The Foreign Service Journal, January 2003

the set-up and tech support. All the U.S. businessperson has to do is show up and present the product. We also give U.S. companies the option of participating in virtual trade missions, which for some companies are an easier and less expensive way to investigate an interesting market than a tradition- al trade mission. And, as with tradi- tional missions, there are advan- tages to working in a group. U.S. companies can network with and learn from other delegates, who generally are not competitors. One virtual trade mission introduced seven U.S. fran- chisers to more than 40 companies in India that were interested in purchasing master franchises. Commercial Service offices in Atlanta, New York, Louisville, Dallas, San Francisco and Little Rock hosted the U.S. companies and linked via videoconference to the audience of Indian franchisees in Mumbai. The U.S. and Indian companies could display products, ask questions, and get to know each other; deals were closed later, either offline or in person. The vast majority of U.S. exporters are small or medium- size businesses. Exporting makes good business sense for these companies — having cus- tomers around the world can insulate a company against mar- ket turbulence and seasonal fluctuation. These advantages often translate to higher rates of growth, increased profitability, and overall health- ier businesses. This is an excellent time for U.S. businesses to find new customers overseas. We at the U.S. Commercial Service are working harder than ever to help them do it. F O C U S 38 F O R E I G N S E R V I C E J O U R N A L / J A N U A R Y 2 0 0 3 To China & Beyond Building Export Dreams with the Commercial Service M aureen Russell got into the building materials business in 1975, when she went to work for a local materials distributor. But her greatest challenge came 10 years ago when she bought the R. M. Waite Company, a small roofing and building materials dis- tributor based in Oakland, Calif. Most of the company’s international sales went to Asia, and the financial crisis saw export mar- kets deflate and overseas sales slow. That’s when Russell turned to the government for help diversifying and strengthening her export markets. Her first stop was the Center for International Trade Development, an initiative of ED>Net, the California Community College Economic Development Network. There, Director Richard Soyombo introduced her to the U.S. Commercial Service, a Department of Commerce unit that provides global business solutions to U.S. companies. With offices in more than 100 locations across the country, CS works closely with other local, state and federal trade assistance agencies. Russell entered an international business training program led by International Trade Specialist Stephen Johnson of CS San Francisco and assisted by Soyombo of CITD. Part of CS’s Global Diversity Initiative, the six-month training program is held in business centers throughout the U.S. and covers the logistics of international trade: distribution channels, finance, transportation, e-commerce, and documentation. As an experienced exporter, Russell didn’t know what she’d get out of the program. But she was surprised by how much there was to learn. Soon she was experimenting with new methods and sources of financing, like those of CS partner Export- Import Bank. With these new tools in hand, Russell turned to new markets. Working with International Trade Specialist George Tastard, also of CS San Francisco, Russell began to explore a market many small-business owners find daunting: China. One of the first things Russell learned about doing business there was the importance of relationships. She built contacts with Chinese buyers, and continued to work closely with her network of CS export specialists. George Tastard introduced Russell to commercial officers in Beijing, who provided their unique brand of on-the-ground know-how to speed the company into the market. And when Russell’s Chinese customers had dif- ficulty getting visas to visit the U.S., Tastard put Russell in touch with Congresswoman Barbara Lee, D-Calif., to sort out the issue. Now, 80 percent of R. M. Waite’s exports go to Asia, generating approximately $2 million this year. Neither DSL lines nor videoconferencing equipment can replace face-to-face conversation. But technology can help make exporting faster and easier for small U.S. businesses.