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Date: 2016-08-12

Michigan Generates Plenty of Dough from International Trade

Innovation can happen anywhere and much of it takes place beyond metropolitan centers. Michigan, for example, is a cohesive state when it comes to promoting its exports and thinking globally.  The state is still recovering from the hollowing out of the automobile industry, the implosion of Detroit's finances, and the 2008-09 recession, all good reasons for federal, state and local government agencies to work together.

Spring has come late to the farmland in the western part of the state, and business students and the local companies they study have gathered to share stories and to sample beverages from the yeasty micro-brewery industry. One of the companies attending the event is now a global brand. Domino’s Pizza, whose first store opened in Ypsilanti, circa 1960 has franchises everywhere, including 800 stores in India, with China not far behind as consumers there discover the joys of takeout and delivery within 30 minutes.

A student asked the Domino’s executive what the corporate suite has learned from its overseas ventures.  The answer is--plenty.   Franchisees are encouraged to create new successful menu items that are proven highly popular across the U.S. and then exported to locations around the world.

The process works well in reverse. Domino’s in Turkey created the chocolate lava cake, a confection that quickly spread to the rest of the country, across Europe and to the U.S. where large quantities are now sold.

Ideas are eagerly sought throughout the world, but Localization is the key to success.  For example, on top of the standardized dough and tomato sauce, a Vietnamese favorite, dried shrimp and a quail egg are not likely to be embraced in Ypsilanti.

Domino’s is also investing heavily in its global online presence and IT.  One third of sales are now online, and customers can order pizza via Amazon and eBay.  Dominoes jumped on the city buses in Nairobi, Kenya because they offer free Wi-Fi, which students use to stay connected and view offers from local retailers.

In Michigan, the hunt for global opportunities is shifting to a higher gear.  Spartan Motors is selling its fire trucks in Peru.  Foreign investment is being courted to scrape off some of the rust in the Rust Belt. Airport officials in Lansing, the state capital, are hoping to land a Chinese airline that wants to avoid the crowded skies of nearby Chicago. Michigan State University is attracting some of the world's smartest young people generating $252 million a year in economic activity for the local economy.  Students will return to visit friends and tend to bring parents with them.  Many students stay on to work in local companies.

All of this activity will not replace the once dominant auto industry. However, as Michigan is discovering, when done right, trade is a gift that keeps on giving.


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