Gov. Janet Napolitano believes despite the current state of the American economy, Arizona is well positioned for international business.

In her International State of the State speech Oct. 6 at the Westin La Paloma Resort and Spa, Napolitano laid out the state’s strengths and challenges facing international business in the years to come.

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"Many people are surprised to learn how international Arizona already is," she said. "Still our future depends on the future growth of our international presence."

The governor said things look good in that direction as exports are currently up 8 percent over last year.

"The way the dollar is right now has opened opportunities for exporting and we are finding those opportunities," she said. "But we need to figure out what our international brand is going to be so we can create an impression in the world.

"We’re moving from a housing based economy to a 21^st century knowledge-based economy," Napolitano said talking of the growing industries of solar, aerospace, avionics, and optics. "There’s no reason Arizona shouldn’t be the Persian Gulf of solar power."

One opportunity when discussing potential trading partners is South America.

"South America is relatively untouched when it comes to trade," Napolitano said. "We are geographically positioned to be the leader in trade with them.

Challenges facing the state in the coming years include money, education for the next workforce and expanding our infrastructure.

"We had an operating budget of $10 billion," she said. "Over the last couple years we had to cut out around $3 billion. As we tighten our belt we have to stay focused on the future and make sure we can still position ourselves where we want to be. We need to be strategic and targeted."

Napolitano doesn’t want to cut any more education funding because she said "we need to be able to supply workers to fill these high-tech jobs we are creating. My number one priority is to protect education funding."

Joe Snell, president and CEO of Tucson Regional Economic Opportunities thinks the region and state are moving forward correctly.

"We are facing tough times right now, but I think we are tackling it the right way and positioning ourselves for growth."

The event was sponsored by Global Advantage, an international program of the University of Arizona that seeks to build international relationships through partner cities and growing Tucson’s and Arizona’s international presence.