The world is becoming a smaller place. Not only are large corporations exporting, but also SME’s. A lot of them. These businesses are involved in many aspects of international trade, including: outsourcing, global supply chains, international subsidiaries, etc.

If you’re a domestic business: How do you know when it’s time to expand to a foreign market? What expertise are required? What types of risk mitigation tools are available? 

The Certified International Trade Professional (CITP) Designation through The Forum for International Trade Training (FITT) provides the ins and outs of international trade. The program allows individuals and businesses to fully comprehend all aspects of trade.

Learning topics include:

International Marketing, International Trade Logistics (Supply Chain), International Finance, International Law, International Distribution, International Research, Cultures, Geo-politics

I received my international trade training at Algonquin College (through the Business Administration, International Business major). I would highly recommend the program to all considering global expansion or joining a global business.

I will be posting excerpts from projects I worked on, covering various areas of international trade  including an International Marketing Plan, a SWOT Analysis, and more. Stay tuned, please.   

Copyright © Esha Abrol, Canada. 2009

Follow me on Twitter: www.twitter.com/eshacitp

Copyright © Esha Abrol, Canada. 2009

“Persistence is the single most important word in success.” – Terry Matthews

He’s started 80 companies. He’s been directly involved in all of them. Terry Matthews was one of the keynote speakers at the Eastern Ontario Economic Showcase, along with W. Brett Wilson and Donald Trump.

Matthews started his talk with a quote from Darwin,

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” – Darwin
Matthews allocates his success to change and his ability to adapt. He says, “Act in times of change, or be acted upon.”

“Where there’s change, there’s opportunity.” -Terry Matthews

Competing with Outsourcing

As Asia continues to prosper, global competition continues to intensify. India and China have been able create a strong presence in the technology industry, further increasing competition. Many have realized the strong resources available across the globe at a fraction of the cost -– the amount of organizations outsourcing, have clearly reflected this.

Matthews points out, in Shanghai, the highest paying jobs pay $18,000/year. His key competitive advice: the first-mover advantage.

How does the first-advantage work?

Being the first to kick-off a new strategy to create a presence and build a reputation in an area no business ever has, creates an image the consumers’ mind. Successful strategies will be copied – naturally, everyone will want their piece of the pie. It’s important to remember pioneers will benefit from repeat business as customers loyalty remains to be a major advantage in the first-mover concept.

-Esha

Copyright © Esha Abrol, Canada. 2009

I had the opportunity to attend a talk with The Donald himself while he was in Ottawa yesterday. At the event, other keynote speakers included: W. Brett Wilson (Dragon on CBC’s Dragon’s Den, co-founder of FirstEnergy Capital Corp.), Terry Matthews (Chairman of Mitel Networks, has started 80 companies).

Brett Wilson’s talk: Brett shared his definition of success. His talk was personal. While he spoke, everyone listened. In the end, he discovered the core sources of his happiness were entrenched in: his health, kids, and community. The standing ovation he received by 4000 + audience members reflected the quality and passion of the content he shared. Powerful speaker.

Donald Trump and Ottawa Mayor, Larry O'Brien

Near the tail end of the event, Trump graced us with his presence. Trump talked a bit about himself, real estate, his thoughts on luck, and more – with that same “you’re fired!” kind of attitude. Funny guy. Here’s a bit of what he spoke about:

Real Estate:

As real estate price tags have dropped dramatically during the economic downturn, investing in real estate has become more attractive. Trump imparted some wisdom on the subject, as he, as well, has been taking advantage of low prices. He only does deals based on seller financing. If no such option is offered — no deal for Trump. There are many advantages to seller financing, including:

1) No points
2) Low interest
3) No down-payment (or a reduced down-payment)

Success – The secret sauce:

“If you’re successful in one area, you can be successful in another because it takes certain ingredients to be successful.” – Trump

His recipe for success: lots of passion, ability to handle pressure, a dash of luck, and persistence.

Luck:

He started off the topic talking about a sadly accident-prone friend. The story made us believe in ‘unlucky’.
He then recalled a golf friend mention: “the harder you work, the luckier you get”. He shared an example from his own life. He talked about his struggles with repaying debt in the early 90’s, with bankers constantly calling. One night during this time, he ended up attending a black-collar event where bankers would be present. He didn’t want to go, but did anyway. He snuck in as he didn’t want the bankers to witness him getting out of a limousine, while they arrived in yellow cabs. Not to mention, he owed them millions. As he networked, he met a banker to whom he owed money to. They didn’t quite hit it off immediately. By the end of the night, they developed a friendship with one another and were able to negotiate terms in which the loan could be paid back. He assigned the strength to get up and attend the party to work and persistent attitude, while meeting that banker and winning him over, to luck. He said that night saved himself from drowning in debt and he wouldn’t be where he is if it weren’t for that party.

Pressure and how to cope with pressure:

Trump spoke about an event wherein a friend approached him for advice. She had an upcoming speech, where important people would be in attendance. She was extremely nervous and had even enrolled herself in a course to help develop her public speaking skills. He told her to forget about it, that it means nothing. He referred to recent natural disasters wherein thousands lost lives. In comparison, the speech means nothing –- “nobody cares what you say”. Now, I wasn’t expecting that, but the objective of this way of thinking = telling us to reduce pressure as much as possible and your mind will be able to focus on the ultimate goal. Find ways to take off the pressure.

“Many of the people I know, the smartest people, are not the most successful. You have to have the ability to handle pressure.” – Trump

 
-Esha

Copyright © Esha Abrol, Canada. 2009

I apologize for the absence. I will be undertaking a new initiative. That is, to blog more often!

-Esha

How do you measure success in start-up?

I’m going guess that the most popular answers would include: sales, profit, and cashflow.

But what about personal gain? Experience, contacts, character development, and knowledge gained.

Why is Silicon Valley, California a region of such commendable innovation? Is the region populated with only ambitious entrepreneurs that never make mistakes? That would be great. Although Silicon Valley is made up of many intelligent, ambitious people – of course, everyone makes mistakes. Many projects fail, businesses fail. So how does Silicon Valley do it? This culture is open about talking about mistakes and lessons learned in business. Upon unfavorable implementations, entering a state of hibernation to avoid comments like, “I told you so” from cynical friends is not an option. Rather than hiding or fearing competitors moving ahead with knowledge of what ‘not-to-do’, the idea of the industry moving forward has been adopted. As competitors learn of ineffective strategies, leapfrogging becomes a great benefit for the industry as a whole and the consumers. Change and improvement is embraced with a sense of pride for start-ups that flop. I suppose you can say these flops are digested with a healthy dose of salt. The lessons learned hold a high importance, ultimately… making flops respectable…

A couple of years ago, during a conference with Mr. Michael Dell, the words that stood out most for me were: “Learn from your mistakes”. We’ve heard this before, realizing the importance of these words is major.

Personal gain, in terms of lessons learnt is something that can not be taught or fully understood through the exchange of words.  Compensation in the form of experience as an entrepreneur and character development is often underrated with entrepreneurs that do not succeed with one specific project. Many may not realize that it is not unusual if it takes more than one try to finally create the winning product/service.  All entrepreneurs I’ve had the opportunity to meet, persistence, passion, and discipline have been three common attributes - in my opinion, the two most important attributes.  

A part of Silicon Valley’s success comes from the strong network of like-minded people and experiences shared. The skills that entrepreneurs bring to the table are valued and respected. Creating an open network, allowing entrepreneurs to embrace ideas and concepts that work and concepts that don’t, is essential to the success of a region.

The importance of learning from a mistake is not easy. Moving forward and using the knowledge, experience, and network gained to re-strategize is an opportunity to be capitalized on.

-Esha

 
Copyright © Esha Abrol, Canada. 2009

           International trade provides countries with mutual benefits. It promotes globalization and allows businesses all over the world to achieve economies of scale by purchasing goods and services, which may be more cost effective, from other countries and capitalize on selling goods which involve low (labour) costs.  Trade measures are required to enforce laws and obligations so all countries can benefit and grow. The Geneva based organization, otherwise known as The World Trade Organization (WTO), helps international trade flow smoothly by imposing rules and regulations pertaining to tariffs and trade between member nations. The system attempts to remove trade barriers worldwide, promotes world peace, stimulates economic growth, encourages good government, and the basic principles to make life easier for all.(1)  The organization includes agreements such as: GATT, GAT, TRIPs, Anti-Dumping Agreement, Subsidies & Countervailing Measures Agreement, SPS Agreement, and an Agreement on Safeguards. These agreements allow all WTO member countries to have a fair shake when playing on the big field. Focusing on two agreements of the WTO, The Anti-Dumping Agreement and the Agreement on Safeguards are used as protective measures which promote fair trade while protecting the domestic market against imports. Although they have the same purpose, there are many differences between the two measures. A safeguard may be imposed when trade is working too well, wherein anti-dumping measures are taken when trade is not working.

            Safeguards are considered “emergency actions”(2), “here, the injury has to be serious”(3) This measure applies to all WTO members wherein the restriction against certain goods applies to all WTO members importing this good to, for example Canada. Safeguard actions are used in situations where trade is fair; however, can be requested by the Canadian government to restrict certain imports because despite being fair, the imports are injuring the Canadian industry. Although the goods are not being dumped nor are they being subsidized, a safeguard can be put into place when a good is being flooded into the domestic market and jeopardizing it. A safeguard would be considered in this type of situation in hopes to buy time so the domestic company can still exist. The restriction of the particular good is temporary and only for a short time with the option to file another safeguard after 24-months (upon approval). However, if a safeguard remains for more than 6 years, compensation must be provided to the importing countries (unlike with anti-dumping measures). The prime objective for a government to take on such an action would be to give domestic companies time to adjust and catch up to the imported “technology” and become more competitive.

            To commence a safeguard case, it must be requested by either the domestic company or the government. In regards to the CITT’s role, only recommendations can be made in a safeguard case wherein it is not binding until government approval whereas automatic measures are taken in an anti-dumping/countervailing case.  For a safeguard to apply there must be an increase in imports which are unforeseen and harm should be caused by the sudden surge. The domestic company should be able to provide evidence proving the harm with information such as: lose of market share, dropping sales, etc.   

            Dumping is an illegal act wherein a country fails to abide by the WTO agreement.  It occurs when a product is flooded into a market, causing injury to the domestic industry due to unfair trade practices.  Dumping can cause damage and be identified in one of three forms, which include causing: injury, threat of injury, or retardation. To file a complaint against this form of unfair trade and commence an anti-dumping case, firstly, the Canadian company (assuming the Canadian company is the complainant) must be able to present evidence of material injury as reduced sales, market loss, lower inventory turnover, etc. Once it is clear that material injury has been caused due to the imports from the developing country which is offering their goods at extremely low prices, the complaint is taken to the Canada Customs and Revenue Agency. At this point, investigation is done and if unfair is suspected, a preliminary duty is levied. The CCRA is responsible for conducting a questionnaire and collect information regarding both parties involved: the importer and the exporter. If dumping is occurring, SIMA determines the margin of dumping in order to increase the duty levied accordingly. At this point, all information gathered is sent to the CITT for the final verdict, which is determined by the tribunal. If in fact, dumping was evident, duty would be, most likely, increased which ultimately will cause the importing company to higher prices to make up for this additional cost. This promotes fair trade and if dumping was actually the case, the Canadian company should be able to get back up. In an anti-dumping case only one other source is inquired. The two parties involved are the respondent and the complainant. 

            An example of anti-dumping is demonstrated in the relatively, recent case involving Canada and the U.S. Although the dispute has now been settled, in 2002, Canada was accused for flooding the U.S. market with softwood lumber. Investigators found that Canadian softwood lumber was being unfairly subsidized by the government and then being dumped in the U.S. at prices which were below normal value. The selling of lumber below normal value created issues, in which it was claimed that the effects of Canada’s lower priced lumber was causing material injury to the United States’ industry. Once this was discovered, the U.S. government imposed import tariffs in order help eliminate/lessen the effects of Canadian competition by creating a barrier as it, “raises the price in the importing country relative to the price in the exporting country and it reduces the volume of trade.”(4) This protection measure was put into place to defend the American lumber industry by significantly marking-up the Canadian softwood lumber prices through import tariffs. Ultimately eliminating Canada’s lower price advantage.   

            In conclusion, the key differences between anti-dumping and safeguards are that anti-dumping is enforced to eliminate illegal trade which causes injury to the domestic industry whereas safeguard measures are imposed to protect the domestic industry against an unforeseen increase in imports which does not involve any illegal acts. Another difference is the number of sources involved, an anti-dumping case involves only one source, for example, Canada (complainant) and the dumping country whereas safeguards require inquiries of many different countries and all sources of imports must be studied to truly understand the nature of the global industry.

-Esha   

Copyright © Esha Abrol, Canada. 2008
 

References:  

 (1) Global Entrepreneurship book. FITT Skills. Version 4.1. Version 4.1. Forum for International Trade Training Inc. 2002.

(2) WTO. Retrieved March 1, 2007 Web site: http://www.wto.org/english/tratop_e/safe_e/safeint.htm

(3) WTO. Retrieved March 6, 2007, from UNDERSTANDING THE WTO: THE AGREEMENTS Web site: Retrieved February 26, 2007, from UNDERSTANDING THE WTO: THE AGREEMENTS Web site: http://www.wto.org/english/thewto_e/whatis_e/tif_e/agrm8_e.htm

(4) WTO. Retrieved March 4, 2007, from DISPUTE SETTLEMENT: DISPUTE DS277 Web site: http://www.wto.org/english/tratop_e/dispu_e/cases_e/ds277_e.htm

Legal Aspects of International Trade book. FITT Skills. Version 4.0. Forum for International Trade Training Inc. 2003.

Thompson, Robert (2007).Globalization and the benefits of trade. Chicago Fed Letter.Chicago . Iss. 236, pg. 1, 4 pgs.

WTO. Retrieved March 1, 2007, from Agreement on Safeguards Web site: http://www.wto.org/english/docs_e/legal_e/25-safeg.wpf WTO. Retrieved March 1, 2007, from AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES Web site: http://www.wto.org/english/docs_e/legal_e/24-scm.wpf

Traffic + Crowds + Numerous yellow cabs = The Big Apple. OK, I suppose a less cynical person would notice there is a lot more to New York City than just the traffic.

My short trip to Manhattan included a visit to: the Financial District, Federal Reserve, United Nations, Wall Street, Times Square, Rockefeller Center, amongst other tourist destinations. I am a little embarrased to admit, but yes, I also had the opportunity to pose with notable celebrity… wax figures at The Madame Tussauds Wax Musuem, located in Times Square. It was fun.

My fav was the United Nations Headquarters. Our group received a tour, wherein we had the chance to see artwork, which has been gifted from countries around the world. We also had the opportunity to view some of the ornate Chamber rooms, where discussions on global issues were underway. It was amazing to see how a truly international organization, with such great influence, operates.

All in all, the lights, the pace, and the aesthetics of the City inspired me. For anyone pursuing a career in photography or filmmaking, your portfolio is incomplete without a hint of NYC! Solely due to the aesthetics of the location.

Wall Street

Rockefeller Center

United Nations Flag

Times Square

First photo of Wall Street

View from "The Top of the Rock"

Copyright © Esha Abrol, Canada. 2008

I recently attended a conference wherein I observed six influential speakers share their views on a topic. The topic was rather new to me. It was interesting to see how each speaker shared their wisdom.  Each speaker delivered information through distinctive communication styles. The cultural and speaking style differences  were evident and distinct. Some speakers made more of an impact over others.

The most effective speaker:

The speaker that stood out had a good sense of humour, he was audible, he spoke with passion, which gave him a certain level of genuineness, he exuded confidence, it was clear that he had a very deep comprehension of the topic and that he was prepared to speak, he provided hand-outs, he interacted with observers, he told stories – he had the gift of the gab. Also, when others spoke, he took notes and showed interest. And he asked for feedback at the end.

The poor characteristics observed were: too self-absorbed wherein they did not interact with the audience, some were inaudible when they shared crucial information, and questions were answered with hesitation, poor posture.

I think strong communication skills come from practice and respecting feedback and constructively improving your presentations based on audiences’ comments and response.  I think observing good speakers speak can also help. Taking the good points and emulating them will provide you with a basis for how you want to present yourself.

Esha

Copyright © Esha Abrol, Canada. 2008