® 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.