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GlobalWatchHE EWSLETTER OF HE NTERNATIONAL MPORT XPORT NSTITUTE T N T I I -E I 11225 N. 28TH DRIVE, SUITE B 201, PHOENIX, ARIZONA USA 85029

NOVEMBER/DECEMBER 2008, V OLUME 10, ISSUE 3 European Union reacts to Sharing Global Supply the Global Financial Crisis Chain Knowledge Page 3 A quick overview of the EU’s response to the financial crisis Bureau of Industry and Security views Cabela’s The crisis that started in the US over Optical Exports a year ago has sent shock waves around Page 4 the globe. Former giants of the financial European Euro DDTC Increases world have found themselves suddenly for businesses and households and put Registration Fees facing bankruptcy. Inevitably, the crisis in place a better governance system for Page 5 is also having an effect on households the future. and businesses - economic growth has Looking ahead In-Compliance: slowed sharply and in some EU coun- 10 Reasons Compliance tries unemployment has begun to in- Amid fears of a global recession, the Programs are Unnecessary crease for the first time in several years. Commission is pressing for rapid adop- Page 6 In the EU, the turmoil has prompted tion of measures proposed in June to help action on many levels – by national gov- small businesses, which create most new The Industry Has Spoken. What did it say? ernments, the European Central Bank jobs in the EU. Page 7 and the Commission. All have been It is also asking the European Par- working closely together to protect sav- liament and the 27 EU member coun- New Certified International ings, maintain a flow of affordable credit tries to quickly adopt the proposed Freight Forwarder® EU Reaction - Continued on page 11 applauded Worldwide Page 11

i|eCanada 77th Annual Conference EU-India Free Trade Agreement hits Roadblock By Sujay Mehdudia

BRUSSELS: The prospects of Free Trade Agreement (FTA) between the European Union and India being wrapped up by the 2008-yearend deadline look very bleak with sharp differences having arisen over various issues - Intellectual Property Rights (IPR), competition, agriculture, public procurement, market access and Deputy Director General for Canada, Ministry of Foreign Affairs Mexico, Jesus Montero, transparency. addressing the main assembly at i|e Canada’s 77th Annual Conference. IIEI was the Gold EU-India FTA - Continued on page 10 Sponsor for the event held in Toronto Canada. See page 11 for additional photograph. V OLUME 10, I SSUE 3 P AGE 2

Notes from the President GlobalWatch® is a publication of The International Excitement Around the Corner Import-Export Institute Phoenix, Arizona, USA by Dr. Donald N. Burton

Executive Board Dr. Donald N. Burton Reflecting on our progress in to accommodate an Arts and Letters President, IIEI 2008, I am pleased overall with our school and a graduate school. While Dr. Gerry Bedore, Jr. successes and I recognize too the ar- all of this was going on, we also were Former President, EDMC Online eas in which we could do better. I reaccredited for the next five years see the year 2009 as being a con- by the Distance Education and Advisory Board tinuation of many of the efforts be- Training Council. And, we have Bala R. Balaraman, Director, gun in 2008. spent nearly the entire year in the Indian Institute of Export Management, I am most pleased about the in- process of seeking U.S. Department Bangalore, India creasing communication and dialog of Education approval to offer guar- Deen Rae Dell, former Logistics Manager, we have with governments around anteed student loans. (See article Tyco Electronics Power Systems, the world that now work with us to page 12). Mesquite, Texas, USA coordinate their trade compliance Even at a glance, looking at our Robert Geddeis, Director, standards with the globally-accepted list of courses offered, you can see International Sales, Greenlee Textron IIEI Certification training programs. the huge increase in courses avail- Inc., a division of Textron Corp. As a result, there are many new Rockford, Illinois, USA able. We have almost doubled the Fortunato J. Gerardo, Managing Director, courses of study now available, in- number of specialized trade compli- Filinter Group Trading Co. Ltd. cluding: Canada Export Controls ance topics being offered (See page Aurora, Ontario, Canada (IIEI-324); UK Export Controls 7), including topics with acronyms Robin Mackay, Managing Director, (IIEI-325); PRC Export Controls such as OFAC, FCPA and Export Training Ltd, Gateshead, Overview (IIEI-350) and many, many INCOTERMS. The number of Tyne and Wear, United Kingdom others are in development. All of these courses is increasing so rapidly be- Roger H. Marks, President, courses have one thing in common. cause of input from people like you International Division, H2O Plus, Inc. They are intended to help educate and companies asking for them when Chicago, Illinois, USA industry on how to comply with the they see our staff at conferences and Scott Arne Maynard, Senior Consultant increasingly strict export regulations events. If you have topics you think & Principal, Exim*trade Int’l, needed to meet each of these coun- Austin, Texas, USA we should develop into a course, let Chad A. Twitchell, Policy & Contracts tries’ national security interests. us know. If you are an expert in any Team Leader, Sandia National From the education perspective, of the new course topic areas, you Laboratories, Albuquerque, this year has been beyond incredible. may want to consider teaching for New Mexico, USA In 2008, we added the name Dunlap- us. Even though we now have well Dr. Marsha Vande Berg, Principal, Stone University (DSU) to our school over 100 faculty members, we need International Business Associates, and expanded our bachelor degree in more. San Francisco, California, USA trade management to include three So what will the year 2009 be Frank Woods, Former Director, emphasis areas: trade compliance like here at DSU? With the rapid ac- U.S. Dept. of Commerce, management, global supply chain ceptance of countries all over the Export Assistance Center, management and general manage- world of the IIEI Certification pro- Phoenix, Arizona, USA ment. We expanded our program gram, I expect that everything up un- IIEI Program Director from being a degree completion pro- til now has been a prelude. A pre- gram—where students needed to Caulyne Barron, V.P. - Online Programs lude to what we all will have to wait Dr. Gerry Bedore, Jr. - Dean of Education bring two years prior course credits and see, but one thing is for sure: It to complete their degree—to now we will be exciting year helping to edu- ® offer the full range of general educa- cate people to IIEI Certification’s GlobalWatch is published bi-monthly tion courses—so students can com- and is a registered trademark of the global standards. Thank you for plete their entire bachelor degree here International Import-Export Institute. your continued strong support and at our school. Under the DSU ban- acceptance. ner, we have added to our framework P AGE 3 V OLUME 10, I SSUE 3

Sharing Your Global Supply By Matthew B. Myers, Ph.D, University of Tennessee and Mee-Shew Cheung, Ph.D., By Sandra Halteh ag-IP-news Chain KnowledgeBy Richard— The Lambert Right Way Xavier University Reprint Courtesy IndustryWeek

Knowledge sharing between or their partners. Furthermore, in chain, each offering distinct benefits supply chain partners has today’s competitive global to buyers and suppliers: more upsides than down- marketplace, how do cross-cultural · Information sharing sides, provided that the right differences between buyers and takes place when companies ex- kind of knowledge goes back and forth sellers impact the value of change important data about sales, knowledge sharing? In order to find customer needs, market structures, In global supply chains, the answers to these questions, we and demand level managers consistently have conducted an in-depth study of · Joint sense making oc- struggled with sharing valuable more than 100 cross-national supply curs when supply chain partners knowledge with buyers and chain partnerships in the industrial work closely to solve operational suppliers across borders. Both chemicals, consumer durables, problems, analyze and discuss stra- buyers and suppliers agree that industrial packaging, toy and tegic issues, and facilitate commu- sharing knowledge among supply apparel industries in multiple nication about the relationship. chain partners will create more locations in 19 countries across · Knowledge integration efficient supply chains and more Asia, Australia, Africa, Europe, occurs when both sides develop re- effective organizations, leading to North America and South America. lationship-specific memories, pro- higher quality outputs and Knowledge sharing in global viding each party with a common enhanced customer satisfaction. supply chains goes beyond basic understanding of idiosyncratic, rou- However, some managers think that information sharing. Much of the tines and procedures governing the knowledge sharing with supply information that companies share — partnership. chain partners has a “dark side” data on inventory levels, sales, The overall results of our re- that can outweigh the benefits. production schedules and prices — search show that both buyers and Individual companies tend to be is easy to codify and transmit. Other suppliers will benefit from these wary of getting too close to one types of knowledge are more knowledge-sharing activities, but another for fear of losing control, difficult to codify but proven to be suppliers generally benefit more compromising trade secrets, more valuable: know-how, than buyers. Why is this so? Be- proprietary information, and even managerial and communication skills cause the predominance of de- losing revenue and competitive and organizational memory. Inter- mand-driven supply chains in edge. It may even lock firms into firm knowledge sharing is a joint today’s global marketplace, and the unproductive relationships or activity between supply-chain fact that suppliers are further away preclude partnering with other partners in which every party strives in the supply chain node from the viable firms. In this way, a firm’s to create more value together than final point of sale. Increased global collaborative relationships with its they would be able to create competition also has forced supply supply chain partners can become individually. It involves the parties chain managers to strengthen their a source of both opportunities and sharing knowledge and then jointly agility and adaptability and to tie constraints. interpreting and integrating it into a their planning and operations as Increasingly, talk of the “dark relationship-domain-specific closely as possible to real-time cus- side” of collaborative relationships memory that influences relationship- tomer needs. As a result, the has left managers wondering who specific behavior. We found three knowledge that buyers share with benefits most from knowledge- different dimensions of knowledge- sharing activities: their companies sharing activities within the supply Sharing - Continued on page 9 V OLUME 10, I SSUE 3 P AGE 4

BIS Update Bureau of Industry and Security

American Rice Settles Nebraska Outdoor Equipment California Semiconductor Antiboycott Charges Outfitter, Cabela’s Incorporated, Company Settles Charges Settles Export Allegations The U.S. Department of Commerce’s BIS announced that Cabela’s BIS stated that Maxim Inte- Bureau of Industry and Security (BIS) revealed that American Rice, Inc. of Incorporated, an outdoor grated Products, Inc., a semicon- Houston, TX, has agreed to pay a equipment outfitter based in Sidney, ductor manufacturer based in $30,000 civil penalty to settle allega- Nebraska, has Sunnyvale, CA, has agreed to pay tions that it violated the antiboycott agreed to pay a a $192,000 civil penalty to settle provisions of the Export Administra- civil penalty of 152 allegations that it committed 34 vio- tion Regulations (EAR). $680,000 to settle violations lations of the EAR involving the “The Department of Commerce is committed to vigorous enforce- allegations that it export and reexport of national ment of the antiboycott regulations,” committed 152 violations of the security-controlled integrated cir- Darryl W. Jackson, Assistant Secre- EAR involving the export of cuits and related components to the tary of Commerce for Export En- controlled optical sighting devices to People’s Republic of China, Esto- forcement, reminded U.S. companies. various countries worldwide. nia, Russia, and the Ukraine as well “To avoid enforcement actions, com- The allegations involved 76 as deemed export violations involv- panies should establish effective com- ing Iranian and Chinese nationals. pliance programs that include such exports of optical sighting devices core elements as management com- for firearms in 2004 and 2005 to Three of the 34 charges involve mitment, employee training and inter- Argentina, Brazil, Canada, Chile, deemed export violations, includ- nal controls for reporting and re- Finland, Ireland, Malaysia, Malta, ing one knowing deemed export sponding to boycott issues.” Mexico, Pakistan, the Philippines, violation, when Maxim released BIS’s Office of Antiboycott South Africa, Sweden, and Taiwan. controlled technology for the de- Compliance alleged that during the These devices are controlled on the velopment of electronic compo- years 2002 through 2006, in connec- tion with fifteen transactions involv- Commerce Control List for crime nents to an Iranian-national em- ing the sale of U.S. origin goods to control and firearms convention ployee and Chinese-national em- the U.A.E., American Rice, Inc. failed reasons and require a license to ployee without the required BIS li- to report in a timely manner its re- export to the various destinations at censes. Maxim applied for a ceipt of a request to engage in a re- issue. BIS also alleged that deemed export license for release strictive trade practice or boycott. Cabela’s failed to file the required of controlled technology to the Shipper’s Export Declaration for Chinese national, but failed to re- each of the 76 exports in question. strict his access to the technology In 2005, Cabela’s settled with the license application was similar allegations made by BIS under review. that, on 685 occasions between The other 31 charges stemmed April 1999 and September 2000, from unlicensed exports and reex- BIS Update 2008 Note Cabela’s made unlicensed exports ports of national security-controlled Of the 1,100+ who attended the of optical sighting devices to a integrated circuits and related com- conference, there were 84 pin- wearing Certified U.S. Export number of countries, including ponents made between June 2002 Compliance Officers®, represent- Argentina, Brazil, Canada, Chile, and September 2005 to the ing nearly that many companies, and another 122 people currently and Mexico. People’s Republic of China, Esto- enrolled in classes. Over 20% of Source: http://www.bis.doc.gov/news/ nia, Russia, and the Ukraine. those in attendance were IIEI stu- 2008/bis_press11072008.htm dents and alumni. Well done! P AGE 5VOLUME 10, I SSUE 3 DDTC Update DDTC Increases Directorate of Defense Trade Controls Registration Fee Effective November 1, 2008, to Did you Know Did you Know align registration fees with the cost Form DSP-83, Non-Transfer The applicant must seek written con- of licensing, compliance and other and Use Certificate. In any in- firmation from the foreign purchaser related activities, the Directorate of stance when a copy of a Form DSP- before applying for a license from Defense Trade Controls (DDTC) adopted a three-tier registration fee 83 is provided to support an export DDTC. The license application on schedule. application on D-Trade, the appli- D-Trade must include from the for- The first tier will be a set fee cant must retain the original of the eign customers a written statement regarding the specific end-user and of $2,250 per year for registrants DSP-83, regardless of the final out- end use. who are renewing a registration, come of the request (approval, de- Source: http://pmddtc.state.gov/DTRADE/ required to register by law, and for nial, return without action) and it documents/ whom DDTC has not reviewed, ad- must be made available to DDTC DTrade_DSP_5_Instructions.pdf judicated or issued a response to immediately upon request. Foreign National Employment any applications during the twelve- month period ending 90 days prior A DSP-5 must be approved by to the expiration of their current DDTC before any foreign national DDTC Response Team employed in the United States can registration. This tier includes those have access to ITAR controlled tech- registering with the Department for Contact Information: Phone: nical data. Specific guidelines for the first time. (202) 663-1282 E-mail: completion of these requests are pro- The second tier is for registrants [email protected] vided on the DDTC Web site. for whom DDTC has reviewed, adjudicated or issued a response to Validity Period 500 Pound Gorilla between one and ten applications For those “in the business” with a What makes people refer to IIEI’s during the twelve-month period end- Current Registration compliance education program ing 90 days prior to the expiration as the 500 Pound Gorilla? The period of validity for new of theirNon-U.S. current Companies registration. Learn For this IIEI is the worldwide market tier,Critical registrants U.S. Regulation will pay a set Issues fee of and renewal registrants is twelve leader in providing compliance months from the date of issuance. education to thousands of stu- $2,750 per year. The expiration date is included in the dents online. Call today to find out The third tier is for registrants more. (800) 474-8013 or outside registration letter issued by DDTC. the U.S. 1+602-648-5750. for whom DDTC has reviewed, ad- For registration renewal, regis- judicated or issued a response to trants are responsible for ensuring more than ten applications during sufficient time is allocated for re- the twelve month period ending 90 newal purposes, but no sooner than days prior to the expiration of their 60 days prior to expiration. current registration. For this tier, In the event a registrant allows registrants will pay a fee of $2,750 their registration to expire, the reg- plus an additional fee that is based istrant is soley responsible for en- on the number of applications for suring that no export or temporary How can this emblem which DDTC has reviewed, adju- import occurs until the registration impact your career? dicated or issued a response during is issued by DDTC. Registration will the twelve months ending 90-days not be backdated to cover the pe- You owe it to yourself prior to the expiration of their cur- riod of expiration. Back fees are to find out how and why! rent registration. The additional fee required nevertheless. CALL a Certification will be determined by multiplying Refer to Federal Register No- Advisor Today tice date July 18th, 2008 1-800-474-8013 Fee Increase - Continued on page 10 V OLUME 10, I SSUE 3 P AGE 6 In Compliance.... 10 Reasons Trade Compliance Programs Are Unnecessary By Rick Miller Tyler Search Consultants www.tylersearch.com

Companies of all sizes in all indus- 4. Any product purchased in the me off the hook because I was tries struggle with trade compliance U.S. is U.S.-origin. good most of the time? Where is programs and the trade compliance The trade deficit must come my duffle bag? role. There are many reasons why from somewhere … make sure you 9. C-TPAT is not mandatory, so a compliance program is controver- ask before you assume. Get it in we aren’t spending any money sial. Here are the top 10 reasons writing and then ask again. or dedicating any resources to why a trade compliance program is 5. Any U.S.-origin product is it. truly an unnecessary waste of re- NAFTA-eligible Sure it is not mandatory, but sources: Unless you are audited, of don’t come crying to trade compli- 1. Trade compliance is a cost course. The NAFTA rules of origin ance when the borders tighten up center with no financial benefit are complex and vary tremendously and your non–C-TPAT shipments to the company. depending on the item. The value are delayed while all C-TPAT im- Except for avoiding audits, pen- of U.S. components may or may porters are given a priority. alties and border delays. Except for not have anything to do with eligi- 10. Compliance slows deliver- avoiding duty under special pro- bility — even with 99 percent U.S. ies. grams such as the North American components. When importing under Noncompliant importers will Free Trade Agreement, the Central NAFTA, every compliance profes- face many more inspections and America Free Trade Agreement, sional needs to verify the supplier’s delays, especially after Customs the Generalized System of Prefer- certificate of origin. Ask and ask finds the first problem. Due to lim- ences. Except for tariff engineer- again. ited resources, Customs targets the ing, broker management, supplier 6. We have been doing business bad guys. Even compliant import- management. for years without worrying about ers face delays, but if Customs al- 2. Classification is easy. Anyone Customs. ready knows your company has a can do it — just pick the lowest Ever notice that all the big pen- trade compliance program, they are duty rate and let Customs tell alty cases in the news are for com- more likely to work with you. us if we’re wrong. panies that have been around for a While failure to maintain a vi- Until Customs catches you and while? able trade compliance program may sends you a bill for the duty (plus 7. Our customs brokers and sound funny, border delays, inspec- interest) for all entries made over freight forwarders are respon- tions, audits and penalties are not. the last five years. And don’t for- sible for compliance Trade compliance and supply chain get the penalty that’s sure to fol- Importers of record for imports security is more then a fact of busi- low. and U.S. principal parties of inter- ness life today. Our world has est for exports are on the hook not changed. It’s here to stay. Work 3. Shipments to and from closely with your trade compliance Canada and Mexico are not re- the broker or forwarder — period! Ever look at the liability limitations team. Top down support is the criti- ally imports/exports. cal component for a successful Tell that to U.S. Customs. on your broker and/or forwarder agreements? trade compliance program. Canada and Mexico may be our big- About the Author gest trading partners, but they have 8. We need to make exceptions Rick Miller is a licensed customs bro- their own customs services to deal for big customers or we’ll lose ker and director of trade compliance with. And, oh yeah, those folks at the business. recruitment at executive recruiter Tyler Commerce may require an export So if I walk past the bank ev- Search Consultants. He can be con- license. ery day on my way to work and tacted at [email protected]. only rob it once, the judge will let (201) 934-4084 P AGE 7 V OLUME 10, I SSUE 3 Special Topic International Trade The Industry Has Spoken Regulation Courses In addition to IIEI’s regular If the number of Certified U.S. staff members to possess this impor- course offerings such as EAR and Export Compliance Officers® tant certification. This number is in- ITAR, there are several online (CUSECO) who attended the re- creasing rapidly as word of mouth trade compliance courses starting cent BIS Update 2008 is any indi- about the value of the program soon at the International Import- cation of the market approval of the spreads. Nearly all of the top 100 Export Institute that may be of in- International Import-Export U.S. aerospace and defense com- terest to you.

Institute’s certification training pro- panies and well over 1,000 compa- • Dec 18: Foreign Corrupt Practices Act gram for trade compliance profes- nies worldwide have had employees • Jan 15: Canadian Export Controls • Jan 22: PRC Export Controls sionals, then the market has over- enroll in courses leading to industry • Feb 26: UK Export Controls whelmingly decided. Eighty-four certification. And the number of glo- individuals proudly wore their la- bal companies participating has sky- If you don’t see the topic pel pins during the three day event. rocketed during the past year. What you’re looking for, call an advisor In addition, more than 122 stu- does all this mean? It appears to be to find out when it is running. Spe- dents currently enrolled in the clear evidence that the industry has cial courses are only offered a few CUSECO training program decided that the Certified U.S. Ex- times throughout the year. Also stopped by our booth to say “hi”. port Compliance Officer® program remember, the IIEI’s courses are That means that nearly 20% of is valuable in meeting the needs of accredited college credit that fo- those attending the BIS conference industry and individuals. It is also an cus on providing you with practi- have earned the prestigious certifi- indication that companies subject to cal skills and knowledge useful to cation or are in classes preparing the ITAR and EAR are eager to have industry professionals. For infor- for the challenging 4 hour exami- independent third-party validation mation about these or other nations that must be passed to earn that their employees meet the indus- courses, call an advisor at (800) the right to call themselves a Certi- try accepted standard of knowledge 474-8013. fied U.S. Export Compliance and proficiency with the regulations. Officer®. Nearly of of these re- “It is a very challenging program,” Tell me about IIEI’s Online ceived their training through DSU said Russ Stewart, a member of the and IIEI. Management Team at Hamilton Program and its Students Rick Miller with Tyler Search Sundstrand. “Having the certification Consultants, one of the premier re- definitely helped me stand out dur- IIEI’s online program was de- cruiters of compliance profession- ing the hiring process even though I veloped with two key points in als in the nation, made comment had been in compliance for years, but mind. Learning had to be possible after the BIS Update 2008 that he once I was hired, the knowledge I and convenient for very busy pro- saw the easily identified CUSECO learned in the program helped me fessionals with limited time to de- lapel pins everywhere during the excel.” vote, and second, what was being conference. This did not surprise For information about certifica- taught had to be clear and concise, him, he said, because he is seeing tion training and what it can mean to with a well designed path to impart an increasing number of individu- you, talk to a professional wearing the knowledge. The IIEI’s online als that Tyler Search places as hav- the impressive CUSECO pin at the virtual campus and classrooms meet all these requirements and ing the certification as a require- next conference you attend, or visit more. It is open 24/7, which makes ment. The IIEI has learned that 18 IIEI’s web site at www.dunlap- it ideal for student’s busy lives. But of the larger aerospace and defense stone.edu or call an IIEI Advisor at who is our typical online student? companies, or divisions within them, (800) 474-8013. now require all of the compliance IIEI Program and Students - Continued on page 12 V OLUME 10, I SSUE 3 P AGE 8

Country Profile South Korea Republic of at a Glance South Korea GDP: $1.206 trillion (2007 est.) GDP - real growth rate: 5% (2007 est.) GDP - per capita (PPP): $25,000 (2007 South Korea, officially the division, South Korea was est.) Republic of Korea and often referred established in 1948 and has since Inflation Rate: 2.5% (2007 est.) to as Korea is a presidential republic developed a successful Labor Force: 24.22 million (2007 est.) in East Asia, occupying the southern democracy, maintaining a strong Unemployment Rate: 3.3% (2007 est.) half of the Korean Peninsula, it is alliance with the United States and Population: 48,379,392 (July 2008 mostly hills and mountains; wide its allies. South Korea is now est.) coastal plains in west and south. Its working towards a peaceful Exports: $379 billion f.o.b. (2007 est.) climate is temperate, with rainfall reunification with North Korea. Exports - Commodities: semiconduc- heavier in summer than winter tors, wireless telecommunications South Korea is a major equipment, motor vehicles, computers, Also known as the “Land of the economic power and one of the steel, ships, petrochemicals Morning Calm,” it is neighbored by Exports - Markets: China 26.2%, US wealthiest countries in Asia. It had 12.4%, Japan 6.9%, Taiwan 4.1% China to the west, Japan to the east one of the world’s fastest growing (2007) and borders North Korea to the economies since the 1960s, now Imports: $349.6 billion f.o.b. (2007 est.) north. South Korea’s capital and highly developed and the fourth Import - Commodities: machinery, largest city is Seoul, the second largest in Asia and 13th largest in electronics and electronic equipment, oil, steel, transport equipment, organic largest metropolitan city in the world. the world. Forming the G20 chemicals, plastics Korea is one of the oldest industrial nations and the world’s Import - Markets: China 16.9%, Japan continuing civilizations in the world, top ten exporters, it is an APEC 16.3%, US 10.4%, Saudi Arabia 6.2% and OECD member, defined as a (2007) founded in 2333 BC by the legendary Foreign Exchange Rate: South Korean Dangun according to Samguk Yusa. High Income Nation by the World won per US dollar - 929.2 (2007) The Korean Peninsula was first Bank and an Advanced Economy Internet Users: 35.59 million (2007) inhabited as early as the Lower by the International Monetary Internet Hosts: 315,537 (2007) Paleolithic. Following the unification Fund. It has the world’s sixth of the Three Korean Kingdoms largest armed forces and the tenth Source: CIA World Fact Book under Silla in AD 668, Korea went largest defense budget in the through the Goryeo and Joseon world. The Asian Tiger, as it is electronics, semiconductors, LCD Dynasty as one nation until the end called, is leading the next eleven displays, computers and mobile of the Korean Empire in 1910. After nations and is still among the phones, led by Samsung and LG. world’s fastest growing developed Home of the world’s third largest countries. Today, its success story steel producer, POSCO, it is the is known as the “Miracle on the world’s largest shipbuilder, the Han River,” a role model for many world’s fourth largest oil refiner developing countries. and one of the world’s top five South Korea is leading several automobile producers, headed by key industries in the world, Hyundai and Kia. It is also a particularly in the fields of science leading country in biotechnology, and technology. It has a very construction, engineering, advanced and modern machinery, petrochemicals, infrastructure and is a world leader robotics and textiles. in information technology such as P AGE 9 V OLUME 10, I SSUE 3 Sharing - Continued from page 3 ances would impact the propensity other global managers than with to share knowledge and other valu- those of their own countries of ori- suppliers becomes more valuable. able resources between cross-bor- gin. This seems to explain that man- When the benefit pie turns out to der business partners. Interviews agers’ decisions about whether to be unequal size between buyers and with managers revealed the reasons share knowledge — and how to do suppliers, problems can emerge. If of the new findings. In business-to- it — are driven less by cultural managers see relative gains as more business settings, we are seeing a norms and more by objective busi- important than absolute gains, it can decrease in the influence of culture ness decision making and market undermine long-term cooperation as it traditionally is perceived and demands. within supply chains. There is a say- an increase in ‘cultural overlaps’ as In the competitive landscape of ing that, in the global marketplace, human resource elements within the global supply chains, knowledge companies don’t compete — sup- firm become more diverse, and the sharing between buyers and sup- ply chains do. A company may not firms themselves operate in more pliers has become increasingly criti- benefit as much from knowledge- markets in the global setting. Re- cal. As concluded by a top execu- sharing activities as its partners. But cent research also has found that one tive in our interviews, “Even though in absolute terms, its performance of the major effects of globalization it is often hard to quantify the ac- will be enhanced significantly. With- is the creation of a new identifiable tual size of the pie gained by each out participation from both sides, class of managers who belong to an individual party, both sides have to knowledge sharing would not take emergent global culture, especially look at the ultimate picture and be place, and the entire supply chain in business markets. more in sync.... Businesses are suffers. As membership in this new glo- constantly looking for best practice Suppliers need to be willing to bal culture rises, many critics find a and best thinking. We have to put address the problem proactively distinct threat to national cultures, our cultural differences aside.” when tension arises due to the real resulting quite possibly in their even- Companies need to approach or perceived disproportional ben- tual obsolescence. In the manage- knowledge sharing with their glo- efits on their part. They could dem- ment of MNCs (multi-national com- bal supply chain partners construc- onstrate goodwill to the buyers who panies), it is common to find an in- tively in order to make their supply are more collaborative in knowl- creasing number of managers who chains more competitive. edge sharing. For example, suppli- describe themselves as bi-cultural ers could offer support for custom- or multi-cultural. More and more, About the Authors ers’ R&D programs, grant discounts MNCs are managed by multi-cul- or preferred customer status, or be Matthew B. Myers, Ph.D. is Asso- tural expatriates. This group of man- ciate Professor and Interim Head, more generous in the division of agers is adept at cross-cultural code Department of Marketing and Logis- profits with their customers. tics, Nestle USA Professor of Market- switching and modification of their Through this revised “pie-sharing,” ing, and Director, Global Business In- behavior to accommodate different stitute, the University of Tennessee. both buyers and suppliers would cultural norms for appropriate be- Mee-Shew Cheung, Ph.D. is Assistant ultimately benefit through the Professor, Department of Marketing, havior in cross-cultural scenarios. strengthening of the knowledge O’Conor Research Fellow, Williams This shows a trend that implies a College of Business, Xavier Univer- sharing efforts from both sides. ‘cross-vergence’ of cultures where sity. One of the more interesting the influence of societal values and findings in our research is that Reprint courtesy IndustryWeek economic ideology combine to pro- cross-national cultural differences duce a value system significantly A complimentary subscription to between buyers and suppliers rarely IndustryWeek magazine is available to disparate from traditional national those who qualify. Fill out our online form matter when it comes to knowledge cultures. Thus, globalization leads to at http://www.submag.com/sub/ sharing. This is against traditional iy?pk=W0105. Distribution and use of this significant cultural cross-pollination, wisdom in which we had assumed material are governed by copyright law. and global managers tend to have Copyright© 1998-2008 Penton Media, Inc. that national culture and all of its nu- values that are more in common with All rights reserved V OLUME 10, I SSUE 3 P AGE 10 Want a Bachelor Degree Fee Increase - Continued from page 5 in Management ? Lacey Act $250 times the number of applica- U.S. Law Enacted Soon Finished your certification tions for which DDTC has re- viewed, adjudicated or issued a re- classes, but want more? Why not On May 22, 2008, the Lacey finish your bachelors degree using sponse during the twelve-month the credits you earned in gaining Act was amended to make it illegal period ending 90 days prior to the your certification and dust off those to import, export, transport, sell, re- expiration of the current registra- college credits earned decades ago. ceive, acquire, or purchase in inter- tion. Find out how you can also gain cred- state or foreign Fees for registrants in this third its from your job experience and commerce, any more. Call an advisor today to get tier whose total registration fee the details. (800) 474-8013 plant—with limited The statute’s would be greater than 3% of the exceptions—to be reach now total value of applications for which taken or traded in has broader DDTC has reviewed, adjudicated EU-India FTA - Continued from page 1 violation of do- range or issued a response during the 12- Although both sides have stated mestic or interna- month period ending 90 days prior that good progress had been made tional laws. to expiration of the current regis- in the first three rounds, officials in The Act extends the statute’s tration will be reduced to 3% of the 27-member block European reach to include a broader range of such total application value or Union feel that signing of the FTA plants and plant products, including $2,750, whichever is greater. Fees by this year-end was near timber deriving from illegally har- for registrants, including universi- impossible. vested plants. Illegal logging robs ties, who are exempt from income Both India and EU were to countries, destroys forests, and taxation pursuant to 26 U.S.C. § present their proposals last month competes with the legal production 501(c)(3) may be reduced to the but that was postponed for the time and trade. This Act provides the le- first-tier registration fee provided being and efforts are on to set a new proof of such status (i.e., IRS cer- gal authority to take action when date sometime in April to get down tification) is submitted with their products stemming from the prac- to the task of sorting out differences registration package. tice of illegal logging enter the United in major issues. Source: http://pmddtc.state.gov/ States. registration/fee.html The Act now requires an import Rising Trade declaration for plants that includes Certification Board The European Commission has the scientific name of any plant, a sought addressing of issues such as description of the value, quantity, of Governors competition policy, the rights of and the name of the country from Over the next few months, you foreign investors, open government where the plant was taken. If a plant will see the name of the Certification purchasing practices as well as species or country of origin cannot Board of Governors (CBG) slowly environmental, social and human be determined, the plant declaration changing on the web site and in mar- rights clauses. must include a list of possible plant keting materials to reflect a new The EU-India trade has been species found in the product or a branding identity. In a move to bet- ter reflect the ever changing role of on the rise in recent years and from list of possible countries from which the plant originated. the organization, the CBG’s name 28 billion euro in 2003, it has has changed to the IIEI Certification reached 55 billion euro in 2006-07, APHIS and the other Federal Advisory Board (CAB). Because of registering a steady growth. agencies involved in enforcing the the expanded reach of the IIEI certi- provisions in the Act are working Editor’s Note: There are major fication programs into over 90 coun- together to phase in enforcement of tries and with the numerous new factions in both the EU and India the declaration beginning April country specific certifications due that are not in favor of this FTA. 2009. out early in 2009, the IIEI outreach program required a focused brand- Source: The Hindu ing identity. P AGE 11 V OLUME 10, I SSUE 3

EU Reaction - Continued from page 1 Certified International Freight Forwarder ® directive on capital requirements announced at major conference in Canada for financial institutions, aimed at reining in excessive risk-taking by banks and improving supervision of Toronto, Canada With the world,” added Dr. Burton. “It is banks that operate in different EU oldest and most respected inter- intended for those in the freight countries. national trade conference in handling sector who help facilitate The Commission is drawing up Canada, i|eCanada, as the the movement of goods between proposals for stricter regulation of backdrop, Dr. Donald Burton, nations.” credit rating agencies. These agen- President of the International Im- The knowledge requirements cies advise investors on how safe port-Export Institute (IIEI), an- for this certification include the investments are, but they failed to nounced to a huge applause the material contained in the follow- spot some of the risks that led to newest certification to its lineup ing four courses of study that can the current crisis. of international trade designa- be obtained from select IIEI Ap- A comprehensive plan to help tions: the Certified Interna- proved Education Providers ® the EU economy recover from the tional Freight Forwarder worldwide, or online from the ® crisis is also being prepared. It is (CIFF ) IIEI. ® due out on 26 November and will “The prestigious CIFF was ♦ Freight Forwarding developed,” said Dr. Burton, “in Practices (IIEI-127) include short-term measures. At the ♦ partnership with schools and Exporting Importing same time, the Commission has Environment (IIEI-201) also made a commitment to drive training centers around the world. ♦ Incoterms (IIEI-141) European coordination, to work They told us they wanted a cer- ♦ Documentation for the Global Village (IIEI-225) tirelessly to improve global coop- tification focusing specifically on eration and to apply EU law with the basic needs of the freight for- For more information, contact the maximum flexibility. warding industry sector.” Based your local certification education The EU Commission has low- on comments from major play- or training provider; or ered its economic forecast, pro- ers in the global supply chain, this Call an IIEI Advisor at jecting a sharp drop in EU growth is expected to be one of the most (800) 474-8013 popular certifications around the Outside the U.S. in 2008 and almost no growth for 1+602-648-5750 2009 before a gradual recovery in 2010, as the financial crisis takes a toll on the 27-nation bloc. i|e Canada At right: Dr. Donald Burton talking with Carlos Pujalte, Consul General of Mexico Source: http://ec.europa.eu/ to Canada and Daniela Gil Sevilla, commission_barroso/president/ Mexico Consular Services, during the focus/credit_crunch/index_en.htm VIP session at the i|e Canada 77th An- nual Conference in Toronto Canada the last week of October 2008.

Visit www.usexportcompliance.com ALL of the top 50 U.S. aerospace and defense companies have enrolled employees in courses leading to industry certification. V OLUME 10, I SSUE 3 P AGE 12 IIEI Program and Students - Dunlap-Stone University Continued from page 7 Honor - Distinction - Excellence Our students range in age from their late 20s to mid-to-late 50s with Update on Guaranteed Spring Semester a mean age of 36. The ratio of men Student Loans New Degree Program to women is 50-50. Fifty-eight per- Great news for students need- Starts January 8th cent of students currently work in the aerospace or defense industries ing assistance with the rising cost New General Education Classes of higher education: DSU and IIEI and have between 5 and 20 years In an effort to help our students are on track to offer Guaranteed industry experience; 23% work in achieve all of their educational Students Loan—Title IV Federal logistics companies and have 3 to 8 goals, DSU is proud to offer the or more years experience; while 3% Financial Aid to students who following new general education are retraining for opportunities in in- qualify as early as August 2009 for ternational trade. The remaining the 2008 – 2009 academic year. courses this Spring term. Under- graduate students complete general 16% are currently employed in a We are in the final leg of the ap- wide range of positions other than proval process with the Department education coursework to meet DSU’s mandate that the breadth and aerospace and defense but within of Education, after two plus years the international trade arena, often of bureaucratic red-tape. We ap- depth of knowledge and viewpoints is the hallmark of a college educa- in support of importing roles in large preciate your patience as we work and small retail merchandisers. Sev- towards the end result. tion. Jan 8: Introduction to Business Writing enty-nine percent of our students For eligible students entering or Jan 8: Information Systems initially were seeking education and continuing in any of our degree pro- Jan 15: Shakespeare I training for one of the certifications Feb 19: Human Resource Management grams, this approval will make two Feb 26: Introduction to Anthropology we offer and 21% enroll directly in major types of aid available: Pell Apr 2: Legal Environment of Business one of our degree programs. Eigh- Apr 9: Introduction to American Grants, and Stafford/PLUS Loans. Government teen percent of our degree program All will be need-based, and will re- April 9: Introduction to the Short Story students matriculate after having quire students to complete the req- completed courses for a certifica- Beginning in the 2009 Sum- uisite application in the form of the tion. The average certification stu- mer and Fall terms, we will also FAFSA. Once we are approved, dent enrolls in 5.4 classes per year be offering: you will see our name available in the first year and 2.3 classes each the online FAFSA application. • Introduction to Humanities year thereafter. Our degree students Students interested in receiving • Introduction to Mathematics average 7.2 - 8 classes per year. • Introduction to Global Communication Students spend an average of 7 aid from these programs should • History: The Revolutionary War ® to 10 hours per week (some spend keep watching GlobalWatch for • Introduction to Religion • Introduction to Theatre History more) completing requirements of information on how to navigate the an average class. Because a stu- process. You can also speak with Contact your degree advisor today dent can literally tailor their involve- to enroll in these or other general an advisor at (800) 474-8013. ment, even to late at night after the education classes. children are in bed and things calm down, it fits into their schedule. Typi- Tuition Increase January 2009 cally, a day may see the student en- Effective January 1, 2009 all rate per undergraduate credit hour ter the online classroom for 10-15 3.0 credit hour undergraduate will be $295. Course tuition prepaid minutes in the morning before going courses will be $885.00. This before January 1st for classes start- to work, perhaps visit the material means that general degree courses ing after that date will be at the cur- or classroom briefly during lunch will increase from $845 to $885 rent reduced rate. For questions re- and then perhaps spend an hour or tuition, which is an increase of garding this increase, pleace contact more in the evening or night writing $13.33 per credit hour. As a result your counselor or advisor. papers and discussing topics online. of this change, the effective tuition P AGE 13 V OLUME 10, I SSUE 3 IIEI Certifications Reward Posted Did you know that if you wear Congratulations to the following on successful completion ® and recent award of the respective certifications. your CUSECO pin to conferences and we see you, you will be given Certified Exporter® a very nice reward? Display your pin at the next event we sponsor Shiqing Bi – NV or attend and receive your re- Jose Camacho – CA ward. It’s that simple. Certified U.S. Export Compliance Officer® Marie Aimee – FL Patti Mann – ID Kati Babinec – OR Belinda Martin – MO Anne Ceschin – WI Kaori McCoy – WA Fall 2008 Mike Councill – AZ Michelle Moon – MI Ernest Galanes – CA Alecia Rice – OK Graduates Mery Jones-Prout – FL The following students graduated in the ® Certified International Trade Documentation Specialist Fall 2008 term, earning their Bachelor Pablo Quizhpi – FL of Science in International Trade Man- agement: Disclaimer: IIEI Certification credential testing is separate from Dunlap-Stone Uni- versity and the International Import-Export Institute. Distance Education and Train- Cathy Forgey – Summa Cum Laude ing Council (DETC) accreditation does not cover such certification. All courses - Trade Compliance Management offered by DSU/IIEI that help prepare individuals for IIEI Certification testing are accredited by DETC. Beanetta Roberts – Dual Emphasis Areas: Trade Compliance and Global Reminder to Students: Graduating Soon? Supply Chain Management Holiday Class If you are within three classes of Break Sue MacDonald-Nans – Summa graduating, you should contact the Dec 24th 2008 Cum Laude - Trade Compliance Manage- Registrar’s Office and have them do ment to Jan 7th 2009 a degree audit to ensure that you have Congratulations and well done met all the degree requirements. Classes resume January 8 from the faculty and staff.

Student Honor Roll The students shown here have demonstrated outstanding “A” performance for two Honor - Distinction - Excellence or more consecutive semesters.

Michael Allen – TX Gail Frisby – CA Dana Madhu – TX Kirk Robbins – CO Jan Allmeyer – MO Aurora Grimal – FL Lisa Maldonado – TX Robyne Roberts – FL Poonam Arora – KS Kim Gurski – MD Patti Mann – ID Robert Rovinski – FL Donnie Barnes – SC Elizabeth Hancock – VA Hattie Manning – TX Luciano Saccani – CA Heather Beresford – TX Alison Harris – AZ Ken May – TX Mani Sanchez – CA David Bowman – MI Julie Hawley – TX Rita McCabe – NH Kallie Smith – TX Leslie Boyd – OK Claire Hoberecht – WA Michelle Moon – MI Stephanie Smith – TX Robert Bromley – FL Henry Isenberg – WA Anthony Munguia – TX Mark Spiegel – CA Barbara Brown – MI Brett Johnson – AZ Bill Munley – VA Tamara Sprinkle – CA Jennifer Brown – VA Nathan Johnston – CA Angie Nelson – WI Les Stearns – FL Paul Burroughs – OK Lisa Kelly – PA Harry Nelson – CA Russ Stewart – CT Kandis Chocek – OR Patricia Kimm – AL Terry Nesbit – KS Toni Stivers – CA George Clark – KS Ji Kinnear – CA Laurie Phelan – Canada Elizabeth Suiter – CA Holly Clarke – Canada Lucina Lara – CA Patience Ramsey – CO Erik Thomsen – WA Kendra Cook – VA Mersad Livadic – MI Paul Rasoletti – MI Darlene Torres – WA David Dean – IA Diane Lobb – WA Ana Ratzlaff – NC Marianne Vega – TX Susan Fernandez – FL Katie Lynch – CT Kelly Raymond – AZ Mary Jean Walters – AZ Kate Fraser – MI Congratulations! Shallyn Williams – IL The International Import-Export Institute at Dunlap-Stone University

11225 North 28th Drive, Suite B-201 Phoenix, Arizona USA 85029 Phone: (800) 474-8013 Outside U.S. (602) 648-5750 Fax: (602) 648-5755 Email: [email protected] Visit us Online at: http://www.dunlap-stone.edu Sign up for your FREE email subscription to GlobalWatch® today!

D Dunlap-Stone University’s S International Import-Export Institute

Bachelor of Science in International Trade Management Program Choose one of these Emphasis Areas Global Supply Chain Management Trade Compliance Management New General Management Enroll today New Semester Great careers don’t just happen, Starting Soon! they are planned! Accreditation

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Visit our Website at www.dunlap-stone.edu or Call (800) 474-8013 - Outside the U.S. 01-602-648-5750