Missing Markets

In Paris, Kentucky bourbon is sometimes to be found at a price, because U.S. distillers a few years ago set up the Bourbon Institute (it is not a university) to promote exports. In Tokyo, the Japanese can buy Munsingwear undershorts, though U.S. textilemakers complain that the Japanese underprice them around the world. The Chun King Corp. of Duluth, Minn., recently began shipping chow mein in cans to Formosa. In less bizarre ways, too, some resourceful U.S. businessmen are expanding exports, which in the second quarter hit $5.5 billion, up 10% from 1961's second quarter. June was the best month for exports in five years.

Though the U.S., with its vast domestic market, need never say "Export or die" as the British do, exports are becoming increasingly important with U.S. industry producing at only 85% capacity. Despite the increase in exports, the U.S. share of world trade slipped from 20% in 1950 to less than 17% last year.

Begging Business. It is not such obvious obstacles as tariffs or higher U.S. wages that do most to prevent sales abroad. As exporters of everything from road builders to tie clasps have learned, U.S. products often sell well overseas because of design, quality, speedy delivery, or simply because the goods are "Made in U.S.A." But businessmen don't do as well as they should in foreign markets, says the Commerce Department, because of a failure to use their proudest skill: salesmanship. "Out of 300,000 U.S. manufacturers, there aren't more than 15,000 who are doing anything at all about foreign trade," complains Commerce Department Export Director Edward Scriven. To maintain U.S. trade centers in London, Frankfurt and Bangkok, says he, "we have to canvass 3,000 to 4,000 businesses to find 50 that will exhibit, largely at Government expense."

Many businessmen simply ignore foreign requests for information and prices on their products. The Commerce Department had to plead with one St. Louis machine-tool maker to answer repeated inquiries from a British company (in the end, he made a sale). One machinery man- ufacturer in the state of Washington still stubbornly refuses to answer an inquiry from Australia. And only after Commerce Department urging did a Minneapolis firm reluctantly agree to sell its special lubricating oil to Nigeria. Too often foreign trade seems too complicated, too marginal and too risky.

Selling Points. To ease apprehensions that foreign customers will renege on bills, the Export-Import Bank and 71 insurance companies have formed the Foreign Credit Insurance Association to sell insurance against most risks at low rates. Pan American World Airways, which wants to step up its air-cargo shipments, is one of several international firms ready to put businesses in touch with established sales agents abroad. The Commerce Department supplies inquirers with a long list of potential foreign buyers, counsel on how to sell them and how to snip international red tape, and news that there are likely foreign markets for--among other things --popcorn and plastic handbags.

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