Periodic Review of Centers

A. Written Report Summary:

1. Purpose: The MTWTC is a licensed center, part of the World Trade Centers Association of more than 300 trace centers in 80 countries. The University of Montana holds the license to operate a World Trade Center program of trade development, export enhancement, education and training in international trade matters for an area that includes the State of Montana and surrounding unserved areas. New licenses currently cost $250,000 to obtain.
The mission of the World Trade Centers Association is to support the establishment and successful operation of individual World Trade Centers as part of a worldwide alliance of World Trade Centers, which enhances stability, peace, world trade and development, leading to economic growth.
The WTCA's founding principles are as applicable today as they were more than three decades ago.
· To encourage the expansion of world trade;
· To promote international business relationships and understanding among nations;
· To foster increased participation in world trade by industrializing nations;
· To create and encourage mutual assistance and cooperation among members; and
· To promote and further the concept of the World Trade Center.

2. Objectives:
MWTC’s objectives are to provide international economic development assistance to Montana area companies, to provide experimental learning opportunities to university students, to increase the capacity of Montana area businesses to export their products and services, and to increase foreign investment in Montana.

1. Activities:
Contingent on funding, MWTC anticipated activities include:

§ Trade missions

§ Trade shows

§ Company consultations

§ Experiential learning for students

§ Management of grants related to international business development

§ Education and training on product and service export and export enhancement

§ Public education on world trade and commerce related matters

§ Montana economic development related projects

§ Technology application for international trade

§ Management of a new statewide initiative entitled EnterpriseMontana

2. Other organizations involved:
MWTC works with all appropriate federal, state, local and University organizations that relate to our objectives. In addition, MWTC is governed by an advisory board (list of members). MWTC is responsible for maintaining active membership status with WTC’s association headquartered in New York.

3. Reporting line:
The MWTC is currently operated under a 2 year management contract arrangement. The Contractor, Global Development Services, Inc., reports jointly to the Dean of the School of Business Administration where the MWTC is domiciled and the VP for Research and Economic Development. MWTC also works closely with an Advisory Council which is selected by the MWTC but offered appointment by the Governor

4. Relationships with academic units:
MWTC uses students in all aspects of its work, including market research and analysis, trade mission planning and coordination, business report / plan writing and administrative assistance. Since 1987 more than 400 students have worked in some capacity through our practicum programs, internships, paid employment, work-study and participation in Management 465 World Trade and Commerce course, which is required for an international business degree focus. The course is taught by the MWTC Executive Director, Arnold Sherman. He has also taught, lectured and assisted with other academic programs on campus including the Law School, Mansfield Center and Continuing Education.

5. Similar programs:
There is no similar program in Montana or the region.

6. Budget: see Center Review Budget Form

Action Plan Narrative supplement

§ Membership
MWTC membership, comprised of companies that are actively involved in receiving services, has averaged approximately 50 companies annually with a 30% turnover. GDS will aggressively seek new members particularly in surrounding states.

§ Fund-raising event
GDS will initiate an annual event, perhaps a gala dinner honoring the International Leader of the Year, with corporate sponsorship, designed to raise $12,500 in excess revenue over expenses, annually.

§ Revenue from Member Services
GDS will continue to provide value added services to companies on a fee for services basis targeted to average $2,500 from 10 companies yearly.

§ Montana Related Contracts
GDS will maintain current contracts with MMEC and INSA, while continuing to pursue EDA and other similar contract for service relationships.

§ University System
GDS would require maintaining the current $25,000 yearly financial support from SOBA and increase contract fees from UM from $48,000 per annum to $105, 000 per annum.

§ Additional Funding
Currently there is appropriation requests submitted in several funding bills by Congressman Rehberg and supported by Senator Burns and Baucus. GDS has applied for a continuation of the Market Development Cooperative Program grant to U.S. Department of Commerce for $350,000 over two years, which we will not receive notice until fall. Per current contract language, GDS actively monitors sources for new grant related funding opportunities.

B. Review and Approval Process

2. The Faculty Senate through its Chair, ECOS, and Committees as appropriate shall recommend continuance or discontinuance by vote.

Review in terms of Scope as stated in academic policy 100.0
To provide instruction, scholarship, or service to the University, state or world by:

(1) focusing attention on an area of strength and/or addressing a critical issue.

The Montana World Trade Center’s objectives are to provide international economic development assistance to area companies, to provide experimental learning opportunities to university students, to increase the capacity of area business to export their products and services, and to increase foreign investment in Montana.

The mission of the World Trade Centers Association is to support the establishment and successful operation of individual World Trade Centers as part of a worldwide alliance of World Trade Centers, which enhances stability, peace, world trade and development, leading to economic growth.

(2) facilitating collaborative, multi-disciplinary endeavors to combine resources from several programs or institutions to address issues of common interest.

The Montana World Trade Center uses students in all aspects of its work, including market research and analysis, trade mission planning and coordination, business report/ plan writing and administrative assistance. Since 1987 more than 400 students have worked in some capacity through our practicum programs, internships, paid employment, work–study and participation in Management 465 World Trade and Commerce course, which is required for an international business degree focus. The course is taught by the Montana World Trade Center Executive Director, Arnold Sherman. He has also taught, lectured and assisted with other academic programs on campus including the Law School, Mansfield Center, and Continuing Education.

Review in terms of the University’s mission.

§ Comments: The Montana World Trade Center appears to be academically sound. It provides practicum programs, internships, paid employment, work-study opportunities, and a 400-level course in the Management program titled “World Trade and Commerce”.

§ Does ECOS/Faculty Senate consider this center controversial? No

§ Is the relationship with academic units beneficial? Yes

§ Is the program revenue neutral or does it consume more resources than it generates?
The Montana World Trade Center budget projections show an estimated decrease in expenditures over the next five years. The projected decrease appears to be due to the absence of Project Manager/Project Director expenses in years three, four, and five. The budget also indicates the loss of three external funding sources: the PRESTO grant, the MRBA grant, and revenue from the Montana Governor’s Office. The PRESTO program will provide some income-based revenue in year one, but this income is not projected for the subsequent four years. The UM General Fund contributes between 11.8 and 19.3 percent of each annual budget over the five-year period.

The Montana World Trade Center is currently operated under a management contract with Global Development Services, Inc. Global Development Services plans to increase their annual service contract fee from $48,000 to $105,000. According to Arnie Sherman, the Director of the Montana World Trade Center and owner of Global Development Services, only $48,000 of the $105,000 fee will come from UM’s General Fund. The balance will be sought through grant funding.

The Montana World Trade Center has successfully acquired a $300,000 funding source through the efforts of Congressman Dennis Rehberg and Senator Conrad Burns. This funding stream is due to become available in September, 2006.

If so, is the use of University resources justified? Yes

§ Is the entity making progress toward objectives? Yes

Recommendation: The Executive Committee of the Senate recommends continuation of the Montana World Trade Center with the caveat that UM Administration assures there exists no conflict of interest within the relationship between Global Development Services, the Director of the Montana World Trade Center, and the Montana World Trade Center.

Justification: The Montana World Trade Center appears to be performing the tasks outline in its mission statement.