Chapter 1

Obtaining Information

Before expanding into the global marketplace, business executives should learn as much as possible about the opportunities and obstacles they are most likely to encounter. To successfully penetrate lucrative markets, targeted research is essential. While a quick Internet search may be useful in guiding the initial research process, executives are often unaware of the numerous publications and services offered by both the government and other sources that are indispensable in conducting market-specific research. The effective use of these resources can help businesses not only avoid costly mistakes but also lead to the discovery of new opportunities. Most of these publications, including newsletters, publications, and even magazines, are available online either free of charge or at a minimal cost. Additionally, many of the organizations and services provide detailed information through their websites.

Consider the case that you are the owner of a U.S. small business producing and selling organic shampoo domestically with headquarters in Bridgewater, New Jersey. At a trade show, a Japanese businessperson samples your shampoo, and places an order for $50,000 worth of shampoo. Suddenly, your sales team is receiving calls from all around the world, specifically in Asia and Europe. While your exposure to these markets is limited, you do know that Asian and European markets differ substantially from not only the U.S. market but also each other. As such, you will need to educate yourself on the intricacies of conducting business in each marketplace, as well as obtain targeted market research.

After reviewing your copy of Inside Washington, you immediately contact your local U.S. Commercial Service representative in New Jersey, who advises you to review the Country Commercial Guides for each of the countries you are entering. In addition, the Commercial Service taps into its network of partners, including the Small Business Administration (SBA) and the state of New Jersey to provide customized market research, information on financing, and other programs available to your company. Within a few years’ time, you have established your own network of local partners, familiarized yourself with each unique culture, and have begun exporting to more than 12 countries, growing your business by just over 20%.

This chapter details both the sources of critical information and the many services available to businesses seeking to thrive in the global marketplace. It outlines the publications, databases, organizations, and services available to assist businesses in obtaining information. The following is a brief list of the key topics described in this chapter:

Publications

Department of Commerce (DOC)

Basic Guide to Exporting

This guide outlines the series of steps involved in exporting and provides practical information and sources of government assistance to exporters. It covers topics from identifying markets and developing an export strategy to conducting market research, traveling overseas, finding buyers, shipping, and financing. The 10th edition of this guide is now available for $19.95 from the U.S. Government Bookstore.

Export Programs Guide: A Business Guide to Federal Export Assistance

This publication, published in 2009 by the International Trade Administration (ITA), details more than 100 export programs offered by 20 different federal agencies. Programs include export counseling, information on various trade promotion events, export financing, sources of industry- and country-specific information and assistance, as well as information on exports controls and licenses. The 2009 Guide is available for free on the ITA website and is listed under publications.

Country Commercial Guides

This series is prepared annually by U.S. embassies located throughout the world and several other U.S. government agencies. Country Commercial Guides provide helpful background data for evaluating export markets. Each guide discusses marketing factors in individual countries; presents economic and political profiles of countries and regions; issues semiannual outlooks for U.S. trade; analyzes each country’s investment climate; and publishes selected statistical reports on the direction, volume, and nature of U.S. foreign trade. A complete listing of available guides by country can be found on several agencies’ websites, but the most convenient is through the U.S. Commercial Service as listed in the following. These guides can also be ordered in hard copy.

United Nations (UN)

International Trade Statistics Yearbook

This yearbook is a publication of the United Nations and is useful for analyzing trade by country or commodity, performing trend analysis and projections, and developing marketing strategies. It represents the basic information on an individual country’s external trade performance by current value, volume, and price. It also highlights the importance of trading partners and the significance of imported and exported commodities. Statistical information on approximately 170 countries is available and costs $92 for a PDF copy and $115 for a print copy.

Global Trends in Sustainable Energy Investment

This UN environmental program report focuses on the global trends in sustainable energy development, covering both the renewable energy and energy efficiency sectors. It provides an analysis of trends and issues in the financing of renewable energy and energy efficiency. A print copy is available for $35; however, the PDF version is available on their website.

U.S. Department of Agriculture (USDA)

Foreign Agricultural Service (FAS) Publications

FAS was created to support and expand U.S. agricultural exports. Through FAS online, agricultural exporters obtain in-depth and up-to-date statistics on agricultural commodities, including reports on export sales, global supply and demand numbers, trade trends, and emerging market opportunities. FAS online provides detailed country background information through Market Specific Reports and Attaché Reports. This site also offers assistance to agricultural exporters through embassy contacts and other sources of exporting information.

Department of State

Guide to Doing Business With the Department of State

This publication assists small, minority, or female-owned businesses competing with other companies doing business with the U.S. Department of State. The guide summarizes procurement programs and opportunities available to disadvantaged groups. It includes descriptions and contact information for major categories of products and services, as well as a list of subcontracting opportunities. Furthermore, it lists federal offices that supply guidance on procurement procedures, and contacts for trade- and investment-related issues. It is available online at the web address in the following.

World Bank

Global Development Finance

The World Bank’s authoritative annual review of developing countries’ external debt and financial flows is an indispensable reference guide for economists, bankers, country risk analysts, financial consultants, and others involved in capital projects worldwide. This publication is available for free through World Bank’s data catalog at the address shown in the following. Alternatively, a print version is available for $75 (geographic discounts are available) and CD-ROM versions are priced at $50 for single users.

Doing Business

Launched in 2002 by the International Finance Corporation (IFC), the Doing Business project provides detailed and objective measures of business regulations for local domestic small- and medium-sized enterprises (SMEs) in 183 economies and selected cities at the subnational level. The project compares business regulation environments in a multitude of economies and over time, and was created with the hope of pushing countries to compete toward a more efficient regulation. Doing Business is a useful resource for academics, journalists, private sector researchers, and others interested in understanding the various business climates throughout the world. PDF copies are publicly available at no cost at the web address listed in the following.

World Bank Bookstore

This bookstore offers many of the newest and most popular World Bank titles, catalogs, and brochures. Offerings cover topics such as project finance, globalization, emerging markets, development issues, and more. Complimentary copies of World Bank, IFC, and MIGA Annual Reports, as well as a comprehensive listing of publications, may be found here.

World Development Indicators

World Development Indicators is a publication that includes more than 80 data tables and 800 indicators for single-year observations. It has become an invaluable source to those who analyze business opportunities in developing countries and emerging markets. Sections include World View, People, Environment, Economy, States and Markets, and Global Links. Print versions are available for $75, and CD-ROMs are available for $50. In addition, access to the database-format of the World Development Indicators is available at the address listed in the following.

Other

CIA World Factbook

This annual publication, produced by the Central Intelligence Agency (CIA), includes accurate, up-to-date information on countries and geographic areas of the world. This includes maps for each entry and color maps of major regions. Entries for each country cover geography, demography, governments, economic factors, information on communication issues such as telephone and Internet penetration, and transportation, to name a few. The most recent editions are available free online at the following web address or may be purchased in hard copy using the following contact information.

Amber Waves

This publication from the Economic Research Service offers a window into the broad range of its research and analysis. Published four times a year, Amber Waves covers the economics of food, farming, natural resources, and rural America. The most up-to-date version of Amber Waves is available for free online; however, print editions are also available for purchase for $49.95 per year.

Databases

U.S. Department of Agriculture (USDA)

Foreign Agricultural Trade of the United States (FATUS)

Foreign Agricultural Trade of the United States is a database of U.S. agricultural exports and imports, by commodity, with all countries and regions of the world. FATUS is a standard aggregation of the original U.S. trade data found in the Harmonized Tariff Schedule (HTS) of the United States. FATUS consists of 213 agricultural groups created by USDA for the purpose of summarizing U.S. agricultural trade in a form most usable by the public.

Global Agriculture Information Network (GAIN)

USDA’s GAIN is a web-based system that allows users to search for timely information on the agricultural economy, products, and issues that are likely to have an effect on U.S. agricultural production and trade. With information from 1995 to the present, the database allows search reports by date range, country, commodity, or key word in the title. The information held in the database is submitted by Foreign Service officers working at posts overseas that collect and submit information on the agricultural situation in more than 130 countries to USDA’s Foreign Agricultural Service. To access GAIN, please visit the site listed in the following.

Other

Emerging Markets Database (EMDB)

This database, provided by Standard & Poor’s, covers 55 markets and more than 2,200 stocks. EMDB has collected information since 1975, when it was the first database to track emerging market stocks, and draws a sample of stocks in each EMDB market to calculate indices designed to serve as benchmarks that are consistent across national boundaries. The database also provides extensive statistics on emerging equity markets and incorporates information on performance, valuations, and country and regional index movements. The database has gained recognition as the world’s primary source for reliable and comprehensive information and statistics on stock markets in developing countries. Pricing for this service is based on the scope of usage required.

GeoNetwork

The GeoNetwork includes interactive maps, GIS datasets, satellite imagery, and related applications of cartographic features of the world including roads and other infrastructure, ports and airports, landcover, climate, fisheries, and more. The purpose of the database is to improve access to spatial data and information to be used in key decision making. The database can be accessed at the web address listed in the following.

Organizations and Services

Department of Energy (DOE)

Energy Information Administration (EIA)

Created in 1977 by the U.S. Congress, EIA is the department responsible for gathering and maintaining information, statistics, forecasts, and other data related to the issues surrounding worldwide energy policies and trends. Services include a listing of publications, statistics for businesses, guides to energy resources, and key contacts. Most of the information is free of charge and available online.

Office of Policy and International Affairs

This office within the DOE is charged with providing accurate and unbiased information to the Department of Energy as it relates to international energy policies including emergency management, national security, and science and technology. The office provides reports on energy activity, links to other valuable websites, and a library of articles and publications.

International Finance Corporation (IFC)

Financial Institutions: Resources, Solutions and Tools (FIRST) for Sustainability

Supported by the governments of Finland and Sweden, this one-stop shop allows financial institutions to obtain information and learn about the various benefits of environmental and social risk management. In addition, FIRST provides information on identifying and taking advantage of environmental business opportunities with traditional financial and investment products.

FIRST provides guidance to financial institutions on how to implement an Environmental and Social Management System (ESMS), conduct environmental and social due diligence, as well as how to create a pipeline of new business and develop product offerings tailored to the environmental needs of clients.

Overseas Private Investment Corporation (OPIC)

InfoLine

OPIC is an independent government agency that encourages American private businesses to invest in developing countries, newly emerging democracies, and free market economies. Through OPIC’s InfoLine, callers can request information on programs, special reports, registration, application forms, and other publications.

Small Business Administration (SBA)

SBA Online

The SBA offers exporters access to application information, services, and other export assistance information. SBA Direct service gives access to SBA’s programs and data resources, including research data banks, news groups, tips on exporting, accessing financing, and other program information.

Service Corps of Retired Executives (SCORE)

For small companies seeking to enter export markets, SCORE provides one-on-one counseling and training seminars by individuals who have had years of practical experience in international trade. Volunteers assist small firms in evaluating export potential and in strengthening domestic operations by identifying financial, managerial, or technical problems. Each SCORE office offers a series of presentations, including online and live workshops on international business, for the local business community.

Trade Mission OnLine

Trade Mission OnLine is an SBA-provided, searchable database that houses an extensive list of small U.S. businesses seeking opportunities to export their products or services. U.S. firms can also use the database to identify U.S. business partners or domestic suppliers as needed to begin, revise, or expand a small business’s export operations.

United Nations (UN)

INFOTERRA

INFOTERRA is the global environmental information exchange network of the United Nations Environment Program. The network operates through a system of government-designated national focal points, totaling 177, that are essentially national environmental information centers located in the ministry or agency responsible for environmental protection. The primary function of each center is to provide a national environmental information service, which is then compiled in INFOTERRA.

U.S. Department of Agriculture (USDA)

Economic Research Service (ERS)

This service of USDA provides economic data, models, and research information about the agricultural economies and policies of foreign countries. ERS’s program encompasses research, analyses of food and commodity markets, policy studies, and development of economic and statistical indicators. The information and analyses are produced for private sector decision making and to help the executive and legislative branches of the government develop, administer, and evaluate farm, food, rural, and resource policies and programs.

Department of Commerce (DOC)

U.S. Commercial Service

The U.S. Commercial Service is the trade promotion arm of the DOC’s International Trade Administration (ITA). U.S. Commercial Service trade professionals in over 100 U.S. cities and help U.S. companies in more than 75 countries get started in exporting or increase sales to new global markets. For a list of contact information for the DOC office in your state or region, please refer to appendix B.

International Company Profile

This service provides U.S. companies with information on foreign businesses through investigating the financial strength of companies in more than 80 countries and gauging information such as organization type, year established, relative size, number of employees, general reputation, territory covered, product lines handled, principal owners, and financial and trade references from a number of local sources. Each report also contains a general comment on the firm’s reliability as assessed by the U.S. Commercial Officer who conducted the investigation. Profiles are not available in countries where posts feel that adequate commercial and financial reporting is available at a reasonable cost through the private sector. Requests usually take 15 days, with costs contingent on company size. Companies with 500 or fewer employees can qualify as a small- or medium-sized enterprise (SME) and pay $600 per report, or $350 per report if it is an SME’s first time using the service. Companies with more than 500 employees pay $900 per report.

Market Access and Compliance (MAC) Officers

Officers from ITA work to open foreign markets for U.S. goods and services by focusing on current market issues as well as developing strategies to overcome obstacles faced by U.S. businesses. MAC officers work closely with U.S. businesses, trade associations, and other government agencies to develop information related to trade negotiations, foreign country compliance, and trade agreements in order to support the international ventures of U.S. companies.

Minority Business Development Agency (MBDA)

MBDA provides management and technical assistance, as well as access to domestic and international markets. MBDA’s mission is to promote the establishment and growth of minority-owned business enterprises in the United States. Consequently, it is constantly seeking to create new and innovative ways to engage U.S. minority firms in the international business arena. MBDA assists minority firms in gaining international access in many ways, including trade missions, matchmaker programs, one-on-one client counseling, seminars, and special international program events.

National Marine Fisheries Service (NMFS)

The NMFS is a division of the DOC and is affiliated with the National Oceanic and Atmospheric Administration (NOAA). The NMFS administers programs sponsored by NOAA that support domestic and international conservation and management of living marine resources. It offers a wide range of services to assist U.S. fishing industry businesses involved in the export of fish and fishery products. In addition, it advises seafood marketers about foreign regulations and maintains contacts with foreign government regulatory agencies to resolve sanitary and hygienic issues.

National Technical Information Service (NTIS)

This organization disseminates the results of U.S. and foreign government-sponsored research, development, and engineering activities. For more than 60 years, NTIS has allowed U.S. firms, universities, and the public to access over 3 million publications in 350 subject areas. As a source for U.S. government scientific and technical information, NTIS manages software, data files, and databases produced by federal agencies. NTIS presents findings in the form of newsletters, computer searches, and data files.

Trade Development Industry Officers

These officers operate within the DOC as industry specialists who work with manufacturing and service industry associations and firms to identify trade opportunities and obstacles. To assist U.S. businesses in their export efforts, industry experts conduct executive trade missions, trade fairs, product literature centers, marketing seminars, and business counseling. These industry officers (see appendix L) are organized into the following sectors: technology and aerospace, basic industries, textiles, apparel, consumer goods, service, environmental technology exports, and tourism. Trade Development also offers valuable trade statistics that can be accessed online.

Trade Information Center (TIC)

This center is often the first point of contact for U.S. exporters. A hotline directs business executives to the appropriate offices within the U.S. government agencies that assist exporters. Information previously provided through TIC’s homepage has since been integrated into U.S. government’s Export.gov website, and provides useful information on government programs, trade education events, regulations related to exporting and importing, and so forth. Information is provided free of charge, and companies may access the center via a toll-free number or on the Internet.

World News Connection (WNC)

This online service monitors non-U.S. media including foreign broadcasts, news agency transmissions, local newspapers, periodicals, and government statements. The data covers socioeconomic, political, scientific, and technical issues and is pulled from translated and English-language sources. Generally, the information is available within 24–72 hours from the time of original publication or broadcast. Information is provided for most countries in Europe, Asia, Eurasia, the Americas, the Middle East, Africa, and Oceania. WNC is priced on a flat-fee basis according to the length of the subscription and can be purchased for a single user or a network. Access is available through Dialog, a leading provider of online-based information services.

U.S. Department of State

U.S. Department of State Regional Bureaus

Regional bureaus of the U.S. Department of State provide country-specific economic and political analysis for U.S. companies. Country desk officers in these regional bureaus maintain regular contact with overseas diplomatic missions and are a valuable source of information. The bureaus include African, Inter-American, East Asian and Pacific, Near Eastern and South Asian, and European and Canadian Affairs. When contacting these bureaus, companies should ask to speak with commercial coordinators.

U.S. Trade Representative (USTR)

This office is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy and leading or directing negotiations with other countries on such matters. USTR provides publications to exporters challenged by foreign barriers to trade and unfair trade practices. It also is responsible for complaints against foreign unfair trade practices. Information on specific industries and sectors can be obtained through USTR’s sector offices. USTR also publishes a newsletter, Trade Talk, which provides news and information on U.S. trade policy. To subscribe to Trade Talk, please see their website.

World Bank

The Library Network

This network of libraries and resource centers serves the World Bank and the International Monetary Fund. Its mandate is to provide information, products, and services to support the commitments of the two institutions. The network also offers research services, consulting, procurement of information products, content organization, and document delivery while monitoring the latest information, industry trends, and business challenges. Only the following libraries admit visitors, and appointments are required well in advance.

The Joint Bank-Fund Library (JL)

JL is the largest library in the Network. The core collection includes materials in the areas of economics, trade, public policy, international and governmental finance, government statistics, development issues, and economic conditions of the countries of the world.

World Bank Group Library (WBG-LIB)

The WBG-LIB provides useful resources for a broad scope of research domains, including agriculture, industry, energy, environment, finance, and development, among many other topics.

Other

United Nations Conference on Trade and Development (UNCTAD)

UNCTAD compiles statistics for the analysis of international trade, foreign direct investment, commodities, and development. Statistics are based on existing national and international data sources. Users have free access to the UNCTAD stat data dissemination system, making comprehensive statistical time series and various trade, investment, and development indicators available to those who visit the site. UNCTAD also produces statistical publications such as the Handbook of Statistics, the World Investment Report, the Trade and Development Report, and the Commodity Price Bulletin.

WTO and Multilateral Affairs office (WAMA)

This division of the Office of the United States Trade Representative serves as a contact point for U.S. multilateral trade policy activities in multilateral institutions such as the World Trade Organization (WTO) and Organisation for Economic Co-operation and Development (OECD). WAMA, formerly known as the Office of Multilateral Trade Affairs (OMA), provides technical expertise in regional and bilateral trade negotiations on topics such as labor, environment, services, government procurement, trade remedies, and trade capacity building.

USA Trade Online

The Foreign Trade Division of the U.S. Census Bureau publishes USA Trade Online, the official source for U.S. merchandise trade data. This online service provides current and cumulative U.S. export and import data for over 18,000 export commodities and 24,000 import commodities. Subscriptions to the service are available online on a daily, monthly, and annual basis.

Multimedia

e-Institute

The e-Institute was introduced by the World Bank as a means for development practitioners to educate themselves on the latest development trends, enhance their skills, and share knowledge through online learning communities. The e-Institute is essentially a virtual learning classroom that offers e-courses, webinars, and e-communities that help address complex real-world problems in areas such as governance, health, cities, climate change, and public private partnerships. In addition, the portal also provides access to free monthly podcasts and webinars, video success stories, multimedia toolkits, and other resources.

Global Reach Blog

Global Reach is the official blog of the U.S. Census Bureau’s Foreign Trade Division aimed at individuals in the trade community. The blog provides up-to-date information on the U.S. trade deficit, import requirements for various goods, export compliance, as well as commodity-specific subjects.

Export Training Videos

Through the combined efforts and expertise of the U.S. Census Bureau and the International Trade Administration, a collection of export training videos have been developed that cover the gamut of questions many businesses face when considering how to begin or expand on their export operations. Individuals possessing all degrees of experience in exporting can benefit from these presentations, as introductory topics such as “A Quick Guide to the Foreign Trade Regulations” are complemented by more practical discussions on matters such as “What is a Freight Forwarder?”