10 Principles in Economic Development - Global Economy
- Have you assessed your area's competitive
advantages and disadvantages in the global marketplace?
- How do you encourage businesses to take advantage
of international opportunities?
- What are the barriers for businesses to entering
the international marketplace and how do you address them?
- How do your infrastructure, work force, and
other investments contribute to your global competitiveness?
With the increasingly global economy, a key role
for economic development organizations is helping businesses make
the transition from targeting domestic markets to taking advantage
of international opportunities.
During the 1980s, most state governments recognized
the importance of international trade by creating or expanding
state trade offices. These offices courted direct foreign investment,
offered financial and technical assistance to small and medium-sized
businesses to help them in entering export markets, and provided
trade leads, among other services. In addition, state export agencies
frequently set up overseas offices to establish linkages with
foreign markets. With nearly a decade of experience with state-run
international trade programs and increasing sophistication about
international markets by U.S. companies, these programs are entering
a different level. For example, the International Trade Division
of the Oregon Economic Development Department (OEDD) is now formally
contracting with firms to assist them in entering foreign markets.
These contracts specify the department's and firms' objectives
in working together, set forth the department's responsibilities
to assist the firms, and require the firms to report their international
sales to the OEDD.
The state of Wisconsin has sought to make its international
trade services more accessible and user-friendly through a 1-800
number. The number, 1-800 EXPORT WIsconsin, is cosponsored by
seven utility companies and staffed by Wisconsin Department of
Economic Development employees, who provide on-phone and follow-up
support.
Operating in a global environment requires changes
in the way private firms and governments do business. To sell
in international markets, companies must now comply with international
quality standards known as ISO 9000 in Europe and, increasingly,
in other nations as well. Minnesota technical colleges, which
are spread throughout the state, are offering ISO 9000 training
for small businesses. This training is important not only for
those companies that are selling directly to foreign markets,
but also for companies that are suppliers to globally competitive
larger U.S. companies.
Infrastructure investments, work force training,
and educational priorities should be considered in increasing
global competitiveness. State transportation agencies and metropolitan
planning organizations are beginning to examine the relationship
of transportation investments in highways, transit, rail, air,
and water infrastructure to economic development as a result of
the federal Intermodal Surface Transportation Efficiency Act of
1991. This historic act shifts much more responsibility to states
and regions for setting investment priorities for infrastructure
investment and encourages economic efficiency or productivity
as the basis for making such investments.
Changes resulting from federal law and state policies
offer state and local economic development organizations an opportunity
to work with other state and regional policymakers to encourage
public investments that increase productivity and contribute to
global competitiveness.
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