"A company must have an American style to successfully enter the United States"

Reporter: The United States is a large, complex market that attracts many companies from around the world. How do you think a Romanian company that wants to approach the US market should proceed?

Elias Wexler: The United States market is really a very big market. Here people consume and are very well informed. They know exactly what and how they want. Therefore, if a Romanian company or group of individuals would like to come to the United States, they will first have to make a decision about the best way to do so. Of course, in addition to the legislation in Romania, they must ensure that they comply with the laws of the United States.

There are five ways a company can come to the United States and be successful.

The first and simplest way is by exporting your own products. The Romanian company has a customer in the United States and exports products to that customer. In this case, there is no need to establish a company in the United States. He just needs to make sure he has enough capital in Romania. However, since it sells the products in the United States, there are a few things to consider. One is related to US customs duties. Also, being a Romanian company that sells products in the United States, it will have to pay attention to certain tax obligations that it may have.

The second way is to license proprietary technology to an American company. Again, a company does not need to be incorporated in the United States, but again, it must have sufficient capital. Companies must ensure that they pay all US taxes and comply with US intellectual property, patents or trademarks. This is not the easiest way to break into the US market, but there are people who use it.

Another way is joint venture. It is a more complex method and with a much higher chance of success from a business point of view. Basically, a Romanian company can create a joint venture with an American company. In this case, several aspects should be considered. One of these is related to expenses. It is necessary to understand what funds are needed for a Romanian company coming to the United States. The company must also consider US tax laws and what happens to profits made in the United States, whether the profit is repatriated before or after taxes.

Another method by which companies can enter the American market is by setting up a branch office in the United States. That means working with a group of salespeople who market the company's products. Basically, the company has a presence in the country, people who promote and sell its products. It may also have storage space, which requires capital. They must know very clearly what expenses are necessary and how they are financed. Of course it will have to take into account US federal law, tax law and state laws. In such a case, understanding the tax requirements of the United States is very, very important to the success of the business, as each state charges different taxes, and the decision to establish a branch in the United States may depend on the state in which the company chooses to operate.

Finally, the most difficult way, but also with the greatest potential for success, is to establish a company in the United States. When working in the US, you must ensure that you comply with all federal and state laws and pay your taxes.

Reporter: Are there federal or state laws in the United States to support foreign companies?

Elias Wexler: Except for registering and owning a company in the United States, I am not aware of any form of government financial support. Whoever decides to come to this country and open a branch, a company, will be able to find some forms of financial support, depending on the city and state, but it is more difficult at the federal level. In some cases, if a company produces a certain number of jobs, states can give incentives that are generally tax breaks. There are states that will do anything to create jobs or bring in investment. However, for a Romanian company, this is less likely. Romanian companies tend to be smaller than American companies. I don't think there are many Romanian companies that can create thousands of jobs. They will usually create dozens of jobs, maybe 50, but not thousands.

Reporter: What are the main opportunities that the US market can offer a foreign company? Which sectors of activity could have high potential for Romanian companies?

Elias Wexler: So far, it has mainly been about IT. It's a growing field and relatively easy to break into in the United States. I was the president of the Society of Manufacturing Engineers of the United States and I am very connected to the US manufacturing industry. And now I see new opportunities in the United States because of the difficult relations the country has with China. There is a huge need to source products from outside of China. Until now, China has been the main supplier of products to the United States, but this is changing. Therefore, I believe that a Romanian company that manufactures in Romania can successfully market its products in the United States, because US customers are looking for everything that is outside of China. There is a tendency to separate from products made in China.

Reporter: What barriers or difficulties can Romanian companies face that want to enter the US market?

Elias Wexler: For a company to successfully enter the United States, it must understand the market here and enter the United States American style. You cannot come to this country as a Romanian company, as a French company or as any other company. You have to come here as an American company - it's the only way to succeed.

In the United States the market is different than in Europe, the products are different, the requirements are different and the demand is different. The marketing must conform to the requirements in this country and the products must conform to what is sold here. Let's say you are a door manufacturer from Romania and you want to come to the United States. There is a very large market here, but no door will sell unless it is manufactured and marketed according to the rules of the United States. Dimensions must be in inches, not millimeters, hardware must be appropriate for this country, etc. Therefore, someone who comes to the United States with a product that is successful in Europe or around the world will not be successful here unless they comply with the requirements in this country.

Reporter: What are the main characteristics of companies that have penetrated the US market and been successful?

Elias Wexler: Unfortunately, I don't know many Romanian companies that have been really successful in the United States. I'm not talking about small shops, but about bigger businesses. A few IT companies were successful and what they did was to enter into partnerships with American companies. In my opinion, this is probably the best way to enter the US market. You need to find a suitable partner in the United States and then decide in which area of the US you can best sell your products. For example, if you produce skis or snow boots in Romania and you want to sell them in Florida, I don't know how successful it will be. Therefore, you need to decide what you are producing and the states or areas of the United States where you can sell those products.

Reporter: What steps must a Romanian company follow to enter the US market? How should they prepare for this market?

Elias Wexler: A company needs to do its homework, which includes legal, tax, market strategies, where it should do business, etc. He also needs to make sure he has enough capital to grow the business in the United States. I don't think you can come to this country with little capital and expect immediate success. But as long as companies do their homework properly, I think there is a good chance of success.

Reporter: How can the Romanian-American Chamber of Commerce support a company entering the US market?

Elias Wexler: First, the company will need to become a member of our organization, and we will guide it. I emphasize that we are not a sales or marketing organization. Therefore, we cannot provide her with sales opportunities or marketing information, but we can support her in many other ways. For example, we can direct her to the right accountants, marketing people, maybe sales people, etc. We represent a very good connection factor for a Romanian company that wants to come to the United States. Likewise for an American company when it comes to Romania, the first step it takes is to become an AmCham member, for the same reasons.

Reporter: What financing solutions could a Romanian company access when entering the US market?

Elias Wexler: It depends on how a company decides to come to the United States. Outside of setting up an entity in the United States, I don't think it really has funding solutions. But if he sets up his own organization here, he will be able to find some form of financial support, through the state government and then through the federal government.

Reporter: What role could the Romanian Government play in providing support to Romanian companies that want to enter the US market?

Elias Wexler: I don't think that the Romanian Government can be directly involved in supporting a Romanian business that wants to expand in the United States.

In my opinion, the Romanian Government should do a few things. For example, they should support organizations like ours to the same extent that the United States supports AmCham. That's because, in turn, we support private businesses that want to come to the United States. I would like the Romanian Government to promote the country much more than it does now.

I would like to get to the point where, in any city in the United States, people know what Romania means. Seeing ads about Romania everywhere in the United States, both on TV and in the media. A more intensive promotion of the country by the Romanian Government would be beneficial for Romanian private businesses. I also think that the Romanian Government should organize at least one or two events a year, in which to promote the Romanian industry and companies in the United States. The same in Europe. It is time for Romania to be promoted more, because the country has become better known in the United States, in the context of the problems in Ukraine. Romania is now seen as a strong ally of the US and NATO. It is a first-line country, and all this has created an environment in which the Romanian Government can create a much more positive image for the country.

Reporter: Have you tried to communicate with the Romanian Government?

Elias Wexler: I've tried several times, especially under the current president, but unfortunately I've had very little luck. There were several delegations that came from Romania for business in the United States, sponsored by the Government, but all, without exception, were a failure. They claimed they were in the US to develop business, but in reality they only came because it was an opportunity to come here for free. This is something that should stop. I also think the government should find a way for the people working in the consulates, especially the economic section, to be better informed about the United States market.

Reporter: What advice do you have for Romanian companies that want to enter the US market?

Elias Wexler: First of all, I would advise them to become a member of the Romanian-American Chamber of Commerce and to really understand the potential of the market in the United States. To understand how big it is, what wonderful opportunities it offers; to learn to appreciate it. Therefore, do your homework to be successful. We are here to stand by them and help them succeed.

Reporter: Thank you!