Going global


The pace of globalization has
increased over the past decades, and
it will accelerate in the future. Ohio is helping fuel this growth. It is the seventh-largest exporting state in the union, and it’s
the only state whose exports have grown
every year since 1998.

 

“International business is both a threat
and an opportunity,” says John Gajewski,
executive director in the Workforce and
Economic Development Division of Cuyahoga Community College’s Corporate
College.
“Ohio lost 71,000 jobs to imports
from December 1999 to December 2006,
but we have 261,000 jobs tied to exports.
So, on balance, we have a job gain.”

Smart Business talked to Gajewski
about the opportunities that exist in the
global market for Ohio businesses.

Where do opportunities exist for U.S. companies not yet involved in imports and
exports?

The opportunity for Ohio companies in
exports is very good, especially in the automotive, rubber, iron and steel industries.
Ohio has a good tradition of exporting
products internationally, and we can continue to capitalize on it.

Also, a study of 100,000 companies by an
independent research organization determined that Ohio ranks No. 1 in the U.S. in
productivity. When considering the state’s
tradition of exporting and its productivity,
there exists a great opportunity to become
a larger exporter of products.

In what areas of the world do the most opportunities exist?

Our largest export regions, in order, are
Canada, Mexico, the European Union and
the Asia-Pacific region. American exports
to China have increased 400 percent since
1999. Based on its huge economy and economic growth, China clearly has to become one of our top priorities.

At the most basic level, what do businesses
need to know to start?

At an elementary level, companies just beginning an import/export business need
to remain current on regulations and compliance. This is most important for managers and administration staff who oversee
this part of the business on a daily basis.
For example, the U.S. has regulations on
where companies may export and the type
of technology that can be exported. The
list of countries changes periodically. It is
important for employees to know what
types of technologies and products are
appropriate for trade and where they can
be traded.

Doesn’t the decision to take business overseas require a major change in the corporate
business plan?

If your business plan has been essentially
one of selling domestically, the owner/-manager needs to evaluate whether expansion outside the U.S. is justified. You have
to take into consideration factors like sales
channels and sales force. Is your product
acceptable to the international community? Does it require approval by foreign regulatory agencies?

If you’ve decided that doing foreign business would be an opportunity for your company, you have to decide on strategies. That
means examining and modifying current operations and learning how to integrate an
international component as it relates to the
supply chain, sales and marketing, low-cost
engineering and manufacturing.

What about cultural differences?

As you develop your international strategy, you want to be aware of business practices and business etiquette in your target
market. That could range from regulatory
affairs to common business courtesies like
how to effectively negotiate. For example,
in South America, it’s not unusual to begin
a negotiation by establishing a personal
relationship. That discussion could be over
breakfast, sharing personal information,
family history and establishing a relationship — and then moving on to business.

Our institution uses a unique online training program that allows participants in a
business etiquette/practices seminar to
map their own personality traits and compare them with the cultural norms of the
country they currently or hope to do business with. This quickly illuminates where
an executive or manager needs to make
modifications in his or her approach. It is
most appropriate for sales professionals,
marketing executives and program managers who may be starting to travel internationally or teleconference with peers
and program teams around the world.

To optimize success, it is best to know
the cultural norms that you are dealing
with. Blended training tools that consist of
instructor-led discussion and online learning, like ours, provide the necessary information and data for a highly successful
training experience.

What other resources exist for those seeking
to expand their business internationally?

The Ohio Department of Development
(800-848-1300 or www.odod.state.oh.us) is
a good place to start. You can also get more
information at colleges and community
colleges, such as Tri-C’s Corporate College
Division.

JOHN GAJEWSKI is executive director in the Workforce and
Economic Development Division at Tri-C’s Corporate College.
Reach him at (216) 987-3048 or [email protected]. The
Web site is www.corporatecollege.com/I_GlobalBusiness.aspx.