M
routine with those concerns whose business i t is to assist Vnited States manufacturers in exporting goods. Exporters, particularly those located inland, frequently employ freight forwarders to attend to the details of clenrance, cargo space, delivery of goods to vessels, certificates of origin, antl other formalities connected with the delivery of goods aboard ship. The names of exporters, forwarders, and organizat,ions offering services in the field of foreign trade can be found in various directories, two of which pre: Foreign Trade Associations in the United States (available ivithout charge from-the Bureau of Foreign and Domestic Commerce, Vashington 25, D. C.) and Foreign Trxle-Basic Information Sources (available on request to the Comniercial Intelligence Division of the Bureau of Foreign and Domestic Cornmeree, Kashington 25, D. C., and also Department of Cornmerce field offices). Tariffs, foreign government, regulations, antl United States regulations have to he taken into consideration. The local duties on imported goods in many instances represent a substantial portion of the cost of manufacturers’ goods to the consumer, and this has a direct hearing on his ability to compete in a given market. I t is important that the manufacturer understand his responsibility and liability under the laws of the land in which he is trading. Laws governing the collection of debts, the protection of property, and bhe registration of trade-marks should be known. The successful prosecution of the war made it essential for the United States to impose colitrols over foreign trade, financial transactions, communications, and shipping. These are constantly being adjusted to meet current conditions. A careful study and thorough understanding of these regulations is a “must” for every foreign trader. Many factors enter into the cost of exporting. Foreign trade cannot always be connected o n an f.0.b.l factory basis. It might be necessary to quote rates f.a.s.’ United States or even c.i.f.1 port of destination. This naturally requires that means of collecting be established. T h e following factors are recommended as considerations in a cost analysis for foreign trade: packing, transportation, documentation fees, selling, registration fees, insurance, discounts, commissions, advertising, terms of payment abroad, trade-marks, and licenses. The United States Government has ample facilities for assisting the prospective foreign trade. The Bureau of Foreign and Domestic Commerce, Department of Commerce, will supply, on request, statistics, market surveys, names of selling outlets, sources of raw materials, information on credit, collection, and exchange conditions, tariffs and local regulations, laws pertaining to commerce, credit terms, and prevailing trade practices, competition, local tastes, buying power, and similar data concerning foreign trade analysis and promotion. Matters pertaining to economic studies may be re-
chemical manufacturers have expanded their production facilities during the war. Realizing that the domestic market will be unable to ahsorb the increased output of the chemical industry. many concerns for the first time are exploring the possibilities of selling their goods to foreign countries. The difficulties entailed in establishing foreign trade are not generally recognized, International good-will organizations, trade groups, and semiofficial agencies often point enthusiastically to the utlyantages of foreign trade, but neglect to mention the complicntionp which may arise when one enters this phase of business without being fully preparetl. Present day Feller-market conditions are a1)normal and should not be taken as a measuring stick to determine \\ here :inti in n-hat quantities goods ran be sold in the fiitiirc. A s soon as conditions have returned to iioriixil, we must expect competition from within the countries to which we are now selling. The prospective foreign trader, therefore, will have to plan on a lorig range basis. He must be convinced that if he goes into the foreign field, it will be on a permanent basis. He rllust be willing t o put up with many difficulties a t first and, above all, be Iirepareti t o support his program wholeheartedly. The fact that a manufacturer has faith in the fundamental good quality and salability of his Ixoducts does not entitle him to neglect the analysis an(l evaluation of essential factors \vhic11 may affect the intro(luctiot1 of his prodnets to foreigri markets. Before a n,:inufacturer attempts to engage in foreign trade, Ile shoul(1 nssure himself that he has sufficiently exploited the clomestic markrt. Foreign trnrle usually involves acltlitional w)l.k uncl risks which slioulcl not be underestimated. The wle of goods to foreign couiiti,iw almost invariably cslls for (,I anges in product specific:itions sn(1, sliiult’aneously, the reSince m i n y foreign coun\.$.mping of procluction farilitie elwit units of weight antl tries use the metric system, measure have to be used. Also, einpty containers are often re-used for other purpose> :ihroad, and the foreign buyer, therefore, is inclined to purchme his goods from a source nhich supplics h i with a package of metric dimensions. The product to be sold in foreign trade must be in constant demand and must comply with the customs, manners, habits, buying power, aiid living conditions of the country in which it is to be distribute(!. The application of American standards and taste to goods sold abroad may be possible at the present time because of the general shortage of merchandise. When conditions return to normal, however, foreign countries nil1 demand t h a t we respect their way of living by producing our goods in a form n.hich caters to their tastes. This will naturally involve special product design, different methods of ndvertising, and the adoption of sales policies foreign to us. Foreign trade may also make i t zlivisable to have a middleman in the United States who has the know-hoiv of the country in which the goods are to be sold. The novice in foreign trade will find that many of his most perplexing prn1)iems are OST
1 f.0.b.. freight on board; f.a.s., free alongside ship: o and freigat.
(Continued a page 88) 87
ferred to the Bureau’s Division of International Economy. Commodity information can be obtained through the Division of Industrial Economy. The Division of Commercial and Economic Information provides prompt and easy access to existing reports relating to various business problems, including those of foreign trade. The inquiry and Reference Service of the Commercial Intelligence Unit has extensive files containing thousands of useful abstracts, digests, studies, and references pertaining to international trade. This unit also provides classified lists of foreign importers, dealers, agents, industrial firms, and local exporters of native products. Infoimation ‘can be supplied promptly concerning a firm’s method of operation, reputation, size, number of employees, capital, annual turnover, ownership or management, repre+entatives or principals in the United States or other countries. The Commercial Intelligence Unit is also the government source of information concerning political characteristics of foreign firms, “black lists”, and wartime trade.
*J The following government publications are recommended for study: Export and Import Practice. Trade Promotion Series 175. 310 pages. Bureau of Foreign and Domestic Commerce, Washington 25, D. C. 1938. 40 cents. Foreign Commerce Yearbook. Burcau of Foreign and Domestic Commerce, 1939 and 1942. $1.00. Foreign Commerce and Navigation of the United States for the Calender Year 1941- 1944. Superintendent of Documents, \Vashington 25, D. C. $2.50. Foreign Trade Reports. Bureau of the Census, bvashington 25, D. C. Foreign Trade Associations in the United States. Bureau of Foreign and Domestic Commerce. 1945. No charge. Foreign Trade-Basic Information Sources. Commercial Intelligence Unit, Bureau of Foreign and Domestic Commercr. 1944.
Nongovernment publications &hich might be of interest to the prospective trades follow: How to Import and Export. Postwar Foreign Trade Bulletin 1, World Trade Department, Los Angeles County Chamber of ComJncrce. 1944. KO charge. Exporters’ Encyclopedia. 1800 pages, maps. Published annually by Thomas Ashwell and Company, Inc., 20 Vescy St., Sew York 7, N. Y . $20.00. Phelon’s New York City Export Buyers List. Published annually by J. S. Phelon and Company, 32 ‘C-nion Square, S e w York, N. Y . $5.00.
The writer would like to call attention to a new publication, The Industrial Engineer. This magazine is published monthly by the National Industrial Engineering Society (1 North LaSalle St., Chicago 2, Ill.). It contains feature ,articleb written by industrial engineers well known i n the chemical industry, on various phases of management. Last month’s issue covered wage incentives, job evaluation, better trained personnel for industry, delegation of authority, overspecialization, and labor-hour budgeting. It is edited by William P. Hinkel, who started the publication as a hobby. H e is supported by a staff of volunteers who contribute their time free of charge to make this paper a success. Our best wishes for the continued success of The Industrial Engineer.
88
