While most of the tourism, tourism and hospitality industry in the U.S. tourism sector are the world leaders in travel and tourism (i.e. travelers from other countries visiting the United States) with 15% of global travel spending. Travel and tourism are one of the leading exporters of services with 31% of all services exports in 2014. Due to the high cost of domestic labor, many U.S. companies manufacture their products in countries with lower labour costs. This agreement is called international order manufacturing, a form of outsourcing. A U.S. company could enter into a contract with a local company in a foreign country to manufacture one of its products. However, it retains control over product design and development and puts its own label on the finished product. Contract manufacturing is very common in the U.S. apparel industry, with most U.S.
brands manufactured in a number of Asian countries, including China, Vietnam, Indonesia and India.8 Even if two people from the same country communicate, there is still a possibility of misunderstanding. When people from different countries come together, this possibility increases considerably. Differences in communication styles reflect cultural differences: the system of common beliefs, values, customs and behaviours that determine the interactions of members of a society. Cultural differences pose challenges to successful international trade relations. Let`s look at some of these challenges. In short, learn more about a country`s culture and use your knowledge to improve the quality of your business relationships. Learn to appreciate the subtle differences between cultures, but don`t let cultural stereotypes dictate how you interact with people in each culture. Treat each person like an individual and spend time learning what it`s all about. ImportIng Practices for buying products abroad and reselling in one`s own country.
(buying products abroad and reselling in one`s own country) and exporting practice of selling domestic products to foreign customers. (sales of domestic products to foreign customers) are the oldest and most widespread forms of international trade. For many companies, importing is the main link with the global market. For example, U.S. food and beverage wholesalers import Evian bottled water from its source in the French Alps for resale in U.S. supermarkets. Fine Waters Media, “Bottled Water of France,” www.finewaters.com/Bottled_Water/France/Evian.asp (available May 25, 2006). Other companies are entering the world stage by identifying an international market for their products and becoming exporters. The Chinese, for example, are increasingly interested in fast food cooked in soy oil. Because they also have a growing appetite for meat, they need high-protein soybeans to raise livestock.H. Frederick Gale, “China`s Growing Affluence: How Food Markets Are Responding” (U.S. Department of Agriculture, June 2003), www.ers.usda.gov/Amberwaves/June03/Features/ChinasGrowingAffluence.htm (called May 25, 2006).
As a result, U.S. farmers export more than $9 billion worth of soybeans to China each year. American Soybean Association, “ASA demonstrates the importance of the China market to the United States.