Globalization is real, new technologies, advanced communications and improved delivery options are making the world smaller every day.  We now have access to information and markets around the world with just the press of a few key strokes on your computer.  Know that foreign companies are competing here domestically - which makes you a global competitor right in your own back yard.

Why limit your company’s sales to local or national markets?  There are 6 billion people outside of the U.S.

Globalization is not the enemy.  Increased exports for local businesses means more profits, more profits means more growth domestically which intern means more jobs locally.  Often times globalization is made out to be the bad guy when we lose jobs here in the U.S. - when really advancing technology causes about 70% of job loss.

Within 10 years the Institute of the future predicts that 1/2 of all U.S. small businesses will be global by 2018

The global business train is leaving the station - are you going to be on it or left behind holding your hat and saying I wish I had gone on that ride?

First, be sure to have a strong business plan and check out what kind of financing options the SBA offers.  Government financing options are offered by the U.S. Small Business Administration (SBA 7Am Export-Express Loans, Export Working Capital Programs and International Trade Loan Programs) and the Export-Import Bank of U.S. and some state governments have their own financing programs.

There are many private sources like commercial banks, private export finance companies, export management companies, export training companies, and factoring (houses or factors). 

International payments - can be used as a marketing tool and can give you an edge against a competitor. 

Based on how trust worthy you perceive your buyer to be the following financing options are available.

1.  Cash in advance - ideal and the least amount of risk, but obviously your client has to trust you too.

• Wire transfer is best and is almost immediate
• Credit Card transactions can be done through your bank or services like paypal

2.  Letters of credit - most common and safest payment method

• Provided by a bank for a fee
• Terms and agreements are included in the documents supporting the letter of credit
• Payment is made after all required documents verified and terms are satisfied

3.  Draft or Bill of Exchange - Foreign check

• Draft is used when an exporter desires to retain title of a shipment of products until the payment is made. 
• Takes time to clear the bank (up to six weeks) - may be a fee involved

4.  Open Account - Often used once you have established trust with the client who consistently pays.

• Typically well established customer and has excellent credit
• Be careful - Lack of documents and banking channels may make it difficult to pursue and enforce legal claims

It is the process of exchanging meaningful and unambiguous information across cultural boundaries, in a way that preserves mutual respect and minimizes antagonism and creates inclusiveness.

Miscommunication is today’s greatest workplace hazard.  And with the world becoming smaller and more diverse, miscommunications seem to be happening more and more.  Why?

The typical consumer demographic is changing, our workforce is becoming more diverse, and technology is connecting us to people and regions we have never encountered before. 

People from different cultures encode and decode messages differently, increasing the chances of misunderstanding, so the safety-first consequence of recognizing cultural differences should be to assume that everyone’s thoughts and actions are not just like ours.

Here are just a few tips for having successful cross cultural communication.

• Research the cultures to gain understanding of a culture
• Set clear agendas and expectations of interactions/meetings
• Avoid using slang and idioms, choosing words that will convey only the most specific denotative meaning
• Listen carefully and, if in doubt, ask for confirmation of understanding (particularly important if local accents and pronunciation are a problem)
• Recognize that accenting and intonation can cause meaning to vary significantly
• Respect the local communication formalities/styles, and watch for any changes in body language
• Be careful of written word choices as your communication will be analyzed thoroughly by the recipient
• Investigate a culture’s perception of your culture by reading literature about your culture through their eyes before entering into communication. This will allow you to prepare yourself for projected views of your culture you will be bearing.
• If it is not possible to learn the other’s language, it is beneficial to show respect by learning a few words.

Remember the platinum rule:  Do unto others as THEY would have done to themselves not as we would do unto ourselves.

Do you have a story of when a cross-cultural communication encounter went terribly wrong and how you resolved it.  Please share! 

I attended an event at the World Trade Center for Detroit/Windsor this week and found that the region is actually going to offer many great global business opportunities for those who are willing take some risks now.

Now to be sure - Iraq is still recovering from a war, past regime government issues and trade overhaul.  There are issues with corruption and transparency but with all of these challenges there are still great opportunities to do business successfully in Iraq. 

Iraq has 28 million people, 18 provinces (very tribal and based on religious affiliation) and is centrally located in the Middle East region.  Iraq’s GDP is similar to the U.S. State of Nebraska: $84.7 billion. 

The country has a Federal System of Government and Separation of powers within their court system.  Although we have yet to see if U.S. companies can get a fair shake if a legal dispute arises. There is a Procurement Assistance Center (PAC) for those who may need help in this area and is intended to prevent corruption and legal issues.

The business opportunities in Iraq lay in the following sectors:

• Power/Energy
• Transportation
• Telecommunication
• Housing & Construction both new and reconstruction
• Agriculture
• Health
• Consumer Goods

If you or your company are doing business in one of these sectors than you really should be looking at this market to promote your goods and services.  For more information on doing business in Iraq please visit:

• http://www.trade.gov/iraq/
• http://www.ico-us.org
• http://www.investpromo.gov.iq/english/home.htm

Please let me know if you are currently doing business in Iraq and want to share your experiences, tips and advice.

This risk can be easily mitigated by just a few small preparations.  Jeremy Van Dam, Senior Director at Integrated Directives, Inc helps both government officials as well as civilian travelers have safer experiences when visiting or doing business globally.

Our discussion focused on security tactics on both a personal and physical(assets) level.

With tips like:

1.  Staying between the 3rd and 7th floors to prevent break ins and allowing for fire trucks to reach you in case of a fire emergency.

2.  Carrying important information on your body at all times via a zip drive.

3.  Understand your physical surroundings and landmarks.

I have traveled extensively and all of these tips are great for ensuring you have a safe, fun and great international travel experience.

What is the boy scout motto?  Always be prepared!

Our discussion focused on the following areas:

1.  Swine Flu - Reality of the situation and how the media has sensationalized and played on people’s fears.

2.  Drug trafficking - The history of the issue, who is at war and how the U.S. has played a significant role in this problem.

3.  Benefits of NAFTA

4.  Current Automotive recession and how this affects Mexico

5.  Tips to doing business in Mexico for the short term and in the future.

I also spoke with Vicente Sanchez, the Mexican Consul General for Michigan and parts of Ohio offline. He shared a few pieces of information on these issues.

1.  Mexico’s Fast Diagnosis - A New York Times Article

2.  Mexico’s Secretary of Health (in both Spanish and English)

Note: As with any flu season - please keep in mind you should wash your hands often, cover your mouth when you sneeze or cough (preferably with your arm/elbow area and not your hands which can spread the infection) and make sure your immune system is healthy by taking your vitamins and taking care of your health.

John’s personal experience growing up in the People’s Republic of China and now living as an American for two decades provides insight into the similarities and the differences in business and culture between the People’s Republic of China and the United States.

Specifically we talk about:

1. Shanghai Growth

2.  Education in China and the U.S.

3.  Tips for doing business

If you want to contact John you can at jogu@comcast.net.

As you may know, the U.S. and Canada have the largest and most comprehensive two-way trade and investment relationship in the world, reaching almost $600 billion last year. In addition to being the world’s ninth-largest economy and our nation’s leading trade partner, Canada is also Michigan’s largest export market. For example, in 2008, 53% of Michigan’s exports ($23.8 billion out of the total $44.9 billion) were shipped to Canada (fellow NAFTA member Mexico placed a distant second at $6.4 billion).

Our targeted industries for this mission include:

• Aerospace and defense
• Renewable energy technologies
• Automotive components and service equipment
• Biotechnology/life sciences (including medical devices and equipment)
• Computer software and IT
• General industrial machinery and equipment

One-on-one matchmaking meetings will place you directly in touch with potential buyers or distributors of your products/services, joint-venture partners, technology licensees, and the key players you need to know to successfully break into the Canadian market. You will also attend business meetings (including receptions hosted by the U.S. Consulate Generals in Toronto and Montreal) where you will have an opportunity to meet with government officials and business experts who will share their firsthand insights about the opportunities and challenges of doing business in Canada.

Cost to join is $4,495 USD for members, $5,995 USD for non-members. Price includes five-star hotels, transportation, matchmaking meetings, business briefings and receptions. Automation Alley will take care of all your planning and details before, during, and after the mission. Participation is limited to 10 companies only and deadline to register is May 15, 2009.

For more information or if you have any questions, please do not hesitate to call (248) 457-3200 / (800) 427-5100 or via email: info@automationalley.com.

As someone who loves to learn about the world around me, I am constantly seeking films and ways to catch glimpses of foreign cultures and perspectives. 

India is an emerging nation with many complexities.  They have wonderful talents and gifts to offer the world and just like the U.S. there are many things that could be better! 

This film shows many aspects of Indian life…from the slums to the call center industry focused around a story of survival and hope.  The beautiful fabric of India is on display for the movie going world to see. 

If you are doing business in India or want to learn more about this culture and region, I strongly suggest you read books, watch movies and meet folks from the region to paint your own picture of this vibrant nation. 

Have you read any great books or seen fantastic foreign films that you think others would enjoy about India or other international regions? 

Namaste!

We covered the following topics and trends:

• Computer Forensics Industry and growth of the field
• How businesses can protect their data
• Losses & Liabilities of NOT protecting your data
• Implementing a Security Plan
  • Compliance Standards
  • Understanding Risk
  • Governance
  • Having a Security Plan - People and Process
• Taking your business Global
  • Understanding international standards
  • Protecting your intellectual property

How are you protecting your personal, business and proprietary information?