their destination.  Whentransporting goods internationally, proper documentation andcorrect packaging are critical to the export process.  
      One of the main differences between selling domestically andexporting is the documentation required.  Providing properdocumentation with your shipments is essential, if the goods areto arrive safely and on time.
     Although the paperwork involved in exporting may be moreburdensome and costly than that required for domestic sales, itshould not deter you.  Consider the case of Hood Equipment Inc.of Iron River, Wisconsin:
     "We began exporting our forestry equipment in 1977.  Nowexports amount to 40 percent of our sales.  While exportdocumentation requirements can be time consuming, 40 percent ofour sales depend on it so we have to do it," says export managerJoyce Hood.  Ms. Hood credits her company's international freightforwarder as "a great help."
**THE ROLE OF THE FREIGHT FORWARDER**
     The international freight forwarder acts as an agent for theexporter in moving cargo to the overseas destination.  Theseagents are familiar with the import/export rules and regulationsof foreign countries, methods of shipping, United Statesgovernment regulations and the documents connected with foreigntrade.
     Freight forwarders can assist with an order from the startby advising the exporter of the freight costs, port charges,consular fees, costs of special documentation and insurance costsas well as their handling fees -- all of which help in preparingthe pro-forma invoice and price quotations.  Freight forwardersmay also recommend the best type of packing for protecting themerchandise in transit; they can arrange to have the merchandisepacked at the port or containerized.  The cost for their servicesis a legitimate export cost that should be figured into the pricecharged to the customer.
     When the order is ready to ship, freight forwarders shouldbe able to review the letter of credit, commercial invoices,packing list to ensure that everything is in order.  Freightforwarders can also reserve the necessary space on board an oceanvessel, if the exporter desires.
     The exporter may ask the freight forwarder to makearrangements with the customs broker to ensure that the goodscomply with customs export documentation regulations.  Inaddition, they may have the goods delivered to the carrier intime for loading.  Freight forwarders may also prepare a bill oflading and any special required documentation.  After shipment,they can forward all documents directly to the customer or to thepaying bank. 
     In preparing your goods for international transport, youmust first determine what mode of transport you will use.  Whenshipping to Mexico and Canada, land transportation may be thepreferred method of transport.  Other forms of internationalshipments are sea and air.
     Maritime shipping is almost always slower and less expensivethan air.  However, an exporter must factor in the additionalcosts of sea freight, such as surface transportation to the dock. Another factor is the time value of money:  payment may not bemade until the ship reaches its destination -- ocean freight canbe significantly longer than air freight.  Your internationalfreight forwarder can assist in weighing the pros and cons ofdifferent modes of transportation.
     Once you have decided on the best mode of transporting yourgoods, you must begin to compile the necessary documents.   
**DOCUMENTATION**
**Export Documentation Checklist -- Documents Prepared Before theShipment
Commercial Invoice/Consular Invoice
     After the pro-forma invoice is accepted, the exporter mustprepare a commercial invoice.  The commercial invoice isnecessary for both the exporter and importer.
      The exporter needs the commercial invoice to prove ownershipand secure payment.  The description of the goods on thecommercial invoice must correspond exactly to the description inthe letter of credit or other method of payment.  There can be noexceptions.
     The importer needs the commercial invoice since it is oftenused by Customs authorities to assess duties.  For this reason,it is common practice to prepare a commercial invoice in Englishand in the language of the destination country.  The freightforwarder can advise you when a translated copy is necessary.
      Similar to a commercial invoice, a consular invoice isrequired by certain countries.  The consular invoice must beprepared in the language of the destination country and can beobtained from the country's consulate, and often must be"consularized."
     In some countries, the commercial invoice must be preparedon a special form known as a "customs invoice."  Your importermay request this of you.
**Export License**
     Export controls are based on the type of goods being shippedand their ultimate destination.  Most exports do not require alicense, per se.  Technically, most exports are shipped under a"general" license which does not require an application. 
      Should your particular export be subject to export controls,then a "validated" license must be obtained.  In general, yourexport would require a "validated" license if export of the goodswould:  threaten United States national security; affect certainforeign policies of the United States; or create short supply indomestic markets.  Check with the U.S. Department of Commerce's(DOC's) Bureau of Export Administration (BEA) to determine ifyour product may be subject to export controls (see Part II, TheExporter's Directory).
**Shipper's Export Declaration (SED)**
     The most common document used by exporters is the Shipper'sExport Declaration (Form 7525-V), for mail shipments valued atmore than $500, and required for other shipments valued at morethan $2,500.  In addition, a SED must be prepared for allshipments covered by an Individually Validated Export License(IVL), regardless of value.  The SED enables the Bureau of theCensus to monitor for statistical purposes the kinds of productsbeing exported from the United States.  The SED must be presentedto the carrier before the shipment departs.
      A sample SED follows:  
 A Shipper's Export Declaration Form 7525-V cannot be reproducedhere.  The form is available through the Superintendent ofDocuments, Government Printing Office, Washington, DC 20402 andlocal Customs district offices.  
Three items appearing on the SED may cause confusion:
Item 14, "Schedule B Description of Commodities"
      You will need to determine the official description of thecommodity you are shipping by obtaining a copy of the UnitedStates government publication entitled, HarmonizedSystem/Schedule B Statistical Classification of Domestic andForeign Commodities Exported from the United States and thentransfer the appropriate description onto the SED.  This isavailable from the Government Printing Office and from mostfreight forwarders.
Item 21, "Validated License No./General License Symbol"
      If your product for export is controlled, the "validated"license number is inserted in this space.  If you are exportingunder a "general license," one of eight possible "General LicenseSymbols" must be noted.  The three most commonly used symbolsare:
    G-Dest (General Destination): authorizes the export ofany items not requiring a validated license     
-     GLV (General License Limited Value): authorizes theexport of a single shipment of limited-value items          GTE (General License for Temporary Export): authorizesthe export of items for trade shows, training or temporary useabroad
Item 22, ECCN (Export Control Commodity Number)
      Only necessary when a "validated" license is required, theECCN is the number assigned to your commodity from the Bureau ofExport Administration's Commodity Control List.  This specialnumber must be supplied on the SED.
**Shipper's Export Declaration**
SED forms can be obtained through international freightforwarders, the Government Printing Office or local Customsdistrict offices.  The "Exact Way to Fill Out the Shipper'sExport Declaration" is available from the Bureau of the Census,Washington, DC 20233.
**Certificate of Origin (where applicable)
      Although the commercial invoice may contain a statement oforigin, some countries (particularly those subject to certainfree trade treaties, such as Canada or the Caribbean Basin)require Certificates of Origin.  Certificates of Origin allow forpreferential duty rates if the exporter's country has anagreement with the importer's country to allow entry of certainproducts at lower tariffs.
**Export Packing List**
     Considerably more detailed and informative than a standarddomestic packing list, an export packing list itemizes thematerial in each individual package and indicates the type ofpackage:  box, crate, drum, carton, etc.  It shows the individualnet, legal, tare and gross weights and measurements for eachpackage (in both U.S. and metric systems).  Package markingsshould be shown along with the shipper's and buyer's references. A copy of the packing list should be attached to the outside of apackage in a waterproof envelope marked "packing list enclosed." The list is used by the shipper or forwarding agent to determinethe total shipment weight and volume and whether the correctcargo is being shipped.  In addition, customs officials (bothU.S. and foreign) may use the list to check the cargo.  Theoriginal packing list should be forwarded along with your otheroriginal documents in line with the conditions of sale.
**Insurance Certificate**
     If the exporter is providing insurance, a certificate willbe needed confirming the type and amount of coverage for thegoods being shipped.  Normal accepted practice for coverage is110 percent of the CIF value.  This certificate should be made innegotiable form and must be endorsed before submitting to thebank.
**Inspection Certificate**
     Many foreign purchasers request that the seller certify thatthe goods being shipped meet certain specifications.  Thiscertification is usually performed by an independent inspectionfirm.
Documents Used During the Inland Movement of the Goods
**Shipper's Instructions**
     As an exporter, you are responsible for providing yourfreight forwarder with the necessary information regarding yourshipment.  The more details you provide, the greater the chancesof your goods moving problem free.  Your freight forwarder canprovide you with a commonly used form for noting instructions.
**Inland Bill of Lading**
     Inland bills of lading document the transportation of goodsbetween inland points and the port from where the export willemanate.  Rail shipments use "waybills on rail."  "Pro-forma"bills of lading are used in trucking.
**Delivery Instructions**
     This document is prepared by the freight forwarder givinginstructions to the trucking or railroad company where the goodsfor export are to be delivered.
**Dock Receipts**
     This document transfers shipping obligations from thedomestic to the international carrier as the shipment reaches theterminal.
**Bill of Lading/Air Waybill**
     Bills of lading and air waybills provide evidence to titleof the goods and set forth the international carrier'sresponsibility to transport the goods to their named destination.     There are two types of ocean bills of lading used totransfer ownership:
-     Straight (non-negotiable):  provides for delivery ofgoods to the person named in the bill of lading.  The bill mustbe marked "non-negotiable."          Shipper's Order (negotiable): provides for delivery ofgoods to the person named in the bill of lading or anyonedesignated.  
     The shipper's order is used with draft or letter-of-creditshipments and enables the bank involved in the export transactionto take title to the goods if the buyer defaults.  The bank doesnot release title to the goods to the buyer until payment isreceived.  The bank does not release funds to the exporter untilconditions of sale have been satisfied.
      When using air freight, "air waybills" take the place ofbills of lading.  Air waybills are only issued in non-negotiableform, therefore the exporter and the bank lose title to the goodsonce the shipment commences.  Most air waybills also contain acustoms declaration form.
**PACKAGING**
     Goods shipped for export require substantially greaterhandling than domestic shipments.  The exporter must pack thegoods to ensure that the weight and measurements are kept to aminimum, breakage is avoided, the container is theft proof, andthat the goods do not suffer the stresses of ocean shipment, suchas excess moisture.  
     In addition to proper packing, the exporter should be awarethat certain markings are necessary on goods transportedinternationally.  Some countries require that the country oforigin be marked on the outside of the container, and even haveregulations as to how the mark of origin should appear.
      The second type of marking with which the exporter should befamiliar is labeling.  Food and drugs must often carry speciallabeling as determined by the laws of the country of destination.
      Third, certain "shipping marks" must appear on the outsideof the package.  The weight and dimensions should be visible andany special instructions should be shown, and you may want torepeat these instructions in the language of the importer'scountry.  
     If your business is not equipped to package your goods forexport, there are export packaging companies which can performthis service for you.  Ask your international freight forwarderfor a list of export packaging companies in your area.
      Many businesses, after achieving success in exporting, or asan alternative to exporting, contemplate joint ventures orlicensing agreements with foreign companies to produce goodsoverseas.  Some companies even set up their own off-shoreoperations.  "Strategic Alliances and Foreign InvestmentOpportunities" are the topic of Chapter 7. 
Chapter 7
**Strategic Alliances and Foreign Investment Opportunities**
If your company is interested in delving further into theinternational trade arena, licensing, joint ventures andoff-shore operations should be explored.  While direct exportingmay be a profitable method of market entry for some businesses,licensing to a foreign company manufacturing rights to yourproduct or setting up a foreign manufacturing joint venture maybe viable alternatives.  
     In comparison, setting up off-shore manufacturing operationsmay be a more economical way of doing business:  Kansas-basedExtru-Tech, Inc. is exploring this possibility:
     "Because of the high cost of shipping our products and thecustoms duties involved, we are seriously considering setting upa manufacturing facility in the Far East, our biggest market,"says Extru-Tech President Kenneth E. Matson.
     This chapter will discuss the relative advantages anddisadvantages of alternatives to direct exporting, how to findlicensing and joint venture manufacturing partners and how tofinance overseas investment.
**STRATEGIC ALLIANCES**
**Licensing**
     Licensing involves a contractual arrangement whereby acompany licenses the rights to certain technological know-how,design and intellectual property to a foreign company in returnfor royalties or other kinds of payment.  This arrangement workedwell for a small business exporter from Virginia:
     "We export our 'Peace Frogs' T-shirts directly to Japan, butin Spain per capita income is lower, competition from domesticproducers is stronger, and tariffs are high, so we licensed aBarcelona-based company the rights to manufacture our product,"says Peace Frogs president Catesby Jones.  
     Licensing offers a small business many advantages, such asrapid entry into foreign markets and virtually no capitalrequirements to establish manufacturing operations abroad. Returns are usually realized more quickly than for manufacturingventures.
     The disadvantages of licensing are that control may be lostover manufacturing and marketing, and more important, that thelicensee may become a competitor if too much knowledge andknow-how is transferred.  Take care to protect trademarks andintellectual property.
     One way to help ensure that your intellectual property isprotected is to secure proper patent and trademark registration. In the interim before your patent is filed, you may ask apotential licensee to sign a confidentiality and non-disclosureagreement barring the licensee from manufacturing the productitself, or having it manufactured through third parties.  Makesure such agreements are not in violation of laws in the hostcountry.
     Patents should be filed with the appropriate foreigngovernment within one year of U.S. filing, in order to obtainpatent protection under the Paris Convention, the internationalagreement on patents.  Patent rules vary from country to country,so it is important to consult a competent international patentand trademark attorney. 
     Licensing to a foreign company the rights to your productwill require a carefully crafted licensing agreement.  Consultingan attorney is critical since rules on licensing also vary fromcountry to country.  Be careful that the agreement does notviolate host country antitrust laws.  Under the antitrust laws ofmany countries, the licensee cannot set the price at which aproduct will be re-sold by the licensor. 
**Foreign Manufacturing Joint Ventures**
     In contrast to licensing arrangements, foreign manufacturingjoint ventures allow for the U.S. company to have a stake andmanagement role in the foreign operation.  Joint ventures requiremore of a direct investment than licensing and require training,management assistance and technology transfer.
      Joint ventures can be equity or non-equity partnerships. Equity joint ventures are contractual arrangements with equalpartners.  Non-equity ventures involve the host country partnerin the arrangement with a greater percentage.  In some countries,a joint venture is the only way for a foreign company to set upoperations.  Laws often require that a certain percentage ofstock belong to a citizen of the host country.
      Foreign manufacturing joint ventures are risky in thatgeographical and cultural factors may interfere with the smoothrunning of operations.  You will have to deal with entirely newmanagement, located in a different country, whose first languagemay not be English.  
     Despite the drawbacks, using a foreign partner can have manybenefits:  the partner will have intimate knowledge of the targetmarket and may have business and political contacts to makemarket entry easier.
**Partner Selection Issues**
     Finding a suitable partner is critical to the success of anylicensing or manufacturing joint venture arrangement.However,this can be a time consuming and difficult process without properassistance.  Recognizing this fact, the United States governmenthas a special program to facilitate overseas partner selection.
     The DOC Matchmaker Trade Delegations are an excellent way tomake joint venture and licensee contacts.  Matchmakers provideone-on-one pre-screened business appointments for U.S. companiesin a foreign country.  One U.S. company which was particularlysuccessful as a result of a Matchmaker was Texas-based Made InUSA:
     "As a result of a Matchmaker trade mission, I was able toconsummate a Finnish joint venture which resulted in $6 millionin sales," says Jan Schwenk, a principal with Made in USA, asoftware development company.  Exports now account for 25 percentof the company's business.
     A limited number of Matchmaker Trade Delegations are heldeach year.  For companies unable to take advantage of aMatchmaker, you may consider the DOC's "Gold Key Service."  ForU.S. firms planning to visit a country, US&FCS overseas staffwill assist in developing a market strategy, setting uporientation briefings, making introductions to potential jointventure partners, providing interpreters for meetings and helpingwith follow-up planning.  Fees vary from country to country.      The steps that can be involved in foreign partner selectionare as follows:
-     Contact your local DOC office.  Discuss your targetmarket and what kind of partner you are seeking.  They can tellyou whether a Matchmaker program fitting your needs is scheduled. If not, they will send your request to the appropriate ForeignCommercial Service representative abroad.          A list of potential partners will be forwarded to you.Contact each one with letter of introduction.         After responses from potential candidates are obtained,conduct a financial and business reference check on the mostqualified candidates.  If you are unable to do this in-house, usea credit reporting firm.
    Make a trip abroad, either with a Matchmaker TradeDelegation or individually, to meet with potential licensees orjoint venture partners.
    Having made your final selection, begin contractnegotiations with the assistance of legal counsel.
**Foreign Investment Opportunities**
     Many companies find that, as a result of exportingprofitably and licensing or joint venturing the manufacture oftheir products abroad, it becomes a more viable method of marketentry to set up off-shore production operations. 
     Having only exported since 1988, Z-International, aMissouri-based label manufacturer, opened a plant in Germany in1990.  The plant now employs 12 people and invoiced over DM4,000,000 in 1991.  Company president Fritz Zschietzschmann saidthat Z-International's initial motivation in setting up the plantwas to reach the European market, but now he says, "The doors toall of Eastern Europe will be open for business."
     Off-shore manufacturing requires greater investment thanlicensing or joint venture manufacturing, but also affords thegreatest amount of control over operations.     Additional factors that may induce a company to set upoff-shore production include: high transportation costs,prohibitive tariffs or duties on imports, lower production costsand foreign government investment incentives, such as taxholidays.
     If you are seriously considering setting up an off-shoremanufacturing plant, you will need to assess whether to acquirean existing facility or to construct a new one.  The key factorsin this decision-making process are the legal and taxramifications, where to set up operations, and how to finance theforeign investment.  An off-shore operation may offer certain taxbenefits and other inducements for your company to make aninvestment in their country.
**Legal and Tax Implications**
     Much of the decision-making surrounding joint venture oroff-shore manufacturing involves legal and tax issues.  Somecountries actively encourage and promote foreign investment. Countries receptive to, or in need of, foreign investment mayhave relaxed laws on kinds and amounts of foreign investmentsallowed and may even offer certain tax benefits. 
      U.S. and host country attorneys and accountants should be anintegral part of the team you assemble to assess whether andwhere joint venture or off-shore manufacturing would beprofitable for your company.  
**Location, Partner Selection and Financial Assistance
     Foreign investment requires a substantial commitment of timeand money and a certain amount of risk.  Recognizing this fact,the United States government created a separate,business-oriented agency to support American investors enteringthe international marketplace.
**Overseas Private Investment Corporation (OPIC)
     OPIC is the lead agency assisting U.S. businesses interestedin investment overseas.
     OPIC programs are available if the project:-     is a new venture, or expansion of an existing business;          is located in a developing country where OPIC operates(OPIC operates in 140 countries);         will assist in the socio-economic development of thehost country;     
-     is approved by the host government; and          is consistent with the economic interests of the United
States and will not have a significant adverse effect on theUnited States economy or United States employment.
      If your potential overseas investment fits these criteria,OPIC can be an extremely useful resource.  OPIC offers a varietyof programs, including:  financing and political risk insuranceto help protect your investment and several pre-investmentservices.
**Pre-investment Assistance**
     OPIC sponsors investment missions to introduce U.S.businesses to key foreign private sector leaders, governmentofficials and potential joint venture partners.  Since itsinception in 1975, investment missions to 45 countries have beenorganized.
     SBA-guaranteed loans may be available to fund your company'sparticipation in such missions.
     In addition to pre-investment assistance, OPIC providesfinancing to assist in the setup of overseas operations and riskinsurance to mitigate some of the problems associated withinvestment in developing countries.
**Financing**
     Direct loans are available to ventures sponsored by, orsignificantly involving, U.S. small businesses or cooperatives. OPIC loans range from $500,000 to $6 million.  Loan guaranteesare also made to lending institutions in the range of $2 millionto $25 million, but can be as large as $50 million.
      OPIC has also underwritten a number of geographic venturefunds, including the Africa Growth Fund, the East EuropeanEnvironmental Fund and the Latin America Growth Fund.  If yourproject fits the criteria necessary to be eligible for accessthese funds, you may consider applying to the specific fund forfinancing assistance.
**Insurance**
     Private investors may be hesitant to undertake long-terminvestments abroad, given the political uncertainties of manydeveloping nations.  To alleviate these concerns, OPIC insuresU.S. investments against three major types of political risks: inconvertibility, expropriation and political violence, includingcivil strife.  
**Foreign Governments**
     Foreign governments, particularly in developing countries,often sponsor special agencies to aid and facilitate foreigndirect investment.  Some examples include the Mexican InvestmentBoard (MIB), the Portuguese Trade Commission and the BahrainMarketing and Promotions Office.  These foreign investmentpromotion agencies can provide detailed market information, jointventure leads and make contacts with key officials.  They oftenmaintain offices in the United States. 
      Some countries may also have special funds or financingarrangements to spur foreign investment in particular sectors orgeographical areas.  Foreign investment promotion agencies canlead you to these sources.  Contact the appropriate foreignembassy in the United States for the name of the agency which canassist you. 
**A FINAL WORD ON GOING GLOBAL**
     In Chapter 3, we discussed methods of market entry with anemphasis on exporting.  In this concluding chapter, we focussedon licensing, joint venture manufacturing and off-shoreproduction as options to be considered along with, or in additionto, exporting.
     How you decide to enter overseas markets will depend on avariety of factors unique to your own small business.  Goingglobal can be a challenging experience for a small business, butthe rewards can be substantial. As Roger Teigen, 1991 SBAOklahoma Exporter of the Year, put it:
     "There is a certain greater adulation in winning when we winin the export market rather than when we win in the U.S. market .. . it is exciting, it is exhilarating."
     Let this optimism and enthusiasm be your guide as you goglobal.  The U.S. Small Business Administration, as well asnumerous other government agencies at the state and federallevel, support and encourage your entry into the internationalarena.  There are a multitude of programs and a worldwide staffto assist you.
PART 2
The Exporter's Directory
**Section 1**
**U.S. Small Business Administration**
     Smaller firms seeking to participate in the internationalrealm are faced with challenges such as finding overseas markets,dealing with the initial complexities of exporting and financingexport sales.  The U.S. Small Business Administration (SBA)offers aid to current and potential small or minority exportersthrough two major programs: 1) business development assistanceand 2) financial assistance.  These programs are directed by theSBA's Office of International Trade in Washington, DC, andadministered through the SBA's network of field offices aroundthe country.

**Office of International Trade**          U.S. Small Business Administration           409 Third Street, S.W.           Washington, D.C. 20416           Phone: 202/205-6720           FAX: 202/205-7272

**ALABAMA**U.S. Small Business Administration2121 Eighth Avenue North, Suite 200Birmingham, AL 35203-2398Phone: 205/731-1338FAX:  205/731-1404
**ALASKA**U.S. Small Business Administration222 West Eighth Avenue, Suite 67Anchorage, AK 99513-7559Phone: 907/271-4838FAX:  907/271-4545
**ARIZONA**U.S. Small Business Administration2828 North Central Avenue, Suite 800Phoenix, AZ 85004-1025Phone: 602/640-2315FAX:  602/640-2360
U.S. Small Business Administration300 West Congress Street, Room 7-HTucson, AZ 85701-1319Phone: 602/670-4739FAX: 602/670-4763
**ARKANSAS**U.S. Small Business Administration2120 Riverfront Drive, Suite 100Little Rock, AR 72202Phone: 501/324-5278FAX:  501/324-5199
**CALIFORNIA****REGION IX OFFICE**U.S. Small Business Administration71 Stevenson StreetSan Francisco CA 94105-2939Phone: 415/744-6432FAX: 415/744-6435
U.S. Small Business Administration2719 North Air Fresno DriveSuite 107Fresno, CA 93727-1547Phone: 209/487-5605FAX: 209/487-5636
U.S. Small Business Administration330 North Brand Boulevard, Suite 1200Glendale, CA 91203-2304Phone: 818/552-3210FAX:  818/
U.S. Small Business Administration660 J Street, Suite 215 Sacramento, CA 95814-2413Phone: 916/551-1440FAX:  916/551-1439
U.S. Small Business Administration880 Front Street, #4-S-29San Diego, CA 92188-0270Phone: 619/557-7269FAX: 619/557-5894
U.S. Small Business Administration 211 Main Street, Fourth FloorSan Francisco, CA 94105-1988Phone: 415/744-6771FAX: 415/744-6812
U.S. Small Business Administration901 West Civic Center Drive, Suite 160Santa Ana, CA 92703-2352Phone: 714/836-2494FAX: 714/836-2528
U.S. Small Business Administration6477 Telephone Road, Suite 10Ventura, CA 93003-4459Phone: 805/642-1866FAX: 805/642-9638
**COLORADO****REGION VIII OFFICE**U.S. Small Business Administration633 - 17th Street7th Floor NorthDenver, CO 80202-2395Phone: 303/294-7072FAX: 303/294-7153
U.S. Small Business Administration721 19th Street, Fourth FloorDenver, CO 80202-2599Phone: 303/844-3984FAX: 303/844-6539
**CONNECTICUT**U.S. Small Business Administration330 Main Street, Second FloorHartford, CT 06106Phone: 203/240-4700
**DELAWARE**U.S. Small Business Administration920 North King Street, Suite 412Wilmington, DE 19801Phone: 302/573-6295FAX: 302/573-6060
**DISTRICT OF COLUMBIA**U.S. Small Business Administration1110 Vermont Avenue, N.W.,Suite 900P.O. Box 34500Washington, D.C. 20005Phone: 202/606-4000FAX: 202/606-4225
**FLORIDA**U.S. Small Business Administration1320 South Dixie Highway, Suite 501Coral Gables, FL 33146Phone: 305/536-5521FAX: 305/536-5058
U.S. Small Business Administration7825 Baymeadows Way, Suite 100B Jacksonville, FL 32256-7504Phone: 904/443-1910FAX: 904/443-1980
U.S. Small Business Administration501 East Polk Street, Suite 104Tampa, FL 33602-3945Phone: 813/228-2594FAX: 813/228-2111
**GEORGIA****REGION IV OFFICE**U.S. Small Business Administration1375 Peachtree Street, N.E., Fifth FloorAtlanta, GA 30367-8102Phone: 404/347-2797FAX: 404/347-2355
U.S. Small Business Administration1720 Peachtree Road N.W., Suite 600Atlanta, GA 30309Phone: 404/347-2441FAX: 404/347-4745
U.S. Small Business Administration52 North Main Street, Room 225Statesboro, GA 30458Phone: 912/489-8719FAX: 912/233-0712
**GUAM**U.S. Small Business Administration238 Archbishop F.C. Flores Street, Room 508Agana, GU 96910Phone: 671/472-7277FAX: 200/550-7365
**HAWAII**U.S. Small Business Administration  300 Ala Moana Boulevard, Room 2213P.O. Box 50207 Honolulu, HI 96850Phone: 808/541-2973FAX: 808/541-2976
**IDAHO**U.S. Small Business Administration1020 Main Street, Suite 290Boise, ID 83702Phone: 208/334-1782FAX: 208/334-9353
**ILLINOIS****REGION V OFFICE**U.S. Small Business Administration300 South Riverside Plaza, Suite 1975Chicago, IL 60606-6617Phone: 312/353-5000FAX: 312/353-3426
U.S. Small Business Administration500 West Madison, Suite 1250Chicago, IL 60661Phone: 312/353-5429FAX: 312/886-5108
U.S. Small Business Administration511 West Capitol Street, Third FloorSpringfield, IL 62701Phone: 217/492-4232FAX: 217/492-4867
**INDIANA**U.S. Small Business Administration429 North Pennsylvania Street, Room 100Indianapolis, IN 46204-1873Phone: 317/226-7269FAX: 317/226-7259
**IOWA**U.S. Small Business Administration373 Collins Road, N.E., Room 100Cedar Rapids, IA 52402-3147Phone: 319/393-2571FAX: 319/393-7585
U.S. Small Business Administration210 Walnut Street, Suite 749Des Moines, IA  50309Phone: 515/284-4026FAX: 515/284-4572
**KANSAS**U.S. Small Business Administration100 East English Street, Suite 510 Wichita, KS 67202Phone: 316/269-6273FAX: 316/269-6499
**KENTUCKY**U.S. Small Business Administration600 Martin Luther King Jr. Place, Room 188 Louisville, KY 40202Phone: 502/582-5971FAX: 502/582-5009
**LOUISIANA**U.S. Small Business Administration1661 Canal Street, Suite 2000New Orleans, LA 70112Phone: 504/589-6685FAX: 504/589-2339
U.S. Small Business Administration500 Fannin Street, Room 8A-08Shreveport, LA 75670Phone: 903/935-5257FAX: 903/935-5258
**MAINE**U.S. Small Business Administration40 Western Avenue, Room 512Augusta, ME 04330Phone: 207/622-8378FAX: 207/622-8277
**MARYLAND**U.S. Small Business Administration10 South Howard Street, Room 608Baltimore, MD 21202Phone: 410/962-2235FAX: 410/962-1805
**MASSACHUSETTS****REGION I OFFICE**U.S. Small Business Administration155 Federal Street, Ninth FloorBoston, MA 02110Phone: 617/451-2023FAX: 617/565-8695
U.S. Small Business Administration10 Causeway Street, Room 265Boston, MA 02222-1093Phone: 617/565-5590FAX: 617/565-5598
U.S. Small Business Administration1550 Main Street, Room 212Springfield, MA 01103Phone: 413/785-0268FAX: 413/785-0267
**MICHIGAN**U.S. Small Business Administration477 Michigan Avenue, Room 515Detroit, MI 48226Phone: 313/226-6075FAX: 313/226-4769
U.S. Small Business Administration300 South Front StreetMarquette, MI 49855Phone: 906/225-1108FAX: 906/225-1109
**MINNESOTA**U.S. Small Business Administration100 North Sixth Street, Suite 610-CMinneapolis, MN 55403Phone: 612/370-2343FAX: 612/370-2303
**MISSISSIPPI**U.S. Small Business AdministrationOne Hancock Plaza, Suite 1001Gulfport, MS 39501-7758Phone: 601/863-4449FAX: 601/863-0179
U.S. Small Business Administration101 West Capital Street, Suite 400Jackson, MS 39201Phone: 601/965-4384FAX: 601/965-4294
**MISSOURI****REGION VII OFFICE**U.S. Small Business Administration911 Walnut Street, 13th FloorKansas City, MO 64106Phone: 816/426-7762FAX: 816/426-5559
U.S. Small Business AdministrationLucas Place 323 West Eighth Street, Suite 501Kansas City, MO 64105Phone: 816/374-5868FAX: 816/374-6759
U.S. Small Business Administration815 Olive Street, Room 242St. Louis, MO 63101Phone: 314/539-6600FAX: 314/539-3785
U.S. Small Business Administration620 South Glenstone, Suite 110Springfield, MO 65802Phone: 417/864-7670FAX: 417/864-4108
**MONTANA**U.S. Small Business Administration301 South Park, Room 528, Drawer 10054Helena, MT 59626Phone: 406/449-5381FAX: 406/449-5474
**NEBRASKA**U.S. Small Business Administration11145 Mill Valley RoadOmaha, NE 68154Phone: 402/221-3604FAX: 402/221-3680
**NEVADA**U.S. Small Business Administration301 East Stewart Street, Room 301Las Vegas, NV 89125-2527Phone: 702/388-6611FAX: 702/388-6469
U.S. Small Business Administration50 South Virginia Street, Room 238Reno, NV 89505-3216Phone: 702/784-5268FAX: 702/784-5069
**NEW HAMPSHIRE**U.S. Small Business Administration143 North Main Street, Suite 202Concord, NH 03301-1257Phone: 603/225-1400FAX: 603/225-1409
**NEW JERSEY**U.S. Small Business AdministrationMilitary Park Building, Fourth Floor60 Park PlaceNewark, NJ 07102Phone: 201/645-2434FAX: 210/645-6265
U.S. Small Business Administration2600 Mt. Ephrain AvenueCamden, NJ 08104Phone: 609/757-5183FAX: 609/757-5335
**NEW MEXICO**U.S. Small Business Administration625 Silver Avenue, S.W., Third FloorAlbuquerque, NM 87102Phone: 505/766-1870FAX: 505/766-1057
**NEW YORK****REGION II OFFICE**U.S. Small Business Administration26 Federal Plaza, Room 31-08 New York, NY 10278Phone: 212/264-1450FAX: 212/264-0900
U.S. Small Business AdministrationClinton and PearlAlbany, NY 12207Phone: 518/472-6300FAX: 518/472-7138
U.S. Small Business Administration111 West Huron Street, Suite 1311Buffalo, NY 14202Phone: 716/846-4301FAX: 716/846-4418
U.S. Small Business Administration333 East Water StreetElmira, NY 14901Phone: 607/734-8130FAX: 607/734-4656
U.S. Small Business Administration35 Pinelawn Road, Room 102EMelville, NY 11747Phone: 516/454-0750FAX: 516/454-0769
U.S. Small Business Administration100 State Street, Room 410Rochester, NY 14614Phone: 716/263-6700FAX: 716/263-3146
U.S. Small Business Administration100 South Clinton Street, Room 1071Syracuse, NY 13260Phone: 315/423-5383FAX: 315/423-5370
**NORTH CAROLINA**U.S. Small Business Administration200 North College Street, Suite A2015Charlotte, NC 28202-2137Phone: 704/344-6587FAX: 704/344-6769
**NORTH DAKOTA**U.S. Small Business Administration657 Second Avenue North, Room 218 P.O. Box 3086Fargo, ND 58108Phone: 701/239-5131FAX: 701/239-5645
**OHIO**U.S. Small Business AdministrationFederal Building, Suite 850525 Vine StreetCincinnati, OH 45202Phone: 513/684-2814FAX: 513/684-3251
U.S. Small Business Administration1111 Superior Avenue, Suite 630Cleveland, OH 44114-2507Phone: 216/522-8236FAX: 216/522-2038
U.S. Small Business Administration2 Nationwide Plaza, Suite 1400Columbus, OH 43215-2542Phone: 614/469-6860FAX: 614/469-2391
**OKLAHOMA**U.S. Small Business Administration200 Northwest Fifth Street, Suite 670Oklahoma City, OK 73102Phone: 405/231-4301FAX: 405/231-4876
**OREGON**U.S. Small Business Administration222 S.W. Columbia Street, Suite 500Portland, OR 97201-6605Phone: 503/326-2682FAX: 503/326-2808
**PENNSYLVANIA****REGION III OFFICE**U.S. Small Business Administration475 Allendale Road, Suite 201King of Prussia, PA 19406Phone: 215/962-3700FAX: 215/962-3743
U.S. Small Business Administration100 Chesnut Street, Room 309Harrisburg, PA 17101Phone: 717/782-3840FAX: 717/782-4839
U.S. Small Business Administration960 Penn Avenue, Fifth FloorPittsburgh, PA 15222Phone: 412/644-2780FAX: 412/644-5446
U.S. Small Business Administration20 North Pennsylvania Avenue, Room 2327Wilkes-Barre, PA 18702Phone: 717/826-6497FAX: 717/826-6287
**PUERTO RICO**U.S. Small Business AdministrationCarlos Chardon Avenue, Room 691Hato Rey, PR 00918Phone: 809/766-5572FAX: 809/766-5309
**RHODE ISLAND**U.S. Small Business Administration380 Westminister Mall, Fifth FloorProvidence, RI 02903Phone: 401/528-4561FAX: 401/528-4539
**SOUTH CAROLINA**U.S. Small Business Administration1835 Assembly Street, Room 358 P.O. Box 2786Columbia, SC 29201Phone: 803/765-5298FAX: 803/765-5962
**SOUTH DAKOTA**U.S. Small Business Administration101 Main Avenue, Suite 101Sioux Falls, SD 57102Phone: 605/330-4231FAX: 605/330-4215
**TENNESSEE**U.S. Small Business Administration50 Vantage Way, Suite 201Nashville, TN 37228-1504Phone: 615/736-5039FAX: 615/736-7232
**TEXAS****REGION VI OFFICE**U.S. Small Business Administration8625 King George Drive, Building CDallas, TX 75235-3391Phone: 214/767-7659FAX: 214/767-7870
U.S. Small Business Administration300 East Eighth Street, Room 520Austin, TX 78701Phone: 512/482-5288FAX: 512/482-5290
U.S. Small Business AdministrationWilson Tower606 North Carancahus, Suite 1200Corpus Christi, TX 78476Phone: 512/888-3331FAX: 512/888-3418
U.S. Small Business Administration10737 Gateway West, Suite 320El Paso, TX 79935Phone: 915/540-5676FAX: 915/540-5636
U.S. Small Business Administration4300 Amon Carter Boulevard, Suite 114Ft. Worth, TX 76155Phone: 817/885-6504FAX: 817/885-6516
U.S. Small Business Administration222 East Van Buren, Suite 500Harlingen, TX 78550Phone: 210/427-8533FAX: 210/427-8537
U.S. Small Business Administration9301 Southwest Freeway, Suite 550Houston, TX 77074Phone: 713/773-6500FAX: 713/773-6550
U.S. Small Business Administration1611 10th Street, Suite 200Lubbock, TX 79401Phone: 806/743-7462FAX: 806/743-7487
U.S. Small Business Administration505 East Travis, Room 103Marshall, TX 75670Phone: 903/935-5257FAX: 903/935-5258
U.S. Small Business Administration7400 Blanco Road, Suite 200San Antonio, TX 78216Phone: 210/229-4501FAX: 210/229-4556
**UTAH**U.S. Small Business Administration125 South State Street, Room 2237Salt Lake City, UT 84138-1195Phone: 801/524-3215FAX: 801/524-4160
**VERMONT**U.S. Small Business Administration87 State Street, Room 205Montpelier, VT 05602Phone: 802/828-4422FAX: 802/828-4485
**VIRGIN ISLANDS**U.S. Small Business Administration4200 United Shopping Plaza, Suite 7ChristianstedSt. Croix, VI 00820-4487Phone: 809/778-5380FAX: 809/778-1012
U.S. Small Business AdministrationFederal Office Building, Room 210Veterans DriveSt. Thomas, VI 00802Phone: 809/774-8530FAX: 809/774-2312
**VIRGINIA**U.S. Small Business Administration400 North Eighth Street, Room 3015P.O. Box 10126Richmond, VA 23240Phone: 804/771-2400FAX: 804/771-8018
**WASHINGTON****REGION X OFFICE**U.S. Small Business Administration2615 Fourth Avenue, Room 440Seattle, WA 98121Phone: 206/553-5676FAX: 206/553-4155
U.S. Small Business Administration915 Second Avenue, Room 1792Seattle, WA 98174-1088Phone: 206/220-6520FAX: 206/220-6570
U.S. Small Business AdministrationFarm Credit Building, 10th Floor, EastWest 601 First AvenueSpokane, WA 99204-0317Phone: 509/353-2806FAX: 509/353-2829
**WEST VIRGINIA**U.S. Small Business Administration168 West Main St., Fifth FloorClarksburg, WV 26301Phone: 304/623-5631FAX: 304/623-0023
U.S. Small Business Administration550 Eagan Street, Suite 309Charleston, WV 25301Phone: 304/347-5220FAX: 304/347-5350
**WISCONSIN**U.S. Small Business Administration212 East Washington Avenue, Room 213Madison, WI 53703Phone: 608/264-5542FAX: 608/264-5541
U.S. Small Business Administration310 West Wisconsin Avenue, Suite 400Milwaukee, WI 53203Phone: 414/297-1231FAX: 414/297-1377
**WYOMING**U.S. Small Business Administration100 East B Street, Room 4001P.O. Box 2839Casper, WY 82602-2839Phone: 307/261-5761 FAX: 307/261-5499
 U.S. Department of Commerce           14th & Constitution Avenue, N.W. Room 3850           Washington, D.C. 20230           Phone: 202/482-2867           FAX: 202/482-5933
**U.S. DEPARTMENT OF COMMERCE**
     The U.S. Department of Commerce (DOC) encourages, serves andpromotes the nation's international trade, economic growth andtechnological advancement.  Within DOC, the International TradeAdministration (ITA) promotes world trade and is the officialU.S. government organization that coordinates all issuesconcerning trade development, international economic policy andprograms and trade administration.
     ITA units include: 1) country experts, 2) industry expertsand 3) domestic and overseas commercial officers.
**INTERNATIONAL TRADE ADMINISTRATION**          U.S. Department of Commerce          14th & Constitution Avenue, N.W. Room 3850          Washington, D.C. 20230          Phone: 202/482-2867          FAX: 202/482-5933

**INTERNATIONAL ECONOMIC POLICY OFFICES
Office of AfricaU.S. Department of CommerceRoom 3317, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-2175
Office of the Near EastU.S. Department of CommerceRoom 2039, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-4441FAX: 202/482-0778
Office of South AsiaU.S. Department of CommerceRoom 2031, HCH Building 14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-2954FAX: 202/482-3550
Office of Western EuropeU.S. Department of CommerceRoom 3043, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-5341FAX: 202/482-2897
Office of European Community AffairsU.S. Department of CommerceRoom 3036, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-5276FAX: 202/482-2155
Office of Eastern Europe, Russia and Independent StatesU.S. Department of CommerceRoom 3413, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-1104FAX: 202/482-4505
Office of Latin AmericaU.S. Department of CommerceRoom 3025, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-2436FAX: 202/482-4726
 Latin America/Caribbean Business Development Center Room 3203, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-0841FAX: 202/482-5933
Office of CanadaU.S. Department of CommerceRoom 3033, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-3101FAX: 202/482-3718
Office of MexicoU.S. Department of CommerceRoom 3826, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-0300FLASH FACTS:  202/482-4464 FAX: 202/482-5865
Office of China, Hong Kong and MongoliaU.S. Department of CommerceRoom 2317, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-5527FAX: 202/482-1576
Office of the Pacific BasinU.S. Department of CommerceRoom 3820, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-4008FAX: 202/482-4760
Deputy Assistant Secretary for JapanU.S. Department of CommerceRoom 2318, HCH Building14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-4527FAX: 202/482-0469
**U.S. DEPARTMENT OF COMMERCE COUNTRY DESK OFFICERS**
     Commerce Department Desk Officers are a source forinformation on trade potential for U.S. products in specificcountries.  Desk officers collect information on country'sregulations, tariffs, business practices, economic and politicaldevelopments, market size and growth and trade data.  
           U.S. Department of Commerce           14th and Constitution Avenue, N.W.           Washington, D.C. 20230
Country       Phone (202)         RoomAfghanistan    482-2954                    2029BAlbania        482-4915                    3413Algeria        482-1870                    2039Angola         482-4228                    3021Antigua and     Barbuda   482-2527                    3021 Anguilla       482-2527                    3021Argentina      482-1548                    3021Aruba          482-2527                    3020Armenia        482-2354                    3318Azerbaijan     482-23543318Australia      482-3646            2308Austria        482-2920            3039Bahamas        482-2527            3021Bahrain        482-5545            2039Baltic States  482-3952            3318Bangladesh     482-2954            2029BBarbados       482-2527            3021Belarus        482-2354            3318Belgium        482-5401            3042Belize         482-2527            3021Benin          482-4228            3317Bermuda        482-2527            3021Bhutan         482-2954            2029BBolivia        482-1659            3029Botswana       482-4228            3317Brazil         482-3871            3017Brunei         482-3875            2308Bulgaria       482-4915            3413Burkina Faso   482-4388            3317Burma          482-3875            2308Burundi        482-4388            3317Cambodia       482-3875            2308Cameroon       482-5149            3317Canada         482-3101            3303Cape Verde     482-4388            3317Caymans        482-2527            3021Central African Republic  482-4388            3020Chad           482-4385            3317Chile          482-1495            3017China          482-2462            2317       Colombia       482-1859            3025Comoro Islands 482-4564            3317Congo          482-5149            3317Costa Rica     482-2527            3021Cuba           482-2527            3021Cyprus         482-3945            3044Czechoslovakia 482-2645            3143Denmark        482-3254            3413Djibouti       482-4564            3317Dominica       482-2527            3021Dominican     Republic  482-2527            3021Ecuador        482-1659            3025Egypt          482-4441            2039El Salvador    482-2527            3020Equatorial Guinea    482-4228            3317Estonia        482-2354            3318Ethiopia       482-4564            3317European     Community 482-5278            3036Finland        482-3254            3413France         482-8008            3042Gabon          482-5149            3317Gambia         482-4388            3317Georgia        482-2354            3318Germany        482-2434            3409Ghana          482-5149            3317Greece         482-3945            3042Grenada        482-2527            3021Guadeloupe     482-2527            3021Guatemala      482-2527            3021Guinea         482-4388            3317Guinea-Bissau  482-4388            3317Guyana         482-2527            3021Haiti          482-2527            3021Honduras       482-2527            3020Hong Kong      482-3832            2317Hungary        482-2645            3413Iceland        482-3254            3037India          482-2954            2029Indonesia      482-3875            2308Iran           482-1870           2039Iraq           482-4441            2039Ireland        482-2177            3039Israel         482-1870            2039Italy          482-2177            3045Ivory Coast    482-4388            3317Jamaica        482-2527            3021Japan          482-2425            2318Jordan         482-1857            2039Kazakhstan     482-2354            3318Kenya          482-4564            3317Korea          482-4957            2308Kuwait         482-1860            2039Kyrgyzstan     482-2354            3318Laos           482-3875            2308Lebanon        482-4441            2039Lesotho        482-4220            3317Liberia        482-4388            3317Libya          482-5545            2039Luxembourg     482-5401            3046Macao          482-2462            2317Madagascar     482-4504            3317Malawi         482-4228            3317Malaysia       482-3875            2308Maldives       482-2954            2029BMali           482-4388            3317Malta          482-3748            3049Martinique     482-2527            3021Mauritania     482-4388            3317Mauritius      482-4564            3317Mexico         482-0300            3028Moldova        482-2354            3318Mongolia       482-2462            2317Montserrat     482-2527            3314Morocco        482-5545            2039Mozambique     482-5148            3317Namibia        482-4228            3317Nepal          482-2954            2029BNetherlands    482-5401            3039Netherlands Antilles  482-2527            3021New Zealand    482-3647            2308Nicaragua      482-2527            3021Niger          482-4388            3317Nigeria        482-4288            3317Norway         482-5149            3037Oman           482-1870            2039Pacific      Islands   482-3647            2308Pakistan       482-2954            2029BPanama         482-2527            3020Paraguay       482-1548            3021People's Rep     of China  482-3583            2317Peru           482-2521            2038Philippines    482-3875            2308Poland         482-2645            3413Portugal       482-4508            3044Puerto Rico    482-2527            3021Qatar          482-1070            2039Romania        482-2645            6043Rwanda         482-4388           3317Russia         482-2354            3318S�o Tom� &a;     Pr�ncipe  482-4338            3317Saudi Arabia   482-4652            2039Senegal        482-4388            3317Seychelles     482-4564            3317Sierra Leone   482-4388            3317Singapore      482-3875            2308Somalia        482-4564            3317South Africa   482-5498            3317Spain          482-4508            3045Sri Lanka      482-2954            2029BSt. Barthelemy 482-2527            3021St. Kitts-     Nevis     482-2527            3021St. Lucia      482-2527            3021St. Martin     482-2527            3021St. Vincent-     Grenadines 482-2527            3021Sudan          482-4564            3317Suriname       482-2527            3021Swaziland      482-5148            3317Sweden         482-4414            3037Switzerland    482-2920            3039Syria          482-4441            2039Taiwan         482-4957            2308Tajikistan     482-2354            3318Tanzania       482-4228            3317Thailand       482-3875            2308Togo           482-5149            3317Trinidad &      Tobago    482-2527            3021Tunisia        482-1860            2039Turkey         482-5373            3045Turks & Caicos      Islands   482-2527            3021Turkmenistan   482-2354            3318Uganda         482-4564            3317Ukraine        482-2354            3318United Arab      Emirates  482-5545            2039United Kingdom 482-3748            3045Uruguay        482-1495            3021Uzbekistan     482-2354            3318Venezuela      482-4303            3029Vietnam        482-3875            2308Virgin Islands      (UK)      482-2527            3021Virgin Islands      (US)      482-2527            3021Yemen, Rep. of 482-1870             2039Yugoslavia 482-2615             3413Zaire482-5149             3317Zambia 482-4228    3317Zimbabwe482-4228            3317

**TRADE DEVELOPMENT**
     Trade Development Industry Officers work with businesses andassociations to identify trade opportunities and obstacles byproduct or service, industry sector and market.  They developexport marketing plans and programs as well as conduct trademissions, trade fairs, marketing seminars and businesscounseling.            Trade Development          U.S. Department of Commerce, Room 3832           14th & Constitution Avenue, N.W.           Washington, D.C. 20230           Phone: 202/482-1461           FAX: 202/482-5697**TRADE DEVELOPMENT INDUSTRY UNITS**
**TECHNOLOGY AND AEROSPACE INDUSTRIES**U.S. Department of CommerceRoom 213014th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-1872FAX: 202/482-3383
**BASIC INDUSTRIES**U.S. Department of Commerce Room 404314th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-0614FAX: 202/482-5666
**SERVICE INDUSTRIES & FINANCE**U.S. Department of Commerce Room 1128A14th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-5261FAX: 202/482-4775
**TEXTILES, APPAREL & CONSUMER GOODS**U.S. Department of Commerce Room 310014th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-3737FAX: 202/482-2331
     In addition to the major industry sectors, cross-sectoralunits provide statistical data and analyses useful in exportdevelopment and coordinate Trade Development's overall exportpromotion efforts.
**OFFICE OF TRADE & ECONOMIC ANALYSIS**U.S. Department of CommerceRoom 281514th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-5145FAX: 202/482-5697
**OFFICE OF EXPORT PROMOTION COORDINATION**U.S. Department of CommerceRoom 200114th & Constitution Avenue, N.W.Washington, D.C. 20230Phone: 202/482-4501FAX: 202/482-5697

**ITA/US&FCS DISTRICT OFFICES**
     The US&FCS oversees 47 district offices and 21 branchoffices in cities throughout the United States.  ITA tradespecialists can provide export counseling, export programs andassistance through 51 District Export Councils nationwidecomprised of nearly 1,800 business and trade experts whovolunteer to help U.S. firms export.
**ALABAMA**U.S. Department of CommerceITA/US&FCS District Office 2015 Second Avenue, North, Room 302 Birmingham, AL 35203Phone: 205/731-1331FAX: 205/731-0076
**ALASKA**U.S. Department of CommerceITA/US&FCS District Office World Trade Center Alaska, Suite 3194201 Tudor Center DriveAnchorage, AK 99508-5916Phone: 907/271-6237FAX: 907/271-6242
**ARIZONA**U.S. Department of CommerceITA/US&FCS District Office 230 North First Avenue, Room 3412Phoenix, AZ 85025Phone: 602/379-3285FAX: 602/379-4324
**ARKANSAS**U.S. Department of CommerceITA/US&FCS District Office 425 West Capitol Avenue, Suite 700Little Rock, AR 72201Phone: 501/324-5794FAX: 501/324-7380
**CALIFORNIA**U.S. Department of CommerceITA/US&FCS District Office 11000 Wilshire Boulevard, Room 9200Los Angeles, CA 90024Phone: 310/575-7105FAX: 310/575-7220
U.S. Department of CommerceITA/US&FCS District Office 6363 Greenwich Drive, Suite 230San Diego, CA 92122Phone: 619/557-5395FAX: 619/557-6176

U.S. Department of CommerceITA/US&FCS District Office 250 Montgomery Street, 14th FloorSan Francisco, CA 94104Phone: 415/705-2310FAX: 415/705-2297
U.S. Department of CommerceITA/US&FCS District Office3330 Irvine Avenue, Suite 305Newport Beach, CA 92660-3198Phone: 714/660-1688FAX: 714/660-8039
**COLORADO**U.S. Department of CommerceITA/US&FCS District Office 1625 Broadway, Suite 680Denver, CO 80202Phone: 303/844-3246FAX: 303/844-5651
**CONNECTICUT**U.S. Department of Commerce ITA/US&FCS District Office 450 Main Street, Room 610 BHartford, CT 06103Phone: 203/240-3530FAX: 203/240-3473
**DELAWARE**(Delaware serviced by Philadelphia ITA office)U.S. Department of CommerceITA/US&FCS District Office 475 Allendale Road, Suite 202King of Prussia, PA 19406Phone: 215/951-4980FAX: 215/951-7959
**DISTRICT OF COLUMBIA**(D.C. serviced by Gaithersburg, MD ITA office)U.S. Department of CommerceITA/US&FCS District Office c/o National Institute of Standards and TechnologyRoom A102, Building 411Gaithersburg, MD 20899Phone: 301/975-3904FAX: 301/948-4360
**FLORIDA**U.S. Department of CommerceITA/US&FCS Branch Office 107 West Gaines Street, Room 366GTallahassee, FL 32399-2000Phone: 904/486-6469FAX: 904/487-1407
U.S. Department of CommerceITA/US&FCS District Office 224 Federal Building51 SW First AvenueMiami, FL 33130Phone: 305/536-5268FAX: 305/536-4765
U.S. Department of CommerceITA/US&FCS Branch Office 128 North Osceola AvenueClearwater, FL 34617Phone: 813/461-0011FAX: 813/449-2889
U.S. Department of CommerceITA/US&FCS Branch Office200 East Robinson Street, Suite 695Orlando, FL 32801Phone: 407/648-6235FAX:  407/648-6756
**GEORGIA**U.S. Department of CommerceITA/US&FCS District Office4360 Chamblee-Dunwoody RoadSuite 310 Atlanta, GA 30341Phone: 404/452-9101FAX: 404/452-9105
U.S. Department of CommerceITA/US&FCS District OfficeRoom A-107120 Bernard StreetSavannah, GA 31401Phone: 912/652-4204FAX: 912/652-4241
**HAWAII**U.S. Department of CommerceITA/US&FCS District Office 4106 Federal Building300 Ala Moana BoulevardHonolulu, HI 96850Phone: 808/541-1782FAX: 808/541-3435
**IDAHO**U.S. Department of CommerceITA/US&FCS District Office 700 West State Street, Second FloorBoise, ID 83720Phone: 208/334-3857FAX: 208/334-2787
**ILLINOIS**U.S. Department of CommerceITA/US&FCS District Office 55 East Monroe Street, Room 1406Chicago, IL 60603Phone: 312/353-4450FAX: 312/886-8025
U.S. Department of CommerceITA/US&FCS District Office Illinois Institute of Technology201 East Loop DriveWheaton, IL 60187Phone: 312/353-4332 FAX: 312/353-4336
U.S. Department of CommerceITA/US&FCS District Office 515 North Court StreetP.O. Box 1747Rockford, IL 61110-C247Phone: 815/987-8123FAX: 815/987-8122
**INDIANA**U.S. Department of CommerceITA/US&FCS District Office Penn Wood, Suite 10611405 North Penn StreetCarmel, IN 46032 Phone: 317/582-2300FAX: 317/582-2301
**IOWA**U.S. Department of CommerceITA/US&FCS District Office 210 Walnut Street, Suite 817Des Moines, IA 50309Phone: 515/284-4222FAX: 515/284-402
**KANSAS**U.S. Department of CommerceITA/US&FCS District Office 151 North VolutsiaWichita, KS 67214-4695Phone: 316/269-6160FAX: 316/683-7326
**KENTUCKY**U.S. Department of CommerceITA/US&FCS District Office 601 West Broadway, Room 636BLouisville, KY 40202Phone: 502/582-5066FAX: 502/582-6573
**LOUISIANA**U.S. Department of CommerceITA/US&FCS District Office Two Canal Street431 World Trade CenterNew Orleans, LA 70130Phone: 504/589-6546FAX: 504/586-2337
**MAINE**U.S. Department of CommerceITA/US&FCS District Office 77 Sewall StreetAugusta, ME 04330Phone: 207/622-8249FAX: 207/626-9156
**MARYLAND**U.S. Department of CommerceITA/US&FCS District Office 431 U.S. Customhouse40 South Gay Street Baltimore, MD 21202Phone: 410/962-3560FAX: 410/962-7813
U.S. Department of CommerceITA/US&FCS District Office c/o National Institute of Standards and TechnologyRoom A102, Building 411Gaithersburg, MD 20899Phone: 301/975-3904FAX: 301/948-4360
**MASSACHUSETTS**U.S. Department of CommerceITA/US&FCS District Office 307 World Trade CenterBoston, MA 02210Phone: 617/565-8563FAX: 617/565-8530
**MICHIGAN**U.S. Department of CommerceITA/US&FCS District Office 1140 McNamara Building477 Michigan AvenueDetroit, MI 48226Phone: 313/226-3650FAX: 313/226-3657
U.S. Department of CommerceITA/US&FCS District Office 300 Monroe N.W.Grand Rapids, MI 49503Phone: 616/456-2411FAX: 616/456-2695
**MINNESOTA**U.S. Department of CommerceITA/US&FCS District Office 110 South Fourth Street, Suite 108Minneapolis, MN 55401Phone: 612/348-1638FAX: 612/348-1650
**MISSISSIPPI**U.S. Department of CommerceITA/US&FCS District Office 201 W. Capitol Street, Suite 310Jackson, MS 39201-2005Phone: 601/965-4388FAX: 601/965-5386
**MISSOURI**U.S. Department of CommerceITA/US&FCS District Office 8182 Maryland Avenue, Suite 303St. Louis, MO 63105Phone: 314/425-3305FAX: 314/425-3381
U.S. Department of CommerceITA/US&FCS District Office 601 East 12th Street, Room 635Kansas City, MO 64106Phone: 816/426-3141FAX: 816/426-3140
**MONTANA**(Montana served by the Portland ITA Office)U.S. Department of CommerceITA/US&FCS District Office One World Trade Center, Suite 242121 SW Salmon StreetPortland, OR 97204Phone: 503/326-3001FAX: 503/326-6351
**NEBRASKA**U.S. Department of CommerceITA/US&FCS District Office 11133 O StreetOmaha, NE 68137Phone: 402/221-3664FAX: 402/221-3668
**NEVADA**U.S. Department of CommerceITA/US&FCS District Office 1755 East Plumb Lane, #152Reno, NV 89502Phone: 702/784-5203FAX: 702/784-5343
**NEW HAMPSHIRE**(N.H. serviced by the Boston ITA Office)U.S. Department of CommerceITA/US&FCS District Office 307 World Trade CenterBoston, MA 02210Phone: 617/565-8563FAX: 617/565-8530
**NEW JERSEY**U.S. Department of CommerceITA/US&FCS District Office 3131 Princeton PikeBuilding #6, Suite 100Trenton, NJ 08648Phone: 609/989-2100FAX: 609/989-2395
**NEW MEXICO**U.S. Department of CommerceITA/US&FCS District Office 625 Silver Avenue SW, Third FloorAlbuquerque, NM 87102Phone: 505/766-2070FAX: 505/766-1057
**NEW YORK**U.S. Department of CommerceITA/US&FCS District Office 26 Federal Plaza, Room 3718New York, NY 10278Phone: 212/264-0634FAX: 212/264-1356
U.S. Department of CommerceITA/US&FCS District Office 111 West Huron Street, Suite 1312Buffalo, NY 14202Phone: 716/846-4191FAX: 716/846-5290
U.S. Department of CommerceITA/US&FCS District Office 111 East Avenue, Suite 220Rochester, NY 14604Phone: 716/263-6480FAX: 716/325-6505
**NORTH CAROLINA**U.S. Department of CommerceITA/US&FCS District Office 400 West Market Street Greensboro, NC 27401Phone: 919/333-5345FAX: 919/333-5158
**OHIO**U.S. Department of CommerceITA/US&FCS District Office 9504 Federal Building550 Main StreetCincinnati, OH 45202Phone: 513/684-2944FAX: 513/684-3200
U.S. Department of CommerceITA/US&FCS District Office668 Euclid Avenue, Room 600Cleveland, OH 44114Phone: 216/522-4750FAX: 216/522-2235
**OKLAHOMA**U.S. Department of CommerceITA/US&FCS District Office 6601 Broadway ExtensionOklahoma City, OK 73116Phone: 405/231-5302FAX: 405/841-5245
U.S. Department of CommerceITA/US&FCS District Office 440 South Houston Street, Room 505Tulsa, OK  74127Phone: 918/581-765OFAX: 918/581-2844
**OREGON**U.S. Department of CommerceITA/US&FCS District Office One World Trade Center, Suite 242121 SW Salmon StreetPortland, OR 97204Phone: 503/326-3001FAX: 503/326-6351
**PENNSYLVANIA**U.S. Department of CommerceITA/US&FCS District Office 475 Allendale Road, Suite 202King of Prussia, PA 19406Phone: 215/962-4980FAX: 215/951-7959
U.S. Department of CommerceITA/US&FCS District Office 1000 Liberty Avenue, Suite 2002Pittsburgh, PA 15222-4194Phone: 412/644-2850FAX: 412/644-4875
**PUERTO RICO**U.S. Department of CommerceITA/US&FCS District OfficeRoom G-55, Federal Building(Hato Rey) San Juan, PR 00918Phone: 809/766-5555FAX: 809/766-5692
**RHODE ISLAND**U.S. Department of CommerceITA/US&FCS District Office 7 Jackson WalkwayProvidence, RI 02903Phone: 401/528-5104FAX:  401/528-5067
**SOUTH CAROLINA**U.S. Department of CommerceITA/US&FCS District Office 1835 Assembly Street, Suite 172Columbia, SC 29201Phone: 803/765-5345FAX: 803/253-3614
U.S. Department of CommerceITA/US&FCS District Office 9 Liberty Street, Room 128Charleston, SC 29424Phone: 803/765-5345FAX: 803/253-3614
**SOUTH DAKOTA**(S.D. serviced by the Omaha District Office)U.S. Department of CommerceITA/US&FCS District Office 11133 O StreetOmaha, NE 68137Phone: 402/221-3664FAX: 402/221-3668
**TENNESSEE**U.S. Department of CommerceITA/US&FCS District Office 404 Jason Robertson Parkway, Suite 1114Nashville, TN 37219Phone: 615/736-5161FAX: 615/736-2454
U.S. Department of CommerceITA/US&FCS District Office 22 North Front Street, Suite 200Memphis, TN 38103Phone: 901/544-4137FAX: 901/575-3510
U.S. Department of CommerceITA/US&FCS District Office 301 East Church AvenueKnoxville, TN 37915Phone: 615/545-4637
**TEXAS**U.S. Department of CommerceITA/US&FCS District Office P.O. Box 12728, Capitol StationAustin, TX 78711Phone: 512/472-5059FAX: 512/320-9424
U.S. Department of CommerceITA/US&FCS District Office 1100 Commerce Street, Room 7A5Dallas, TX 75258Phone: 214/767-0542FAX: 214/767-8240 
U.S. Department of CommerceITA/US&FCS District Office 2625 Federal Building515 Rusk StreetHouston, TX 77002Phone: 713/229-2578FAX: 713/229-2203
**UTAH**U.S. Department of CommerceITA/US&FCS District Office 324 South State Street, Suite 105Salt Lake City, UT 84111Phone: 801/524-5116FAX: 801/524-5886
**VERMONT**(Vermont served by the Boston ITA Office)U.S. Department of CommerceITA/US&FCS District Office 307 World Trade CenterBoston, MA 02210Phone: 617/565-8563FAX: 617/565-8530
**VIRGINIA**U.S. Department of CommerceITA/US&FCS District Office 400 North Eighth Street, Suite 8010Richmond, VA 23240Phone: 804/771-2246FAX: 804/771-2390
**WASHINGTON**U.S. Department of CommerceITA/US&FCS District Office 3131 Elliott Avenue, Suite 290Seattle, WA 98121Phone: 206/553-5615FAX: 206/553-7253
**WEST VIRGINIA**U.S. Department of CommerceITA/US&FCS District Office 405 Capitol Street, Suite 807Charleston, WV 25301Phone: 304/347-5123FAX: 304/347-5408
**WISCONSIN**U.S. Department of CommerceITA/US&FCS District Office 517 East Wisconsin Avenue, Room 596Milwaukee, WI 53202Phone: 414/297-3473FAX: 414/297-3470
**WYOMING**(Wyoming serviced by the Denver ITA Office)U.S. Department of CommerceITA/US&FCS District Office1625 Broadway, Suite 680Denver, CO 80202 Phone: 303/844-3246FAX: 303/844-5651 
**BUREAU OF EXPORT ADMINISTRATION (BXA)**
     The BXA counsels U.S. firms attempting to export controlledproducts, issues export licenses and holds seminars on exportregulations.
          U.S. Department of Commerce          Bureau of Export Administration            Office of Export Licensing            Room 1099, HCH Building            14th & Constitution Avenue, N.W.            Washington, D.C. 20230            Phone: 202/482-8536            FAX: 202/482-3322       BXA services include:

Export License Application and Information Network (ELAIN)Phone: 202/482-4811
System for Tracking Export License Application (STELA)Phone: 202/482-2752
Export Licensing Voice Information System (ELVIS)Phone: 202/482-4811
Export SeminarsPhone: 202/482-6031                                
**NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY**
     Provides information about foreign standards andcertification requirements.  Maintains a GATT Hotline whichreports on the latest technical notifications of proposed foreignregulations that may affect trade.
          U.S. Department of Commerce          Technology Administration            NIST            Physics Building, Room A363            Gaithersburg, MD 20899            Phone: 301/975-4040              FAX: 301/963-2871            GATT Hotline: 301/975-4041
Section 2
**SMALL BUSINESS DEVELOPMENT CENTERS**
**INTERNATIONAL TRADE PROGRAMS**
**SBDC INTERNATIONAL TRADE PROGRAMS**
     Small Business Development Centers (SBDCs) provide a widerange of business assistance including export counseling.  Thereare over 900 SBDCs throughout the United States.  Some SBDCs havedesignated International Trade Centers; all SBDCs provide tradecounseling/referral.
**SEPARATE SBDC INTERNATIONAL TRADE CENTERS**
**ALABAMA**University of Alabama in Birmingham1717 Eleventh Avenue South, Suite 419Birmingham, AL 35294-4410Phone: 205/934-7260FAX: 205/934-7645
Alabama International Trade CenterUniversity of Alabama400 North Martha ParhamTuscaloosa, AL 35487-0396Phone: 205/348-7621FAX: 205/348-6974
**CALIFORNIA**California Department of Commerce801 K Street, Suite 1700Sacramento, CA 95814Phone: 916/324-5068FAX: 916/322-5084
Export Small Business Development Center of Southern California110 East Ninth Street, Suite A-761Los Angeles, CA 90079Phone: 213/892-1111FAX: 213/892-8232
**FLORIDA**Trade Expansion CenterUniversity of West FloridaBuilding 79, Room 196Pensacola, FL 32514Phone: 904/474-3016FAX: 904/474-2030
Florida Atlantic UniversityP.O. Box 3091Boca Raton, FL 33431Phone: 407/367-2273/2271FAX: 407/367-2272
**GEORGIA**University of GeorgiaChicopee Complex1180 East Broad StreetAthens, GA 30602Phone: 706/542-5760FAX: 706/542-6776
**ILLINOIS**Illinois Department of Commerce and Community Affairs620 East Adams StreetSpringfield, IL 62701Phone: 217/524-5856FAX: 217/785-6328
College of Dupage22nd & Lambert RoadGlen Ellyn, IL 60137Phone: 708/858-2800, Ext. 3052FAX: 708/790-1179
Bradley University141 North Jobst Hall, First FloorPeoria, IL 61625Phone: 309/677-3075FAX: 309/677-3386
Small Business Development CenterSouthern Illinois University, EdwardsvilleCampus Box 1107Edwardsville, IL 62026Phone: 618/692-2929FAX: 618/692-2647
**LOUISIANA**Northeast Louisiana UniversityCollege of Business Administration700 University AvenueMonroe, LA 71209Phone: 318/342-5506FAX: 318/342-5510
University of New Orleans368 Business Administration Bldg.New Orleans, LA 70148Phone: 504/286-6978FAX: 504/286-7197
**MICHIGAN**Wayne State University2727 Second AvenueDetroit, MI 48201Phone: 313/577-4848FAX: 313/577-4222
Center for International Business DevelopmentMichigan State University6 Kellogg CenterEast Lansing, MI 48824-1022Phone: 517/353-4336 or 1-800-852-5727FAX: 517/336-1009
**MISSISSIPPI**University of MississippiOld Chemistry Building, Suite 216University, MS 38677Phone: 601/232-5001FAX: 601/232-5650
International Trade CenterHinds Community CollegeP.O. Box 1170Raymond, MS 39154Phone: 601/857-3536FAX: 601/857-3535
**OREGON**Lane Community College99 West 10th Avenue, Suite 216Eugene, OR 97401Phone: 503/726-2250FAX: 503/345-6006 
Portland Community College SBDC121 SW Salmon Street, Suite 210Portland, OR 97204Phone: 503/274-7482FAX: 503/228-6350
**PENNSYLVANIA**University of PennsylvaniaThe Wharton School444 Vance HallPhiladelphia, PA 19104Phone: 215/898-1219FAX: 215/573-2135
Wharton Export Network3733 Spruce Street, Suite 413Philadelphia, PA 19104Phone: 215/898-4861FAX: 215/898-1299
Lehigh Small Business Development CenterThe Rauzh Business Center, No. 37Bethlehem, PA 18015Phone: 215/758-3980FAX: 215/758-5205
Kutztown UniversitySmall Business Development Center2986 North Second StreetHarrisburg, PA 17110Phone: 717/233-3120FAX: 717/233-3181
**TENNESSEE**Small Business Development CenterMemphis State UniversityMemphis, TN 38152Phone: 901/678-2500FAX: 901/678-4072
**TEXAS**North Texas Small Business Development CenterDallas Community College1402 Corinth Dallas, TX 75215Phone: 214/565-5833FAX: 214/565-5813
Small Business Development CenterP.O. Box 582992050 Stemmons FreewayWorld Trade Center, Suite 150Dallas, TX 75258Phone: 214/747-1300, Code 68FAX: 214/748-5774
University of Houston Small Business Development Center601 Jefferson Street, Suite 2330Houston, TX 77002Phone: 713/752-8404FAX: 713/752-8484
South Texas BorderSmall Business Development CenterUniversity of Texas at San Antonio801 South BowieSan Antonio, TX 78205Phone: 512/224-0794FAX: 512/222-9834
**WASHINGTON**Washington State UniversityCollege of Business and Economics245 Todd HallPullman, WA 99164-4727Phone: 509/335-1576FAX: 509/335-0949
International Trade InstituteNorth Seattle Community College9600 College Way NorthSeattle, WA 98103Phone: 206/527-3732FAX: 206/527-3734
            OTHER SBDCs ACTIVE IN INTERNATIONAL TRADE
**ARIZONA**Arizona Lead Small Business Development Center2411 West 14th StreetTempe, AZ 85281Phone: 602/731-8720FAX: 602/731-8729
**COLORADO**Colorado Office of Business Development1625 Broadway, Suite 1710Denver, CO 80202Phone: 303/892-3809FAX: 303/892-3848
Front Range Community CollegeSmall Business Development Center3645 West 112th AvenueWestminster, CO 80030Phone: 303/460-1032FAX: 303/466-1623
**IDAHO**Boise State UniversityCollege of Business1910 University DriveBoise, ID 83725Phone: 208/385-1640FAX: 208/385-3877
International Trade CoordinatorLewis Clark State College500 Eighth AvenueLewiston, ID 83501Phone: 208/799-2465FAX: 208/799-2831
**INDIANA**Indiana Economic Development CouncilOne North Capital, Suite 420Indianapolis, IN 46204-2248Phone: 317/264-6871FAX: 317/264-3102
**IOWA**Iowa State University137 Lynn AvenueAmes, IA 50010Phone: 515/292-6351FAX: 515/292-0020
Northeast Iowa Small Business Development CenterDubuque Area Chamber of Commerce770 Town Clock PlazaDubuque, IA 52001Phone: 319/588-3350FAX: 319/557-1591
Eastern Iowa Small Business Development Center304 West Second AvenueDavenport, IA 52801Phone: 319/322-4499FAX: 319/322-3956
**MASSACHUSETTS**University of MassachusettsSchool of Management, Room 205Amherst, MA 01003Phone: 413/545-6301FAX: 413/545-1273
**MISSOURI**University of Missouri, Columbia300 University PlaceColumbia, MO 65211Phone: 314/882-0344FAX: 314/884-4297
Central Missouri State University Small Business Development CenterGrinstead 75Warrensburg, MO 64093-5087Phone: 816/543-4402FAX: 816/543-8159
Missouri Southern State College Small Business Development Center107 Matthews Hall3950 Newman RoadJoplin, MO 64801Phone: 417/625-9313FAX: 417/625-9782
Southwest Missouri State UniversitySmall Business Development Center901 South NationalBox 88Springfield, MO 65804Phone: 417/836-5685FAX: 417/836-6337
**MONTANA**Montana Department of Commerce **SBDC**1424 Ninth AvenueHelena, MT 59620Phone: 406/444-4780FAX: 406/444-2808
**NEBRASKA**University of Nebraska, Omaha60th & Dodge Streets, CBA Room 407Omaha, NE 68182Phone: 402/554-2521FAX: 402/554-2747
University of Nebraska, Omaha1313 Farnam, Room 132Omaha, NE 68182Phone: 402/595-2381FAX: 402/595-2388
**NEVADA**University of Nevada SBDCMail Stop 032Reno, NV 89557-0100Phone: 702/784-1717FAX: 702/784-4337
**NEW HAMPSHIRE**University of New Hampshire108 McConnell HallDurham, NH 03824Phone: 603/862-2200FAX: 603/862-4468
International Resource Center601 Spaulding Turnpike, Suite 29Portsmouth, NH 03801-2833Phone: 603/334-6074FAX: 603/334-6110
**NEW JERSEY**Rutgers UniversityAckerson Hall, Third Floor180 University AvenueNewark, NJ 07102Phone: 201/648-5950FAX: 201/648-1110
**NEW YORK**State University of New YorkSUNY Plaza, S-523Albany, NY 12246Phone: 518/443-5398FAX: 518/465-4992
International Trade CoordinatorSmall Business Development CenterState University College, Buffalo1300 Elmwood AvenueBuffalo, NY 14222Phone: 716/878-4030FAX: 716/878-4067
Small Business Development CenterRockland Community College at Suffern145 College RoadSuffern, NY 10901Phone: 914/356-0370FAX: 914/356-0381
**NORTH CAROLINA**University of North Carolina4509 Creedmoor Road, Suite 201Raleigh, NC 27612Phone: 919/571-4154FAX: 919/571-4161
**OHIO**Ohio Department of Development77 South High StreetColumbus, OH 43266-1001Phone: 614/466-2711FAX: 614/466-0829
Southeast Ohio Small Business Development CenterOhio University at AthensInnovation CenterOne President Street, Suite 014Athens, OH 45701Phone: 614/593-1797FAX: 614/593-1795
Toledo Small Business Development Center218 North Huron StreetToledo, OH 43604Phone: 419/243-8191FAX: 419/241-8302
Lake County Small Business Development CenterLake County Economic Development CenterLakeland Community CollegeMentor, OH 44080Phone: 216/951-1290FAX: 216/953-4413
Marietta College SBDCMarietta CollegeMarietta, OH 45750Phone: 614/374-4649FAX: 614/374-7585
**RHODE ISLAND**Bryant College1150 Douglas PikeSmithfield, RI 02917Phone: 401/232-6111FAX: 401/232-6416
**SOUTH CAROLINA**University of South CarolinaCollege of Business Administration1710 College StreetColumbia, SC 29208Phone: 803/777-4907FAX: 803/777-4403
**VIRGINIA**Virginia Department of Economic DevelopmentP.O. Box 798Richmond, VA 23206-0798Phone: 804/371-8253FAX: 804/371-8185
Northern VirginiaSmall Business Development Center4260 Chainbridge Road, Suite B-1Fairfax, VA 22030Phone: 703/993-2131FAX: 703/993-2126
Longwood Small Business Development CenterLongwood College515 Main StreetFarmville, VA 23901Phone: 804/395-2086FAX: 804/395-2359
James Madison University Small Business Development CenterCollege of BusinessZane Showker Hall, Room 523Harrisonburg, VA 22807Phone: 703/568-3227FAX: 703/568-3299
Small Business Development Center of Hampton Roads420 Bank Street, P.O. Box 327Norfolk, VA 23501Phone: 804/622-6414 or 804/825-2957FAX: 804/622-5563 or 804/825-2960 
**WASHINGTON, D.C.**Howard University Small Business Development Center2600 Sixth Street, N.W.Room 128Washington, D.C. 20059Phone: 202/806-1550FAX: 202/806-1777U.S. DEPARTMENT OF STATE
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