The Latvian Chamber of Commerce in the Americas (LatCham) will state the obvious for an organization dedicated to promoting trade between the US and Latvia: "We believe that the US market offers the greatest long term business opportunity for Baltic firms". The US market is a smart investment and will outperform any other investment in the long run.

LatCham's overseas trips often provide us the opportunity to hear about the "Urban Myths". One such myth is the difficulty related to coming into the US Market. For example we often hear that the US markets are too far; they are too difficult and too complex navigate; that it is too difficult to get contracts, find business partners, identify distribution channels, that the firms are too big, and the list continues.

We do not agree with these conclusions. The facts do not support these urban myths. What the US markets and US businesses do demand are sound business fundamentals. Sound fundamentals include a customer focus, sound business direction and plans, mature internal processes, a commitment to employees, transparency, creative marketing and communications, and leveraging information technology.

On Sunday, December 14, 2008, James P. Moore Jr., a professor at Georgetown University's McDonough School of Business and the director of the school's Global Leadership Initiative wrote an article entitled "5 Myths About Our Sputtering Economy" in the Washington Post.

In the article, Mr. Moore identifies 5 key myths, like the Urban Myths we hear at LatCham, about the US economy that Baltic business leaders should carefully consider when planning their international business strategy. I have identified some of the highlights from Mr. Moore's article.

Myth 1. The United States has lost its competitive edge.

Mr. Moore says "No it has not". Mr. Moore identifies many sectors of the economy where the US is number one including innovation, technology, higher education, worker training, and others. He points to the Swiss-based World Economic Forum, which has released its latest global competitiveness report, and as Mr. Moore points out, the US was on top.

Myth 2. The United States long ago gave up its global lead in manufacturing to China.

Mr. Moore points out, "Not yet". Although U.S. production has been lowered, it still produces almost 25% of the world's output in pharmaceuticals and aerospace (according to the World Bank).

Myth 3. The U.S. economy is about to be eclipsed by China's.

Mr. Moore says, "Not for some time to come". He cites World Bank estimates that the U.S. contributed $14 trillion, or 25%, of Global GDP ($56 trillion). China's economy only produced a little more than $3 trillion.

Myth 4. The United States is no longer the economic engine of world trade.

Again Mr. Moore says, "Not true". Although the U.S. has built up large trade deficits, the U.S. still buys "far more products from overseas than either China or Germany" and "in terms of exports, all three countries are closely bunched together, at just over $1 trillion each".

Myth 5. The United States is no longer an attractive market for investment.

Mr. Moore says "Hardly". Mr. Moore points out that investments made in the U.S. are protected, enjoy solid returns, and operate in a transparent environment. Mr. Moore acknowledges that the liquidity crisis originated in the U.S., but foreign investors have returned to the safety of U.S. markets. According to the World Bank and International Monetary Fund the U.S. attracted " more than $2 trillion worth of foreign direct investment last year, according to the World Bank and the International Monetary Fund. (The United Kingdom, Hong Kong and France -- the next three top finishers -- each registered just over $1 trillion.)"

A compelling set of facts. Thank you Mr. Moore.