The region of Upstate New York, next door to Ontario, is dividing along trade lines: into businesses that export and those that do not. A new study of the region’s top 30 publicly traded companies shows clear evidence of a two-track economy, with a widening gap in revenue growth between companies that have expanded abroad [...]
The region of Upstate New York, next door to Ontario, is dividing along trade lines: into businesses that export and those that do not.
A new study of the region’s top 30 publicly traded companies shows clear evidence of a two-track economy, with a widening gap in revenue growth between companies that have expanded abroad and those focused on the domestic market. Between 2007 and 2011, companies with international operations or exports have grown their revenue an average of 13% more annually than companies that have stayed at home.
The comprehensive study, done jointly by the World Trade Center of Buffalo Niagara and HSBC Bank (which owns Business without Borders) “reaffirms a lot of things we know,” says Chris Johnston, president of the World Trade Center. “There is a big variance between companies doing business internationally and companies doing business domestically, and that spread directly relates to their growth rate.”
The study looked at the numbers of 30 leading companies headquartered in the area, such as Constellation Brands, Moog Inc., Paychex, National Fuel Gas Company and Seneca Foods. It found that while both international and domestic companies suffered a decline in the darkest days of the global economic recession, from 2008 to 2010, the decline was not as steep for international companies. In the global rebound period of 2010-2011, international companies in Upstate New York grew at a rate of 4.59% versus 1.69% for domestically focused companies.
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Source: Deborah Stokes | Business without Borders
Reynold Martens, Executive VP of GHY International, touches on the impacts of globalization, the growing role of strategy across functional areas, and linkages between business units — three key factors driving the need for a greater awareness of international trade compliance within organizations today. “It was a lot easier when markets were homogeneous, when companies [...]
Reynold Martens, Executive VP of GHY International, touches on the impacts of globalization, the growing role of strategy across functional areas, and linkages between business units — three key factors driving the need for a greater awareness of international trade compliance within organizations today.
“It was a lot easier when markets were homogeneous, when companies were selling to either domestic customers or buying from domestic suppliers in Canada or North America, but that of course is now becoming much more expanded into Asia, Europe, South America, and even Africa. The consequences and complexities that go with the failure to get it right are much more material in terms of dollars.”
“It’s not just about managing costs, but managing risks and in today’s just-in-time environment there is a whole lot to lose if something goes astray and doesn’t end up where it’s supposed to be at the right time”
Last year, Western Union, along with BDO, Export Development Canada, Farm Credit Canada, GHY International, CentrePort Canada and Thompson Dorfman Sweatman LLP hosted a case-study seminar focusing on importing and exporting from the Canadian market, transportation logistics, global risk, lending, legal issues, tax concerns, currency exchange and risk mitigation. The video below from this event [...]
Last year, Western Union, along with BDO, Export Development Canada, Farm Credit Canada, GHY International, CentrePort Canada and Thompson Dorfman Sweatman LLP hosted a case-study seminar focusing on importing and exporting from the Canadian market, transportation logistics, global risk, lending, legal issues, tax concerns, currency exchange and risk mitigation.
The video below from this event features Bob Cowie of GHY International speaking about the rapidly evolving state of Canada’s free trade activities in the global market and the potential risk implications that various regulatory agencies (i.e., other government departments or “OGDs”) aside from the more evident import/export concerns of the Canada Border Services Agency (CBSA) can have on import transactions.
One of the key points raised in this brief presentation is the importance of improving the scope of communication across narrowly defined functional areas within companies to ensure that the impact of business decisions are fully realized by the organization as a whole. In other words, taking the steps needed to help prevent actions taken in pursuit of a specific objective by one aspect of the business from unwittingly having international trade consequences detrimentally affecting the company’s overall bottom line (a critical deficiency of informational “silos” highlighted in the white paper A Case for An Integrated Trade Compliance Strategy).
In the example provided here, a manufacturer of animal feed seeking to gain market share ostensibly improved their product by amending its formula, unfortunately without realizing this essential change had the practical effect of impacting the tariff classification of the “new and improved” product. As a result, it went from a duty-free status to one attracting significant import duties after its formula had been altered. Most likely this unforeseen impact was never factored into the cost-benefit analysis of “improving” the product in the first place and may well have ultimately negated the profits gained from the projected sales increase.
Similar situations are routinely encountered when, for example, decisions are made to source parts or components offshore to reduce the cost of manufacture, but which could potentially affect the status of the finished product adversely for purposes of determining free trade qualification by virtue of skewing the “regional value content” or other applicable rules of origin.
As suggested in the presentation, in an increasingly globalized trade environment with a growing proliferation of complex free trade agreements, the need for an integrated approach to trade compliance is more important than ever before!
A recent article on cfo.com highlights the top risk concerns for companies in 2012 as reported by advisory group Corporate Executive Board (CEB). One of the CEB survey’s top 3 concerns is “Global expansion” and the potential impact that its associated risks may have on an organization. Also of note in the CEB survey’s list [...]
A recent article on cfo.com highlights the top risk concerns for companies in 2012 as reported by advisory group Corporate Executive Board (CEB). One of the CEB survey’s top 3 concerns is “Global expansion” and the potential impact that its associated risks may have on an organization.
Also of note in the CEB survey’s list of top concerns is that of compliance specifically related to international dealings with the regulatory regimes of foreign governments and managing the risks attached to 3rd-party relationships in the financial sector and global logistical supply chain.
If these aspects of risk management sound familiar, you may recall we have discussed these issues in our original white paper released in 2010 titled A Case for an Integrated Trade Compliance Strategy and the subsequent white paper report released in 2011, The 7 Best Practises of Leading Traders, more specifically the finding that best-in-practice globally-active companies naturally integrate foreign regulatory and trade compliance risks into their overseas planning models.
To read more of the original story click here.
(iPolitics.ca) An open letter to the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway: If we truly had global free trade and all countries enforced free competition within their respective borders, you would have the easiest job in Cabinet. Trade agreements would be a couple of pages long with signatories [...]
(iPolitics.ca)
An open letter to the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway:
If we truly had global free trade and all countries enforced free competition within their respective borders, you would have the easiest job in Cabinet. Trade agreements would be a couple of pages long with signatories committing themselves to full trade liberalization and the free movement of goods, services and people across borders.
But as you know, global free trade is far from that ideal. Progress in trade liberalization over the years has been truly impressive and Canada has benefitted greatly. But trade agreements also include hundreds of pages of exceptions, exemptions, and special cases that represent both the ambitions and the political compromises of those who precede you. Read more here.
