Michigan State University Extension
Extenstion International Trade Res. - 01279602
03/31/96
Author:Peter J. Robinson, Jr.
TODAY, there is a lot of hype about the Information Superhighway and theInternet. Firms and individuals are busy trying to understand how the new technology affects them and their businesses. Large corporations and small businesses are looking to develop strategies to support their international trade activity.
The World Wide Web of the Internet is just two years old, yet it holds a lot of promise for those pioneers willing to utilize the tools and resources that it provides. Instant access to the Internet can be had for the average price of $10 a month through on-line services such as Prodigy,CompuServe, America Online, and other service providers. For this small fee, users can "surf" the Internet and be in communication with businesses globally for the cost of a local phone call.
The Internet, like television and the print media, is yet another resource developed in the emerging new media to promote products and/or services. The similarities end there. The Internet also adds the ability to communicate quickly, and with less cost. It also allows firms with a need for information to find it quickly and easily. The Internet can be used in a variety of ways to enhance your business internationally. The following are just some of the ways:
General Trade Information and Support
The same support mechanisms that exist in our normal activities, exist in cyberspace. International trade organizations have home pages on the Internet. These include the U.S. Council for International Business http://www.uscib.org, the Small Business Exporters Association http://web.miep.org/sbfa/ and the National Association of Export Companies (NEXCO) http://www.imex.com/nexco/nexcohom.html.
Some of the industries major publications are on the Internet. Presently, you can get copies of Export Today http://www.enews.com:80/magazines/export/ and all of the other publications are positioning their magazines on the NET. Over 220 export focused resources - books, audio/video tapes, software and business tools are located at Assist International home page http://www.imex.com/assist.html.
Government Support: Since the Internet was developed originally for the government, it is the government that has made the best use of offering its services; particularly the U.S. Department of Commerce http://www.doc.gov/.
Information such as import/export statistics are available, access to specialized regional information and country contact information such as NAFTA, Eastern Europe and Asia http://www.ita.doc.gov/ita_home/itacnreg.html, and general assistance from the Trade Information Center http://www.ita.doc.gov/ita_home/itatic.html.
Other U.S. government agencies are also on the “net”. They include the U.S. Agency for International Development http://www.info.usaid.gov/, the Department of State
http://www.whitehouse.gov/White_House/Cabinet/html/Departme(http://www.whitehouse.gov/White_House/Cabinet/html/Departme http://www.usda.gov/ and the U.S.Customs Department http://www.ustreas.gov/treasury/bureaus/customs/customs.htm(http://www.ustreas.gov/treasury/bureaus/customs/customs.htm
U.S. states are joining in the effort to support foreign buyers knowing about their states suppliers of products. So far, the lead has been taken by the states of Ohio http://natp.iftea.com/ooed/home.html, Alaska http://www.alaska.net:80/~itd/ITD/index.html, and Texas http://www.texas.gov/TDOC_homepage.html.
Foreign governments are using the “net” to assist U.S. importers/exporters to source products in their markets. Trade organizations include the Australians http://www.austrade.gov.au/ and the Japanese
http://www.jetro.go.jp/. Other governments have similar efforts such as Iceland, Sweden and Belgium.
Searchable Directories and Databases:
The Internet is providing the trade community with a variety of searchable databases, some free - others at cost, that list importers, exporters, distributors, wholesalers, and agents. Unique databases include Trade Research and Data Exchange http://www.tradeinfo.com, Wholesalers
Worldwide Marketplace http://www.inetbiz.com/market/, Asia-Pacific Manufacturers & Traders http://apple.ia.com.hk/jk/jk.html, EUROPAGES http://www.europages.com/ and World Importers Directory http://teletron.com/buyersguide.html. Legal Assistance
At some time, all international trade firms require expert legal advice.
The shingle is up on the Internet. Advice and contact information is available from the International Trade Law Home Page
http://ananse.irv.uit.no/trade_law/nav/trade.html from the University of
Tromsø, in Tromsø - Norway, the Global LawNet http://www.lawnet.net and
the Internet On-Line Legal Directory http://www.iigi.com/~iig/ild.html.
Country and Regional International Agreements and Treaties are resident on
the U.S. House of Representatives - Internet Law Library
http://www.pls.com:8001/his/89.htm.
Financing Exports and Receivables:
The “net” is now playing host to a number of organizations offering trade financing both traditional and non-traditional. Old standbys such as the Small Business Administrationhttp://www.sbaonline.sba.gov/business_finance(http://www.sbaonline.sba.gov/business_finance Export Credits Guarantee Department http://www.expo.co.uk/ecgd.html of the United Kingdom.
A specialty site - Commercial Finance Online http://www.cfonline.com/cfo/opps/opps.htm - on the Internet focuses on all types of financing, including: factoring,receivables financing and forfaiting. One of the pioneers in export and receivable financing on the "net" is Actrade Internationalhttp://actrade.interse.com/index.html, an export management company arranging finance for traders. Major banks are on the "net" and accessible to communicate your needs to. They include Wells Fargo http://wellsfargo.com/, Bank of America http://165.32.204.6/, Citibank http://www.tti.com and Chase http://www-bio.llnl.gov/fstc/principals/chase_manhattan.sht(http://www-bio.llnl.gov/fstc/principals/chase_manhattan.sht International Trade Issue Support
In reality, a lot of what is on the Internet are electronic documents. Documents that assist you in some of the timely topics and issues for the international trade community. Issues like "Save the U.S. Department of Commerce" http://www.mdle.com/commerce.htm, Insurance Guidelines for the Exporter
http://www.imex.com/goexport/nyeac/export/ex_forum/insuranc(http://www.imex.com/goexport/nyeac/export/ex_forum/insuranc
Understanding Letters of Credit http://www.imex.com/goexport/nyeac/export/ex_forum/lcredit.(http://www.imex.com/goexport/nyeac/export/ex_forum/lcredit.
http://www.imex.com/goexport/nyeac/export/ex_forum/forms/or(http://www.imex.com/goexport/nyeac/export/ex_forum/forms/or http://www.imex.com/goexport/nyeac/export/ex_forum/telecom/(http://www.imex.com/goexport/nyeac/export/ex_forum/telecom/ How To Export http://www.dbisna.com/dbis/global/hglobal.htm) are available - for the taking on the net. For those exporters interested in how the harbor maintenance fee issue affects their business, visit NEXCOs updates on http://www.imex.com/nexco/nexcohom.html.
Locating Potential Buyers:
This new technology has attracted many organizations offering both proprietary and non-proprietary trade leads. Leads are gathered from their own network of users, off of cyberspace bulletin boards, the U.S. Department of Commerce, the International Chambers of Commerce, and through global networks under development by the United Nations. Over 70 trade lead sites have been identified offering searchable capabilities to gather information on potential buyers of product. Sites like IMEX Exchange http://www.imex.com offer users access to a multitude of trade lead systems available on the Internet.
Qualifying Potential Customers
There is not a trade lead or a request from overseas that does not bring up the questions - Who are they? and Are they real? The "net" allows users to access a variety of credit service providers like Dun & Bradstreet
http://www.dbisna.com/, and TRW http://yesonline.com/TRW/. Foreign credit service providers such as the largest German provider - Creditreform
http://www.creditreform.de/creditreform/ are available via the "net". Users can obtain credit and business information directly on the Internet.
Marketing Your Products/Services
Analysts and "surfers" alike are still debating over the value of the Internet and its usefulness in marketing products and services. The answer to the infancy question is - YES - there are those who are making money on the “net” now. Traders are developing contacts and networks to sell on the Internet. Because of security concerns, most are still using their traditional methods of doing transactions and using the “net” to attract buyers and sellers only. Many sites allow companies to list their products on the "net" - free of charge. Some sites charge a small fee. Other sites like Trade Point USA http://www.tpusa.com, Internet Tradelines http://www.intrade.com and Trade Compass http://www.tradecompass.com are offering the promotion of catalogs via the Internet. Most will also offer hyperlinks directly to the clients home page, thereby generating additional visitors to your own "home page" site.
Keeping An Eye On The Future
New tools are being touted as additional support for users of the Internet. The future, which is now, will provide audio and video capabilities. Buyers and sellers worldwide will meet on the “net”, hold meetings and negotiate deals - "in sight" of each other. Financial mechanisms such as digital cash or e-cash will allow for quicker and less expensive transactions. Today, the technology is in our hands to use the Internet for long distance telephone calls to clients, customers, agents and distributors.
This technology may not replace the usual ways in which we have transacted international business, but it sure will change the way we continue to do business globally.
ASSIST INTERNATIONAL 60 Madison Avenue, 2nd floor New York, NY 10010-1600 USA
Telephone: (212) 725-3311 --- FAX: (212) 725-3312 --- E-mail:Info@assist-intl.com