As the world becomes more globally interconnected, Kansas Department of Commerce ensures that our state is relevant and engaged internationally. This helps grow the state economy and fosters positive diplomatic relations. At an increasingly rapid rate, advances in technology, transportation and communications systems facilitate the free flow of goods and services across borders and increase economic integration. Combined with increasing global demand for goods, resources and services, these changes create opportunities for Kansas businesses and the Kansas economy.
There are many ways in which global commerce and economic integration impact Kansas:
- Market access: 95% of the world’s consumers live outside of the United States and 85% of the world’s purchasing power is located outside of the U.S. By strategically accessing foreign markets, Kansas companies can increase sales, grow their companies, increase wages, and potentially create economies of scale. Accessing foreign markets can also help Kansas companies get out ahead of potential competition that could affect their domestic sales. In addition, diversification of markets can help mitigate potential risks associated with regional market downturns.
- Investment in Kansas: Global companies that invest in Kansas create economic impact through job creation and investment in our communities. They also can positively impact industry sectors through knowledge spillover, access to technological advancements, and managerial and employee skills development.
- Sector strengths: Our key industry sectors are involved in global business, international trade, and trade infrastructure. Advanced manufacturing; aerospace and defense; distribution, logistics and transportation; food and agriculture; and professional and technical services are target sectors in the state’s Framework for Growth. Animal health and biosciences as well as transformative technologies also are being targeted. Many other sectors are involved in global commerce as well. For instance, wholesale and retail businesses are dependent on import and export of goods. Moreover, education brings in international students and faculty; and sports and tourism attract international travelers.
- Supply chain access: Manufacturers often are dependent on raw materials, subcomponents, equipment or technologies that cannot always be sourced domestically. Reliable access to international supply chains can help ensure continuity in their ability to produce the goods that they sell. Manufacturing is not the only sector dependent on international supply chains, though. Bottlenecks in access to materials, parts, goods, equipment and technology can have a domino effect on other industries.
- Innovation and collaboration: Involvement in international markets, and thinking about global issues, often stimulates innovation. Collaboration with international partners in industry and academia can help advance innovation, advance commercialization of innovation, and ensure interoperability of platforms.
- Diplomacy and cultural exchange: Understanding of other cultures, a cooperative international business environment, collaborative partnerships and shared economic interests can help create positive relations that help support geopolitical and economic stability.
Successful Kansas exporters and global companies investing in Kansas import capital into the state, support jobs, develop innovations and help us stay connected globally competitive. Global commerce is also important for supply chain access, shared economic interests, and knowledge transfer. It is more important than ever for Kansas to have companies, institutions of higher education and other important partners that participate in the global company.
The International Division of the Kansas Department of Commerce works to create and strengthen opportunities in global commerce for Kansas businesses, communities, and other important stakeholders in the State of Kansas.
Laurie Pieper, Ph.D., CGBP
Assistant Director, Global Resources
International Division, Kansas Department of Commerce
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