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.