Why Johnny can't export.Here is an abridged online posting from the editor, and how readers reacted. For the full exchange, go to www.chiefexecutive.net. You'd think that with U.S deficit in goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. hitting $725 billion in 2005 that a great debate would be taking place about how to spur American exports. But hardly a word is spoken--and that's a tragedy. [ILLUSTRATION OMITTED] The heart of the issue is small and medium-size companies. The CEOs of many of these companies are sitting ducks Sitting Ducks is an iconic lithograph created by Michael Bedard in the late 1970s. It depicts a literal interpretation of the idiom "sitting duck". Three ducks are relaxing in the sun on white chairs by the poolside, one looks up and notices two bullet holes in the wall. . Part of it is their own fault--they haven't learned how to absorb foreign nationals into their senior managements or onto their boards to give them the insight and connections they need. Some haven't been willing to devote the time or money to explore markets. Or perhaps they haven't invested in adapting their goods or services to foreign tastes. These CEOs need a good swift kick in the backside. But part of the blame can be placed on the doorstep of governments and banks, which have created a nearly impenetrable thicket of complexity. They have created actual disincentives to export. Here's how: * The U.S. Department of Commerce has become a dumping ground for political appointees and has too many layers of bureaucracy. It is woefully woe·ful also wo·ful adj. 1. Affected by or full of woe; mournful. 2. Causing or involving woe. 3. Deplorably bad or wretched: aloof from the local and regional level. * Getting an export license for a technologically sensitive item is still a nightmare, particularly to China. * OPIC OPIC Overseas Private Investment Corporation OPIC Office de la Propriété Intellectuelle du Canada (French: Canadian Intellectual Property Office) OPIC Organization of Professional Immigration Consultants OPIC Ohio Public Interest Campaign and the Export-Import Bank Export-import Bank (Ex-IM Bank) The U.S. federal government agency that extends trade credits to U.S. companies to facilitate the financing of U.S. exports. are oriented toward major companies that don't really need their help. The Small Business Administration also isn't effective. * Banks also have a confusing thicket of procedures and paperwork surrounding letters of credit. There is no one single magic bullet (jargon) magic bullet - (Or "silver bullet" from vampire legends) A term widely used in software engineering for a supposed quick, simple cure for some problem. E.g. "There's no silver bullet for this problem". solution, of course. But steps need to be taken to improve the American export infrastructure. |
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