World Tradewinds

IN THIS ISSUE:

• MBITA Corporate Sponsor: Crop•Circle•Studios

• Poland: the Gateway to the European Union Market

• One Global California Conference: An Economy in Transition
  Los Angeles, May 5 2004
  

• MBITA Upcoming Events

• MBITA Members and Corporate Sponsors Links
  

MBITA has been invited to participate in the California Trade Partners (CTP) advisory committee to Secretary Sunne McPeak’s Business, Transportation and Housing (BTH) agency. The purpose of the advisory committee is to determine how the State can utilize new technologies through the TradePort website and the CalTrade Coalition network to better serve California companies to expand their markets globally. MBITA is now researching more cost-effective and efficient methods for TradePort to provide seamless trade promotion services through online trade transaction technologies and collaborative solutions for businesses throughout the State. Stay tuned for some exciting developments for MBITA and TradePort in the coming months.

• MBITA Newsletter Sponsorship Information
  
  
• MBITA Contact Info

MBITA Corporate Sponsor:

First National Bank, South Valley National Bank, San Benito Bank, Santa Barbara Bank & Trust, and Pacific Capital Bank, are proud to be corporate sponsors of MBITA!

The five banks named above are associated as a Network of Community Bank’s. This association enables each Bank to maintain their separate name, identity and unique culture that define premier banking in their distinct neighborhoods. They are best known for their quality customer service with a strong community-orientation, and yet their combined strength enables them to offer a variety of international banking solutions for their commercial clients.

The following fictitious “case study” relays a common trade scenario for companies who do business internationally. The case study will demonstrate how a general description of a company’s common business practices can help the Bank match financial solutions to the Company’s international banking needs:

Sophisticated International Inc. is a manufacturer of high quality luggage, which is exported all over the world.

The leather for their suitcase line is sourced from a company in Texas and the finished product is assembled at the Sophisticated factory in Salinas, by American craftsmen. Management had made a strategic decision years ago to stay away from the direct marketing of their product. Instead, they rely upon distributors all over the world, who purchase the merchandise and sell it in their respective markets. The average sale to each distributor translates to about $100,000 per shipment. Sophisticated is requesting a working capital line to support the company’s growing production demands. In reviewing the Sophisticated Profit & Loss statement, it appears that there is a substantial and re-occurring Accounts Payable item to one specific company in Asia named “Bukl-Rite”, indicating that they are also importing raw materials.

Sophisticated has one distributor in Western Europe that they have been doing business with for 8 years and is by far the Company’s oldest and most trusted counterpart. Last year alone, this single distributor imported $400,000 worth of Sophisticated luggage, using commercial Letters of Credit. Both parties are estimated to have paid about $10,000 in Letter of Credit-related charges last year. Both Sophisticated and the distributor would like to find less expensive and less burdensome ways in which to transact business going forward.

While Sophisticated International has only provided a short synopsis of the company’s business needs, the Bank is able to identify many financial solutions for Sophisticated’s business transactions! Of course Sophisticated knew that the Bank would be able to provide the working capital line of credit they requested, but they didn’t expect that so many of their international banking needs could be met by the Bank!

Sophisticated will benefit from the services mentioned above as well as from the many other business services available to them through the Network of Community Banks!

• First National Bank
• South Valley National Bank
• San Benito Bank
• Santa Barbara Bank & Trust
• Pacific Capital Bank

MBITA members are welcomed to call for solutions to your international and domestic banking needs!

The International Banking Group is staffed by the following professionals:

• Becky Venard
Vice President Northern Region (831) 658-4614
email: bvenard@1stnational.com
Web: www.1stnational.com

• Shawn Walters
Vice President & Product Manager

MBITA Corporate Sponsor

Crop•Circle•Studios is celebrating its sixth year of business in Monterey, California. Creative Director and Founder Bob Homami established the full service media design firm as a “gathering field” for seasoned artisans to nurture and unleash their creativity and talent in a purposeful manner. “I’m really excited about the team that’s on board, the momentum we’ve created and the opportunities that are presenting themselves,” said Homami.

“PowerfuI•Impressions™,” the dynamic result promised to each client is based on the idea of the astonishing crop circle designs that have mysteriously appeared in fields around the world. From simple to elaborate, these crop circles are powerful impressions left behind by unknown artists to inspire the audience. “We harness that power and apply it for each of our clients,” said Erik Chappins, the company’s Art Director. “Each of our circle makers,” as he referred to the team members, “brings experience from multiple markets and unique, superior skills to our ‘field’ of play, literally allowing our design circle to function without boundaries.”

By leveraging the imaginative minds and stellar capabilities of professionals from across the realm of communication the company has positioned itself to be a leader in media design on the Central Coast. Production Director Tommy Thompson said, “We effectively engage ‘bleeding edge’ technologies.” He continued, “We call them ‘bleeding edge’ because that is the actual impact point of cutting edge. We adhere to three simple philosophies: exceptional quality, fast turn-around and reasonable pricing. Our technologies, ethics, business methodology, matrix model of scalable resources and our proprietary Internet based proofing environment, makes us a clear choice for any size project, anywhere.”

Their product can be witnessed in a variety of media representing an equal variety of clientele.
Crop•Circle• Studios has the following service offerings:

“We don’t just sell our services,” said Homami, “We enter into relationships. We don’t just conceptualize ideas; we achieve a clients’ goal by realizing the vision with unparalleled execution. Boundaries exist only if we believe in them. We have recently launched our “reformation” campaign to celebrate Crop•Circle• Studios’ sixth year in business and look forward to making many more POWERFUL•IMPRESSIONS™.”

“Web site and product media design is becoming a crucial component in a company’s global marketing strategy. The capability of providing a succinct and powerful visual message about your company and its products or services tailored to the business culture of any one particular country is critical for success. We see Crops•Circle•Studios as leaders in the media design industry and MBITA looks forward to some innovative online solutions when using visual media to market products and services throughout the world”, says Tony Livoti of MBITA.

Contact:

Bob Homami
Creative Director
Crop•Circle•Studios
Ph: 831.646.1543
Fax: 831.646.1593
Web: www.cropcirclestudios.com
E-Mail: bob@cropcirclestudios.com

On May 1, 2004 Poland became a full-fledge member of European Union. When we think about Poland a few names conjure to our minds like Frederick Chopin from the past and Pope John Paul II and Lech Walesa, leader of the Solidarity Movement and Nobel Peace Prize winner, from the present. Solidarity was attributed to the fall of communism in Poland and in Eastern Europe as a whole.

Poland has a strategic location with the Baltic Sea in the north and its two powerful neighbors, Germany on the Western border and Russia on the Eastern border (including the former Soviet Union republics: Belarus, Ukraine and Lithuania). Poland is bordered in the south by Slovakia and the Czech Republic.

Unfortunately, this central location also contributed to Poland's tragic history during the German and Russian occupation. But now Poland is an independent country and its past geographical weakness can become its strength. There has never been a better time than now to take the advantage of the business opportunities available in Poland.

Some facts on Poland: " Poland is the largest market in Central Europe " 38+million consumers " Rapidly growing economy (4.5% average GDP growth over the past 10 years) " 50% + increase in food imports from 2000 to 2002 " Growing middle class with an increased disposable income and purchasing power

Photo by Jacek Jendrych

I had the pleasure to attend the International Food, Drink & Hospitality Exhibition that was hosted in Warsaw on May 18-20 and this trade show demonstrated that American business should think about the Polish market in a broad spectrum - as a gateway to EU market.

The US Pavilion at IFE was endorsed by United States Department of Agriculture's Foreign Agricultural Service (FAS) and was organized by B-FOR International. The FAS supported US companies offering them two participation options, direct participation and a 'catalog' option where their product samples were displayed by FAS staff. MAP funding was also available from the FAS to offset of up to 50% of exhibition-related expenses for this trade show. Photo by Jacek Jendrych

Five companies decided to exhibit directly with their full range of products at IFE, 2004. There was Ernest & Julio Gallo, one of the largest winemaking operations in the world located in Sonoma, California, Food Source, Inc., Taylor Bros. Farm and Wilbur Packing Company offered dried prunes and nuts and SML International offered health and nutrition products and Weaver Popcorn. East Coast Seafood and US Rice Federation were represented by FAS staff that displayed and offered samples of their various products.

I am a native of Poland and I was very happy to see the progress Poland has made in the last few years. The Polish people are very optimistic and excited about being a part of the European Union and they all look forward to doing more business with America.

Contact: