Ask The Expert - May 2007

Here’s to You Mrs. Robinson:

Global Trade is the New “Plastics”

by Tim Rubald

I have one word for you – plastics,” was the advice given young Benjamin Braddock in the classic film The Graduate. Some forty years later, the advice should be “global trade.”

The Nevada Commission on Economic Development (NCED) is your global trade partner. The agency’s Global Trade and Investment Office assists Nevada businesses to begin or expand trade activities in international markets and attracts foreign direct investment (FDI) to the state.

According to data just released by the U.S. Department of Commerce, exports from Nevada in 2006 reached a record $5.49 billion, marking the fifth consecutive year of record export growth for the Silver State. NCED’s Global Trade Office provides export readiness seminars and conducts trade missions to assist Nevada’s companies to expand their marketplace.

The largest category of export products for Nevada is precious metals, primarily gold. The next six largest product categories are: electric machinery, toys, games, sporting equipment, industrial machinery and ores.

The state’s top three export markets, Switzerland, Canada and Greater China (including Hong Kong and Macau), showed increases of 46 percent, 24 percent and 58 percent respectively, Japan and Mexico round out Nevada’s top five export markets.

The agency has an innovative International Trade Representative Program available to consult with business owners considering branching into global trade. Trade representatives help locate new markets for the products of resident companies and advise Nevadans of business opportunities in other countries. Their goal is to match interested parties with promising pportunities.

This award-winning program provides international representation for Nevada without incurring the associated major expenses of traditional trade offices. Presently, Nevada has representation in the following nations and/or areas: Italy, Great Britain, Mexico, Japan, China – Beijing, China – Hong Kong and Singapore. NCED conducts extensive background investigations for the best assurances possible that, in each case, the trade representatives are credible.

During the week of May 23, 2007, several of NCED’s trade representatives will be holding meetings in Las Vegas and Reno to discuss ways make their efforts more productive. The timing of this series of meetings will also provide an opportunity for Nevada businesses to meet with these representatives and gather insights and information related to FDI and international trade.

FDI is an under-utilized business development tool. People immediately think of investing overseas for the cost-efficient production of a product. We like to think in terms of reversing the revenue flow by directing foreign investment to the U.S, and more specifically, Nevada, to grow and diversify the state’s business opportunities.

NCED also houses the Office of Diplomatic Relations and Protocol to help Nevada businesses gain an edge in the global marketplace by providing an awareness of the social, political and cultural aspects of doing business in a foreign country. Nevada has one of the fastest growing Consular Corps with 19 countries appointing Honorary Consuls to Nevada. Like the trade representatives, the Honorary Consuls lead trade delegations and facilitate business meetings between local companies and foreign dignitaries.

Companies or individuals looking for information or assistance attracting FDI or doing business abroad should contact the Nevada Commission on Economic Development at (800) 336-1600 or visit the website www.expand2Nevada.com.

Tim Rubald
Tim Rubald is the executive director of the Nevada Commission on Economic Development.