The Shady Side of Subnational Diplomacy
14/10/24 09:40
Spotlights are focusing on the shady side of #SubnationalDiplomacy influence during US elections. This evil twin of a transparent and productive form of local-to-local commercial engagement lays traps among unsuspecting state and local elected officials (see below). The effect is pronounced during too-close-to-call elections. Longer term, it erodes the economic health of institutes, research centers, and communities by simplifying theft of intellectual property and cyber incursions.
Trade and investment accords between local governments and institutions abound on the sunny side of the street, underpinning national-level trade agreements and fortifying local economies. I discussed these beneficial accords in a recent address to Southern California business leaders, and cautioned them against dubious and insidious influence peddling that targets locally elected officials and ultimately weakens the economic resolve of communities.
"Recently, foreign governments have increasingly used cutouts to circumvent U.S. lobbying laws and contact state-level officials directly," stated an excellent article in Foreign Policy. Recent newsworthy skullduggery involving foreign players infiltrating the functions and campaigns of trusted public officials in New York, New Jersey, Tennessee, California, and New York City illustrates how porous the barriers can be against such influence in local jurisdictions.
Foreign representatives act locally to advance their causes — or thwart that of their political opponents — in most unexpected ways, under the guise of delivering foreign investment wins in the hyper-competitive world of economic development. Contact details for such agents may include the terms Institutes, Cultural Societies, or Sovereign Wealth Funds.
Also slipping through these porous barriers are cyber criminals who take aim at highly prized intellectual property conceived and formed by US research and development facilities. When I was stationed at the US Embassy in Bucharest as Commercial Officer, I teamed with US Department of Justice colleagues to elucidate these vulnerabilities to the country's leading research arms, supported by the Federal Bureau of Investigation's anticorruption arms. Statistics on the damage done report losses to national economies in the hundreds of billions.
Leaders of research facilities, local and state elected officials, and industry regulators must remain hyper-vigilant against such incursions under the guise of new partnerships. My work as a global trade advisor includes formation of vetted and trusted channel partnerships of reseller and technology developers, especially in large and complex international markets; and guidance for foreign companies who intend to expand and operate in North America.
Trade and investment accords between local governments and institutions abound on the sunny side of the street, underpinning national-level trade agreements and fortifying local economies. I discussed these beneficial accords in a recent address to Southern California business leaders, and cautioned them against dubious and insidious influence peddling that targets locally elected officials and ultimately weakens the economic resolve of communities.
"Recently, foreign governments have increasingly used cutouts to circumvent U.S. lobbying laws and contact state-level officials directly," stated an excellent article in Foreign Policy. Recent newsworthy skullduggery involving foreign players infiltrating the functions and campaigns of trusted public officials in New York, New Jersey, Tennessee, California, and New York City illustrates how porous the barriers can be against such influence in local jurisdictions.
Foreign representatives act locally to advance their causes — or thwart that of their political opponents — in most unexpected ways, under the guise of delivering foreign investment wins in the hyper-competitive world of economic development. Contact details for such agents may include the terms Institutes, Cultural Societies, or Sovereign Wealth Funds.
Also slipping through these porous barriers are cyber criminals who take aim at highly prized intellectual property conceived and formed by US research and development facilities. When I was stationed at the US Embassy in Bucharest as Commercial Officer, I teamed with US Department of Justice colleagues to elucidate these vulnerabilities to the country's leading research arms, supported by the Federal Bureau of Investigation's anticorruption arms. Statistics on the damage done report losses to national economies in the hundreds of billions.
Leaders of research facilities, local and state elected officials, and industry regulators must remain hyper-vigilant against such incursions under the guise of new partnerships. My work as a global trade advisor includes formation of vetted and trusted channel partnerships of reseller and technology developers, especially in large and complex international markets; and guidance for foreign companies who intend to expand and operate in North America.
Made in North America, a Brand Cachet
03/10/24 12:35
When it comes to brand dominance, what counts most? Reliability, quality craftsmanship, and innovation come to mind, and they are all ascribed to products and services that originate from manufacturers, providers, and technologists in Mexico, Canada, and the US. These products, with their North American stamp, not only meet but exceed global standards, making us a force to be reckoned with in the international market.
This enviable Made in North America brand is fortified by a tri-national trade agreement referred to as USMCA, CUSMA, and T-MEC (can you guess which acronym pairs with which country?). Enacted 30 years ago, NAFTA (which in 2020 became USMCA et al.) was the official declaration on the North American Competitive Edge and took its place in the Troika of Trading Blocs alongside the European Union and the nation of China.
Throughout my tenure promoting exports and attracting foreign direct investment to North America, audiences in the three countries wherein I served as a US commercial diplomat were drawn to attributes such as reliability, cost-efficient manufacturing, transparent business dealings … and that certain je ne sais quoi brand cachet that is unique to products designed and built in North America, setting them apart from the rest.
Infrastructure and funding resources are vital to ensure our companies sustain this competitive edge. Communities in Canada, Mexico, and the US compete fiercely to attract high-value foreign investment funds, such as Clean Energy Partnerships that originate and are promoted by local governments. (See my blog post on Subnational Diplomacy.)
Uniquely North American Brands: Indigenous Communities and Small Business Engagements
The USMCA pact accommodates small businesses that export uniquely North American brands, which in turn creates a stronger intra-North American supply chain. This initiative also supports Native American (US), Indigenous (Mexico), and First Nations (Canada) rural manufacturers and women- and minority-owned businesses. The US Commerce Department and their federal agency counterparts quickly developed trade missions tailored to these groups, further extending the globe’s small business ecosystem. And, since most people in the world work for small businesses, that just makes for stronger communities everywhere.
Learn a bit more about some government initiatives here, and read about my work in global branding strategies here.
This enviable Made in North America brand is fortified by a tri-national trade agreement referred to as USMCA, CUSMA, and T-MEC (can you guess which acronym pairs with which country?). Enacted 30 years ago, NAFTA (which in 2020 became USMCA et al.) was the official declaration on the North American Competitive Edge and took its place in the Troika of Trading Blocs alongside the European Union and the nation of China.
Throughout my tenure promoting exports and attracting foreign direct investment to North America, audiences in the three countries wherein I served as a US commercial diplomat were drawn to attributes such as reliability, cost-efficient manufacturing, transparent business dealings … and that certain je ne sais quoi brand cachet that is unique to products designed and built in North America, setting them apart from the rest.
Infrastructure and funding resources are vital to ensure our companies sustain this competitive edge. Communities in Canada, Mexico, and the US compete fiercely to attract high-value foreign investment funds, such as Clean Energy Partnerships that originate and are promoted by local governments. (See my blog post on Subnational Diplomacy.)
Uniquely North American Brands: Indigenous Communities and Small Business Engagements
The USMCA pact accommodates small businesses that export uniquely North American brands, which in turn creates a stronger intra-North American supply chain. This initiative also supports Native American (US), Indigenous (Mexico), and First Nations (Canada) rural manufacturers and women- and minority-owned businesses. The US Commerce Department and their federal agency counterparts quickly developed trade missions tailored to these groups, further extending the globe’s small business ecosystem. And, since most people in the world work for small businesses, that just makes for stronger communities everywhere.
Learn a bit more about some government initiatives here, and read about my work in global branding strategies here.
Strategic Channel Partnerships in Complex Markets
03/09/24 12:34
The nexus of global trade is centered on partnerships, ranging from manufacturer representatives to value-added distributor networks and eventually to subsidiary office staff. Your brand's local presence hinges on local partnerships, who can advance your company … or, in some cases, cause irreparable harm to brand reputation. The question is not IF you should utilize local partnerships but HOW.
First, audit the needs of your product line and the internal workings of your company. Does your internal administrative staff deal satisfactorily with international customers directly? Has your finance office mastered multinational transactions and your logistics team the details of shipping internationally? Then, define the depth to which a local partner must act in your stead and begin the partner search process. Here is where you should seek the guidance of experts in global channel strategies, whose knowledge and experience will be invaluable in this process.
A branch in your decision-making tree begins here, a crucial point that will shape your company's future. It will result in your company negotiating a simple-form manufacturer representative agreement, or a more comprehensive value-added distribution partnership. From simple to complex, operating margins and pricing models must fluctuate to lock in target profits, and your active involvement in this process is key.
Read more about how Channel Architect accelerates international business growth for small- and medium-sized exporters worldwide.
First, audit the needs of your product line and the internal workings of your company. Does your internal administrative staff deal satisfactorily with international customers directly? Has your finance office mastered multinational transactions and your logistics team the details of shipping internationally? Then, define the depth to which a local partner must act in your stead and begin the partner search process. Here is where you should seek the guidance of experts in global channel strategies, whose knowledge and experience will be invaluable in this process.
A branch in your decision-making tree begins here, a crucial point that will shape your company's future. It will result in your company negotiating a simple-form manufacturer representative agreement, or a more comprehensive value-added distribution partnership. From simple to complex, operating margins and pricing models must fluctuate to lock in target profits, and your active involvement in this process is key.
Read more about how Channel Architect accelerates international business growth for small- and medium-sized exporters worldwide.
Sub-national Diplomacy: How local governments and institutions attract Foreign Direct Investment (FDI)
05/08/24 11:09
August 5, 2024
Throughout my international work assignments as a United States commercial service officer, I witnessed the resounding success of local governments, industries, and institutions in their fierce competition to attract and retain foreign direct investment (FDI). Property owners and economic development leaders, with their visions of dignified ribbon-cutting and groundbreaking events, work tirelessly to bring foreign companies to their communities. The true measure of success, however, comes later, when these new companies recruit and hire talented workers, thereby generating new sources of local tax revenue. My experiences in Brazil, Romania, Canada, and Louisiana have allowed me to hone two unique approaches to winning FDI, which have proven to give their jurisdictions a competitive edge.
One of the unique strategies I developed was a North American approach to subnational diplomacy. During my time in Canada, I facilitated collaboration between Canada’s Indigenous First Nations and United States Native American corporations. Economic leaders from these communities came together at matchmaking sessions, tribal council gatherings, and trade events to promote and exchange business models, generating export revenue for tribal members and diversity for these communities. This approach not only created economic opportunities but also led to the emergence of new educational and vocational training opportunities.
Second, I observed how subnational engagement between states, counties, provinces, and major cities stokes the FDI engine worldwide. Trade missions expand upon the time-honored Sister Cities cultural exchange model to spur mutual investments across borders. Mega-states such as California, São Paulo, Ontario, and cities such as Los Angeles, Barcelona, and London stand out as global trading leaders. I organized and hosted dozens of trade missions to and from the United States on behalf of these local jurisdictions, many of whom employ international business strategists as nations do. Recently, the Brookings Institute launched its Metro program that coaches and supports several such metropolises on attracting global trade and FDI directly, over and above the international trade programs of their respective states and provinces. The Brookings’ Global Cities Initiatives empowered some 30 metropolitan areas to create global export and promotion plans.
In June 2024, I attended an FDI promotional event hosted by economic development agencies within greater Los Angeles to welcome and inform international delegates en route to participate in the U.S. Commerce Department’s SelectUSA Investment Summit. Participants learned about this mega-region's educational, transportation, and workforce attributes. Later that week, I moderated a panel of international company officials at the Investment Summit in Washington; the panelists had recently established U.S. subsidiaries and shared “know before you go” tips on preparing and collaborating on successful expansion. Among their lists? Prepare your internal teams, polish your best pitches to lure prospective employers, gravitate toward where your supply chain and key customers reside, engage exhaustively with local government officials, and ensure the presence of critical professional services in finance, law, and transportation. Top of that list? Choose a place with a high quality of life where employees and supply chain partners will enjoy their daily lives.
Throughout my international work assignments as a United States commercial service officer, I witnessed the resounding success of local governments, industries, and institutions in their fierce competition to attract and retain foreign direct investment (FDI). Property owners and economic development leaders, with their visions of dignified ribbon-cutting and groundbreaking events, work tirelessly to bring foreign companies to their communities. The true measure of success, however, comes later, when these new companies recruit and hire talented workers, thereby generating new sources of local tax revenue. My experiences in Brazil, Romania, Canada, and Louisiana have allowed me to hone two unique approaches to winning FDI, which have proven to give their jurisdictions a competitive edge.
One of the unique strategies I developed was a North American approach to subnational diplomacy. During my time in Canada, I facilitated collaboration between Canada’s Indigenous First Nations and United States Native American corporations. Economic leaders from these communities came together at matchmaking sessions, tribal council gatherings, and trade events to promote and exchange business models, generating export revenue for tribal members and diversity for these communities. This approach not only created economic opportunities but also led to the emergence of new educational and vocational training opportunities.
Second, I observed how subnational engagement between states, counties, provinces, and major cities stokes the FDI engine worldwide. Trade missions expand upon the time-honored Sister Cities cultural exchange model to spur mutual investments across borders. Mega-states such as California, São Paulo, Ontario, and cities such as Los Angeles, Barcelona, and London stand out as global trading leaders. I organized and hosted dozens of trade missions to and from the United States on behalf of these local jurisdictions, many of whom employ international business strategists as nations do. Recently, the Brookings Institute launched its Metro program that coaches and supports several such metropolises on attracting global trade and FDI directly, over and above the international trade programs of their respective states and provinces. The Brookings’ Global Cities Initiatives empowered some 30 metropolitan areas to create global export and promotion plans.
In June 2024, I attended an FDI promotional event hosted by economic development agencies within greater Los Angeles to welcome and inform international delegates en route to participate in the U.S. Commerce Department’s SelectUSA Investment Summit. Participants learned about this mega-region's educational, transportation, and workforce attributes. Later that week, I moderated a panel of international company officials at the Investment Summit in Washington; the panelists had recently established U.S. subsidiaries and shared “know before you go” tips on preparing and collaborating on successful expansion. Among their lists? Prepare your internal teams, polish your best pitches to lure prospective employers, gravitate toward where your supply chain and key customers reside, engage exhaustively with local government officials, and ensure the presence of critical professional services in finance, law, and transportation. Top of that list? Choose a place with a high quality of life where employees and supply chain partners will enjoy their daily lives.