Pacific Coast Business Times
May 18-24, 2001
International Trade
By Laura Polland Staff Writer
The International Trade Tools and You lecture series turned its focus westward on May 9 to offer information on trade with Asia. The seminar was the fourth in a series put on by Center for International Trade Development at Oxnard College, and featured tips on business communication and facts and figures about trade with Asia.
Ed Rivera, interim director of the CITD, also announced a trade mission to Vietnam planned for early July. “I feel Vietnam represents an emerging national market. I don’t like to go into markets that are oversaturated,” he said. He added that our trade relationship with Vietnam has been developing positively.
Bill Irion a primary organizer of the seminar series and principal of Pacific Rim business consultancy Irion Enterprises, spoke on “Connecting, communicating and negotiating in Asia.”
Irion began with Japan, formerly California’s top trading partner, the second wealthiest nation per capita, and the only country to encourage imports. He explained that Japan, like other Asian countries, has business protocol that could be very confusing to American businesspeople.
One example is gift giving, a tradition that is very important but rife with possibilities for mistakes.
Gifts given in Japan need not be extravagant, though if they are, it wouldn’t be misconstrued as a bribe. Nicer gifts should be given to higher-ranking individuals, but whatever the quality, it is polite to downplay the value of the gift. Gifts bearing the company logo are not recommended, nor is white or flashy wrapping paper.
Gifts with the company logo are appropriate in China, where one must not give the impression of offering a bribe. Along the same lines, group gifts are recommended but extravagant gifts, sharp objects and clocks are not. It is to be expected that the gift will be politely refused a couple of times before it is accepted.
Irion also mentioned that in Thailand, modest gifts given in threes and wrapped in bright paper are appropriate, while more extravagant gifts are given in Korea.
Aside from such minutiae, the most important thing to remember in business dealings with Asia is to be patient, he said. Long-term, mutually beneficial relationships are preferable to the results-oriented contact more common in the United States.
Brent Marletti, the marketing officer of the Malaysian Consulate in Los Angeles, showed a video about trade opportunities in Malaysia. The tiny seafront country was ranked as the 17th largest exporter in the World Trade Organization Annual Report 2000. Its exports to the United States had a customs value of $19 billion in 1998, and exports to the U.S. grew 35 percent in the year 2000.
A third of Malaysia’s gross domestic product is manufacturing. Although it has primarily shifted from commodities to manufacturing, it is still a significant producer of palm oil, cocoa, pepper and rubber.
Bill Buenger, director of Port Hueneme, also spoke on the port’s history and services.
World Trade magazine’s March 2001 issue gave vital economic statistics about 15 Asia Pacific countries. Those receiving a “thumbs up” rating were Australia, China, Hong Kong, India and Singapore. Those rated “thumbs down” were Indonesia and Pakistan. Japan, Korea, Malaysia, New Zealand, the Philippines, Taiwan, Thailand and Vietnam were given a neutral rating.
Statistics included exchange rates, imports and exports, GDP growth and inflation. Singapore had the highest GDP percentage growth in 2000, at 9.8 percent; forecasts for 2001 placed Vietnam in the lead with 7.9 percent. Japan had the least growth in GDP, at 2 percent in 2000 and 1 percent forecasted for this year.
Japan had the lowest inflation in 2000 at -0.3 percent, while India topped the list at 6 percent. Forecasts for 2001 keep Japan at the low end with 0.5 percent, while 8 percent inflation is forecasted for the Philippines.
©2001 Pacific Coast Business Times. All Rights Reserved, Reprinted with permission.