Why We Need To Import & Export
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
The United States is an economic beast. We are home to some of the largest and most successful businesses on Earth. A big reason for that is because we are able to work internationally by importing and exporting goods and services. Cut that ability out and our economy changes. So, what exactly are the benefits? That is what we will talk about today.
We need to import from other countries for many reasons. To begin, we need to import to introduce new products to the market. A healthy market is one with different options for consumers to choose from. New products are what keeps businesses afloat and competitive. Secondly, we need to import to reduce costs. Many businesses find that importing products and resources are way more affordable than producing them here in the states. Instead of investing in modern, expensive machinery, businesses opt to import to reduce those costs. Lastly, although we are an economic beast that does not mean we are the best at everything! Some of the highest quality products are from other countries. Many factories and other highly professional sellers reside abroad and have an upper hand on quality of products compared to their competition here in the United States.
It is also important for our businesses to export to other counties as well. Just as there is a variety of benefits of importing goods and services, there are numerous reasons for exporting. The first reason being that exporting tends to increase sales potential. If businesses want to grow their business they can look internationally or even globally. Exporting is especially good for medium and large businesses – the ones that have already expanded within the local market. Additionally, exporting increases profits. Foreign orders are usually larger than those placed by local buyers. Here in the states local customers buy a few products or a pallet at a time while businesses abroad oftentimes order containers or larger loads at a time. And a product made here that has never been seen in international markets, profits increase rapidly in no time.
So, do we need to import and export to keep our economy up and running? The answer is absolutely! Businesses depend on their ability to import and export as they come with countless benefits.
For more information on importing and exporting please reach out to us here at Duty Calc.
Hiring Foreign Employees
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
If your company does business internationally it is important to know what it takes to hire foreign employees. Different countries have different laws and if you do not understand how to hire properly, you could be really holding back your company. Immigration here in the United States is a complex process. This compounded by national discourse can make the process even harder. Today we are going to detail a few steps to take when hiring a global workforce.
The first thing you should do is start early. Understand that there is a lot of red tape involved. Hiring an employee in the United States can be done in a week but hiring a foreign employee can take months or even years depending on which business immigration programs are utilized. Strategize accordingly with realistic hiring timelines.
Part of an early start also means making the necessary preparations within your company. For example, you need to know what roles within your company you want to fill with foreign employees. Once you have identified these roles you need to make plans for recruitment and retention. Create a plan, train your HR department to help your business and employees stay in compliance, and go get that talent through proper internal preparation. Do not hire foreign employees and play it by ear. This will cost your company valuable time, money, and resources.
Lastly, understand your hiring options. There are different visa programs out there and you need to know which one is appropriate for the foreign employees you are interested in. For example, if you plan on your new foreign employee to eventually become a permanent resident, an employer-sponsored green card can be the most effective and predictable way to hire. In turn, if you want to open a new business or a branch of a foreign company then you should utilize the L visa, the E visa, or a strategic combination of the two.
It is important to know all of the ins and outs of hiring foreign employees but starting early, preparing the right way, and understanding all of your hiring options is a great start. If you start internally the process will be much smoother.
International Trade Myths
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
International trade has many economic benefits. Free trade allows consumers to buy more, better-quality products at significantly lower costs. With free trade we get economic growth, enhanced efficiency, and increased innovation. These are some of the realities that come with international free trade. What we need to be warry of are the myths that are often associated with international trade.
First, more exports do not necessarily mean more wealth. It is actually the total level of trade that reflects economic wealth. This means total imports and total exports. More exports increase wealth only because they allow us to buy more imports and give non-Americans greater incentives to invest into the economy. If we only export and restrict imports it leaves our economy worse off.
Secondly, many think that free trade means domestic jobs go overseas. False. What really happens depends on the industry. For example, with free trade jobs in highly inefficient industries might be reduced. On the flip side, it frees up resources to create jobs in highly efficient industries, boosting overall wages and improving living standards. Protectionism might “save” some jobs but that comes with a cost. The cost of opportunities and input costs will swell for industries downstream.
Lastly, this sounds counterintuitive but trade deficits are good for us. This is because a trade deficit is usually a signal that global investors are confident in our economic future. Our trade deficit might be larger than it would otherwise be if a trading partner chooses to keep the price of its currency artificially low, but this practice harms the trading partner, not us.
While international trade can have some downsides, overall, there are so many benefits and we have to weed out the misconceptions that are often discussed with this topic. Bust these myths and know the benefits of international trade!
Gas Prices Up & Down
Duty Drawback Software | Import Export Consulting | Processing Filing | Full Service
During the past two years, we have seen gas prices skyrocket. The cost of gas spiked significantly, reaching highs that this country has never seen before. But if you have been paying attention, these past 3 months have been different. According to NBC News, for 98 consecutive days this summer, American drivers experienced declining gas prices thanks in part to a slower worldwide demand for oil. Unfortunately, we are beginning to see prices go back up.
In late September a cut in oil production signaled by the OPEC+ group sent global crude prices higher, pushing prices back up at the pump here in the United States. Major oil producing countries including Saudi Arabia and Russia announced that they are cutting oil production by 2 million barrels per day. According to AAA, the national average for a gallon of gas climbed to $3.92 on October 10th.
Many parts of the United States will see slight increases but Californians and regions surrounding the Great Lakes are in for some super high prices. Patrick De Haan, Head of Petroleum Analysis at GasBuddy says that for the past few weeks, an onslaught of refinery issues both in the west coast and the Great Lakes is the reason why gas prices have tremendously increased. De Haan says refinery issues include undergoing seasonal maintenance along with minor issues that, when put together, greatly limits the ability for refineries to produce gas. It is the combination of planned maintenance, but more so the unexpected outage that have caused prices to soar in some regions. De Haan said that he expects prices to rise as much as $0.30 from their September lows, which would put them at around $4.00 a gallon as an average across the country.
The summer months were good for us as gas prices finally started to come down from the COVID-19 pandemic but unfortunately we are going to see prices surge again until at least the end of the year.
