Getting Involved in Global Trade

- Job Opportunities: Many job seekers focus on large multinational companies like Boeing, Caterpillar, or IBM. However, significant global job potential exists in small businesses.

- Statistics: Only 1% of the 30 million small U.S. businesses export, yet they account for about one-third of total U.S. exports.

- Starting in Global Trade:

- Observation and Determination: Success often starts with keen observation, determination, and risk-taking.

Importing Goods and Services

- Student Entrepreneurs: Students abroad can identify product gaps and become importers by collaborating with producers in their home countries and securing startup financing.

- Case Study: Howard Schultz, inspired by Italian coffee culture, transformed Starbucks in the U.S., later expanding it back to Italy.

Exporting Goods and Services

- Unexpected Markets: U.S. firms can sell unexpected products like beer in Germany and specialized sand in the Middle East, showing diverse market potential.

- Business Models: Airbnb's global success underscores the importance of understanding local cultures and innovative social media strategies.

- Impact: Exporting boosts the U.S. economy significantly, adding $1 trillion annually and generating over 7,000 jobs per billion dollars in exports.

Measuring Global Trade

- Balance of Trade: The total value of exports - imports.

- Trade Surplus: When exports exceed imports.

- Trade Deficit: When imports exceed exports.

- Balance of Payments: The difference between money flowing into and out of a country, including exports, imports, tourism, foreign aid, and investment.

- Goal: To have a favorable balance with more money coming in than going out.

- U.S. Trade Statistics: Since 1975, the U.S. has had a trade deficit, importing more than it exports, especially with China. Despite this, the U.S. remains a top exporting nation.

Fair Trade Practices

- Dumping: Selling products in a foreign market at lower prices than in the domestic market.

- Consequences of dumping: Used to offload surplus or gain market foothold; can lead to penalties.

- Regulations on dumping: U.S. laws mandate foreign firms include overhead and profit margins in their pricing to prevent dumping.