Questions:
Question 1
"Looking Back" Please respond to the following:
• Focusing on the course content and assignments, discuss the single most surprising or interesting thing you learned during this course. Explain what made it so and why you were surprised or interested.
The most surprising and interesting thing that I learned during this course was the amount of resources available to help guide businesses in successful import and export operations. The BIS website alone provided a wealth of information and through additional research and the e-activities I feel that we were exposed to a vast wealth of knowledge.
• In the context of security and regulatory compliance, summarize what you have learned during this course in 50 words or less (about six sentences).
I learned that security and regulatory compliance can be challenging and that following best practices is one of the best ways to ensure success. I learned the the CBP is an agency that is heavily involved in many aspects of our nations security. Another important take-away from this class has been the importance of documentation. Documentation on both the import and export sides require strict attention to detail and it was good to learn that something as simple as a wrong INCO term can seriously effect the outcome.
Question 2
"Looking Back" Please respond to the following:
Focusing on the course content and assignments, discuss the single most surprising or interesting thing you learned during this course. Explain what made it so and why you were surprised or interested.
In the context of security and compliance, summarize what you have learned during this course in 50 words or less (about six sentences).
During this course I have learned so much, from security and compliance to INCO terms. However the single most surprising aspect that I have learned about was the concept of reimbursement importers can receive from re-exporting items that they have originally paid duties on. Of course this is a long and lengthy process, and certain criteria must be adhered to.
From a security and compliance standpoint I have learned so much. First there are many agencies involved with the compliance and security aspects, but the CBP in my opinion leads the way in this objective. This agency leverages fines and penalties for noncompliance as well as inspects cargo for deficiencies. Additionally this agency helps companies become compliant by offering sources of information on their website and assistance by phone if needed. There are programs that companies can join to show compliance one such program is the C-TPAT program. This platform allows organizations to enjoy benefits such as being exempt from stratified exams, accelerated trade processing, access to trades specialists, business resumption, as well as entry to the CBP annual trade conference. Additionally companies can conduct self-audits to ensure compliance as well as view lists of potential customers on these banned exporting lists. Finally companies must ensure that the items that they are exporting comply with mandates set by the US Department of Commerce concerning dual use items. In certain instances licenses are required for these items, the requirements are defendant upon the items mechanical characteristics, the destination, who the end user is, what the purpose of the end user is, as well as other aspects pertaining the end user according to export.gov (2012).
Reference: Export.gov. (2012, October 4). Export.gov - Dual Use Licenses. Retrieved fromhttps://www.export.gov/regulation/eg_main_018229.asp
Question 3
•As international regulations and restrictions have increased significantly since 9/11, speculate how the import / export activities in the U.S. will either increase or decrease over the next 10 years. Explain your rationale.
Overall U.S. economic performance is likely to be poor for the next 10 years if not longer. When US imports more goods and services than it exports the result is a current account deficit. If we want to prevent a snowball effect of decreased exporting and poor economic performance for the next 10 years US should finance the current account deficit, either by international borrowing (not personally recommended) or by selling more capital assets than it buys internationally. US's international equity market competitiveness has recently weakened significantly. US's global time sensitive equity market competitiveness challenge faces prompt synergistic mitigation efforts from both government agencies (implementing collaborative reforms that are practical and beneficial for all vested parties) and the private sector corporate support (engage in lobbying and cross-level training amongst its employees and active interaction with government agencies in developing mutually beneficial regulatory and security conscious reforms) to observe diligently mastery of two tenets for effective competitiveness, those being productivity and ability of the economy to compete. Linked to US's average living standards, productivity measures how the economy ‘obtains goods and services of value from labor and capital inputs it provides' (Baily & Slaughter, 2008). Equally important, US's ability of its economy to compete in international trade is measured by the continued maintenance of Americans' high standard of living by building an economy on the foundation of high-productivity firms. Aside from today's economic crisis, if US wants to get over this financial hump it may behoove it to consult with its private sector strategic partners towards developing regulatory reforms that do not undermine innovation and hampers competitiveness but rather establishes sound structural policies that account for sensitivities of global trade with trading nations, global security, and managing the delicate value of our current depreciated US dollar that currently has boosted the global competitiveness of many American companies and has created a unique opportunity to expand investment, increase skills, and add employment.
Reference: Baily, Martin N. and Slaughter Mathew J. (2008). Strengthening U.S. Competitiveness in the Global Economy. Published by Private Equity Council. Retrieved from https://www.pegcc.org/wordpress/wp-content/uploads/pec_wp_strengthening_
120908a.pdf.
•Identify any gaps you have observed in international trade policies during this course. Explain what U.S. government agency you would contact to address the gap and what recommendation you would make.
With the quickly evolving and complex business dynamics of global supply chain, multimodal transportation, third party logistics (3PL), and cultural or political contrasting agendas in play between trading countries, the private sector finds itself sometimes tied up in diplomatic incongruences with its trading nations that pose catastrophic delays and unexpected costs in that firm's efforts to effect their mission by them being forced to deviate or delay already synchronized multifaceted logistical coordinated plans of which one of the transshipment part depends on the timely delivery of the other. Case in point, a US based Chinese Broadway musical, due to its political message to the US audience, has strained relationship with China and continuously faces insurmountable challenges in keeping tailors and clothing manufacturing suppliers from Hong Kong because of the communist oppression pressed on manufacturers supporting this Broadway company from sharing its liberal views on the oppressive nature of the Chinese communist government. An international trade policy that is sensitive to the political and cultural impact of a trading nation has on our US based firm's ability to import and facilitates the cooperation of both trading nations needs to be created to avoid these similar obstacles to global trade. Agencies that can facilitate in the development of such policies could include the US embassy to the trading nation, CBP, Department of State, International Transport Workers Federation, and US Department of Homeland Security. The collective pre-emptive effort to have a policy that has eyes on this diplomatic and cultural aspect of trading as plans are developed to initiate trade with other countries will save us cost, time, and increase the trust of the private firms on the US governments' vested interest to facilitate the enablers in place to increase a smoother global trade experience and engenders a spirit of cooperation from all vested parties.
Question 4
"Looking Ahead" Please respond to the following:
• As international regulations and restrictions have increased significantly since 9/11, speculate how the import / export activities in the U.S. will either increase or decrease over the next 10 years. Explain your rationale.
I believe that import activities will increase and export activities will remain about constant. As the U.S. continues to outsource and become more reliant on foreign countries such as China and India importing of goods from these countries will increase with the reliance. I feel that export activities will remain constant because companies will continue to export but going global still presents challenges to businesses. Hopefully as technological advances continue the process will become more attractive to businesses.
• Identify any gaps you have observed in international trade policies during this course. Explain what U.S. government agency you would contact to address the gap and what recommendation you would make.
I feel that the CBP needs to take advantage of technology available. Using technology will lessen the human error and will increase efficiency.