In my two previous articles, "What is Trade Data" and "How to Use Trade Data", I discussed what types of trade data exists, what questions it can answer, and what the general uses are. Once you have made the decision to use trade data in your company, the next step is to determine what type of data you should use and what the important features are to consider when choosing a trade data provider.

U.S. Census or U.S. Customs Data?

The two main types of trade data provided by the United States government are U.S. Census and U.S. Customs data. In short, the difference between these two datasets is that U.S. Census data is a high level, aggregate view of the movement of goods to and from the United States and U.S. Customs is a shipment level, detailed view of the products being imported. Depending on the research you are conducting, U.S. Census data will answer different questions than U.S. Customs data and in some case when the data is used together, great insights can be found.

Choose U.S. Census data if you need the following:

* The total value of shipments being imported/exported for a product or group of products.
* The top trading partners for the U.S. for products or groups of products.
* Data based on Harmonized Tariff Code or H.T.S number.
* Information including truck, rail, or air shipments (these are not included in U.S. Customs Data).
* The balance of trade between the U.S. and a trading partner.
* Information on exports, currently there is not a complete set of export data as it is not released by U.S. Customs in the same manner as import data.


Choose U.S. Customs data if you need the following:

* Specific shipment details, i.e. you want to see how products are being listed on shipment documents.
* Research a competitor's or supplier's imports into the United States.
* Find companies in a specific region who are importing.
* Search for product based on description (H.T.S. Codes are not provided in U.S. Customs data).
* Establish supply side market shares for companies.
* Continuously monitor shipments for an importer or supplier.

How timely should I expect the data to be?

U.S. Census data is completed and released approximately 45 days after a month's close. Most providers then quickly incorporate this information into their tools. The data is updated once a month and then there can be revisions to the official information from the Census Bureau at a later date.

U.S. Customs data is released to providers on a daily basis and different providers expose this information for their customers within a couple of days or it could take several weeks. No providers have a live feed to the data as it takes U.S. Customs a couple of days to distribute the information. In addition, some providers augment the raw data with outside sources which can dilute the raw data from U.S. Customs and causes delays in distribution.

What are the features to look for in a trade data provider?

Choosing a trade data provider is like buying any other business tool; the features and functionality of the tool matter. Once it is determined what type of data set is needed, U.S. Census, U.S. Customs, or both, it is important to note that even though the source data is the same, the interface that is used to find the information can greatly affect the accuracy of the data retrieved, the time it takes to complete a project, and the ease at which the data can be pulled. Companies should consider the overall value when selecting a trade data provider along with these factors:

1. Timeliness of the data (How old is the newest information?)
2. Support level of the provider (Will the provider include training and prompt customer service?)
3. Accuracy of the data (Has the provider changed or truncated the data?)
4. Accuracy of searches (Are you purchasing a search engine or an advanced trade data tool?)
5. Breadth of data (Does the provider limit access to only a slice of the dataset or provide several years of historical data?)
6. Trial Subscriptions (Will the provider allow you to use the tool before you purchase it? A video demonstration or a sample report of data is not a full representation of the tool.)

Ultimately, using trade data of any kind will improve a company's knowledge base and provide the information necessary to make the correct decisions needed in a changing marketplace. It is up to the end user of the data to decide what type of information they need (high level or detailed), what uses they will have for the data within their company, what trade data application features will best meet their needs, and finally, what provider can partner with them to transform raw government data into actionable intelligence.



Article Source: http://EzineArticles.com/?expert=Kevin_Palmstein

Studying the history of business is a fascinating exercise. The origins of many of the finance and business products that we utilize today were perfected during centuries past in countries sprinkled far and wide around the world. One of the most important, inventive and skilled business cultures was created in the Netherlands during the 17th century.

As the world was discovered, mapped and colonized by the early Spanish and Portuguese explorers, new trade routes were pioneered and many high value products came to market in Europe as demand for exotic imports exploded. This boom in international trade required a corresponding expansion of novel financing mechanisms to fund this commerce.

The first great merchant traders were the Portuguese. They used Lisbon as their trade center. However, their trade apparatus was primitive even for the age. The principal imports and the most valuable products of 1600's trade were East Asian spices and silks. Because the Portuguese were inefficient in distribution and in financing methods the Italians, Spanish and Dutch were all interested in circumventing Portuguese merchants and overtaking their trade relationships.

The Dutch were particularly enterprising. They were also committed to espionage. Use of spies enabled the Dutch to discover the state secrets of the Portuguese trade routes. With knowledge of the well documented Portuguese trade routes in hand, a great level of risk was removed from the international commercial trade equation.

In 1598 Jakob von Neck organized a group of five companies into a trade expedition. He left with 22 ships, visited the Spice Islands in Indonesia and managed to negotiate and secure a cargo of pepper and other valuable spices. By the time he had returned to the Netherlands, von Neck had lost eight ships but still earned his investing partners a 400% return on their stakes.

At that time each voyage was a stand-alone business entity. Piracy, disease, weather and simple navigation error made these trips highly speculative. Also, the commodities being traded were highly elastic in valuations. A successful voyage could generate staggering profits, but losses were common and could be steep.

The Dutch saw opportunity to create a cartel. The result was the Dutch East India Company formed in 1602. This was the world's first multinational company. The enterprise was the worlds first to be owned by investors through the issuance of stock equity.

The Dutch East India Company did not simply send ships to negotiate one off trade deals. The Company became fully integrated to mitigate risk and maximize profits. In addition to owning, manning and operating a shipping fleet, the Company fielded a phalanx of trading agents in countries all over Asia. They built and maintained fixed trading posts near the farms, plantations and sources of production of their trade goods. Having a permanent team of buyers, sellers and facilities on location cemented trade relationships at a time when communication was horribly inefficient. This gave Dutch traders huge advantages over competitors.

The Dutch became ensconced in the regions they cultivated for trade. In addition, owing to the immense travel distances required to complete each voyage, they established a system of logistics, strategically placed supply outposts, repair facilities and provisioning points to support the growing ship traffic that the Dutch East India Company maintained. The outposts were dotted along the African coasts, Madeira, Madagascar, India and Indian Ocean Island Archipelago's. The presence of these commercial facilities only served to increase trading opportunities for the Company in regions where these plants were positioned.

For almost 200 years the Dutch East India Company paid a dividend to shareholders of 18%. This was the most valuable enterprise in the world at that time. The success of this business model made tiny Holland the richest state on earth. They pioneered the use of letters of credit, bills of lading and receivable financing. These, and many other finance mechanisms created by the Dutch, enabled this tiny kingdom to enjoy status as one of the world's great colonial powers while much larger nations stumbled and declined.

For 200 years the Dutch East India Company was the international gold standard for corporate governance, performance and profitability. To this very day, the trade routes, trading terms and conditions, and marketing techniques perfected by Dutch merchants are in use. This entrepreneurial nation is an example that modern states can study to learn the massive positive possibilities inherent in creating open trading systems.

Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.

After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.



Article Source: http://EzineArticles.com/?expert=Geoff_Ficke