INTRODUCTION


U.S. EXPORTS AND THE ECONOMY

Exports have become an engine of growth for the U.S. economy. Between
1986 and 1990, U.S. merchandise exports contributed more than 40 percent
to the rise in Gross National Product (GNP). In 1990 alone, nearly 84
percent of U.S. GNP growth was due to exports, which totaled a record
high of $394 billion.

The result of the increase of U.S. exports in the late 1980s is a
significantly lower trade deficit and, more important, 2 million new
jobs attributed to exports. The U.S. Department of Commerce estimates
that for every $45,000 in export sales one job is created _ more than
double the rate of jobs created by domestic sales.

Today, many firms export occasionally but want exporting fully
integrated into their marketing plans. Others export regularly to one or
two markets and want to expand into additional countries.

There is tremendous potential for U.S. business to become more active in
exporting. Just 15 percent of U.S. exporters account for 85 percent of
the value of U.S.-manufactured exports. One-half of all exporters sell
in only one foreign market. Fewer than 20 percent of exporters _ less
than 3 percent of U.S. companies overall _ export to more than five
markets.


TEN KEYS TO EXPORT SUCCESS

There is profit to be made by U.S. firms in exports. The international
market is more than four times larger than the U.S. market. Growth rates
in many overseas markets far outpace domestic market growth. And meeting
and beating innovative competitors abroad can help companies keep the
edge they need at home.

There are also real costs and risks associated with exporting. It is up
to each company to weigh the necessary commitment against the potential
benefit.

Ten important recommendations for successful exporting should be kept in
mind:

1.   Obtain qualified export counseling and develop a master
     international marketing plan before starting an export business.
     The plan should clearly define goals, objectives, and problems
     encountered.

2.   Secure a commitment from top management to overcome the initial
     difficulties and financial requirements of exporting. Although the
     early delays and costs involved in exporting may seem difficult to
     justify in comparison with established domestic sales, the exporter
     should take a long-range view of this process and carefully monitor
     international marketing efforts.

3.   Take sufficient care in selecting overseas distributors. The
     complications involved in overseas communications and
     transportation require international distributors to act more
     independently than their domestic counterparts.

4.   Establish a basis for profitable operations and orderly growth.
     Although no overseas inquiry should be ignored, the firm that acts
     mainly in response to unsolicited trade leads is trusting success
     to the element of chance.

5.   Devote continuing attention to export business when the U.S. market
     booms. Too many companies turn to exporting when business falls off
     in the United States. When domestic business starts to boom again,
     they neglect their export trade or relegate it to a secondary
     position.

6.   Treat international distributors on an equal basis with domestic
     counterparts. Companies often carry out institutional advertising
     campaigns, special discount offers, sales incentive programs,
     special credit term programs, warranty offers, and so on in the
     U.S. market but fail to make similar offers to their international
     distributors.

7.   Do not assume that a given market technique and product will
     automatically be successful in all countries. What works in Japan
     may fall flat in Saudi Arabia. Each market has to be treated
     separately to ensure maximum success.

8.   Be willing to modify products to meet regulations or cultural
     preferences of other countries. Local safety and security codes as
     well as import restrictions cannot be ignored by foreign
     distributors.

9.   Print service, sale, and warranty messages in locally understood
     languages. Although a distributor's top management may speak
     English, it is unlikely that all sales and service personnel have
     this capability.

10.  Provide readily available servicing for the product. A product
     without the necessary service support can acquire a bad reputation
     quickly.


USING A BASIC GUIDE TO EXPORTING

A Basic Guide to Exporting is designed to help U.S. firms learn the
costs and risks associated with exporting and develop a strategy for
exporting. The 10 keys to export success that have been mentioned will
be explored, along with ways to avoid the pitfalls and roadblocks that
may be encountered. Five appendixes are provided for reference: I,
Export Glossary; II, Directory of Federal Export Assistance; III, State
and Local Sources of Assistance; IV, U.S. and Overseas Contacts for
Major Foreign Markets; and V, Selected Bibliography.

This guide discusses what decisions need to be made and where to get the
knowledge to make those decisions. Although it is a publication of the
U.S. Department of Commerce, it directs readers to sources of assistance
throughout the federal and state governments as well as the private
sector