National Export Strategy 2002 - International Trade Administration ...

Unlocking America’s Potential
coordinated trade promotion strategy that provides our exporters with the best
possible information, expertise, support, and financing to follow on to these
agreements, they cannot fully reap the benefits of our market opening efforts.
Our approach acknowledges that—for companies of any size—imports and
foreign investment can be critical to global competitiveness and are just as
fundamental to our economic prosperity. 3 In the big picture, imports can help
generate exports, and without investment abroad, our export performance would be
diminished. 4 Indeed, American exporters tend to be importers and international
investors, because in today’s global market, all of these activities are tied together.
Except for those companies that are at the very early stages of global engagement, it is
difficult to find a company that is just an “exporter.” Most companies import at least
some portion of the finished product they then export. And most exporters do not
see their foreign sales really take off until they begin to invest abroad. As the
company becomes more globally integrated and competitive, their employees and
communities benefit. 5 “Best practice firms” that are committed to exports and
investment abroad (and may also be active importers) are more efficient and
productive and generate more stable and highly paid jobs than companies that do
not. 6
Not only does an integrated global strategy benefit U.S. companies and workers, it
has major economic benefits to the host countries, which redound to the United
States. Countries that host large amounts of U.S. and other foreign direct investment
are better, more stable economic and foreign policy partners. Indeed, the missions of
a number of TPCC agencies—the Overseas Private Investment Corporation, the U.S.
Trade and Development Agency, the Agency for International Development, and the
State Department—are dedicated to capturing the social returns that spring from the
promotion of U.S. trade and investment abroad, which go beyond the purely private
returns to the companies.
An important reason why we need world-class trade promotion programs,
however, is to grow our small businesses into the most competitive companies in the
world. Small businesses create three out of every four new U.S. jobs and are
responsible for much of our economy’s innovation and generate over half of our
private gross domestic product. Although 97 percent of U.S. exporters are small and
medium-sized companies, and 40 percent of U.S. exporters have between one and 19
employees, fewer than 1 percent of our small businesses export. Proportionately far
3. Howard Lewis III and J. David Richardson, “Why Global Commitment Really Matters!” Institute for International
Economics, October 2001.
4. Exports to a foreign affiliate of a U.S. company accounted for 25 percent ($173 billion) of total exports in 1999. (p. 38,
Survey of Current Business, March 2002).
5. Some states and communities are especially dependent on imports. Seven percent of Washington State’s employment
depends on imports. It is no coincidence that Washington is one of the Nation’s leading states in exports per capita.
6. See Lewis and Richardson. In addition to the United States, the comparison held for firms in Belarus, Russia, Ukraine,
Turkey, Chile, Bulgaria, Australia, and Mexico.
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