The Longest Street

International trade, the exchange of goods, services, and technology between countries, carries with it not only the seeds of economic health, but today, more than ever, it generates that mutual respect so necessary for world peace. For many centuries now, the nations of the Middle East and Asia have realized the need for trade. While newer nations like America had much to learn in a short time. We learned quickly, and by 1900, had reached maturity as a nation. Or certainly close to it. Only after World War I, were we finally out of debt ourselves. In the roaring 20s, we were reluctant to trade with other nations. We weren't willing to buy their goods. Instead, we loaned them money. We were in even less of a buying mood in the 30s. Few dollars went abroad in those days, while America piled up most of the world's gold at Fort Knox. By 1940, the United States had withdrawn almost completely from world trade. After all, we were self-sufficient. Some people thought those new synthetics would make raw materials unnecessary. But when World War II brought a shortage of most raw materials, we began to realize our own goods would have to be supplemented. It was then the United States began to change its mind about importing goods from other nations. After the war, another factor accelerated this change. The new highs reached in production of peacetime consumer goods meant that American businessmen had to sell their wares overseas. You just can't sell somebody more than he can pay for. Every dollar we want a foreign country to spend on American goods has to come first from Americans themselves, either as payment for imported goods and services, as overseas investments, or as government aid. So now we're importing more. Not just the raw materials we've always needed, but manufactured goods as well. These imports are sending more dollars overseas, creating more demand there for American products than ever before. The Earth. It measures nearly 25,000 miles around its equator, 8,000 miles from top to bottom, and is a remarkably accurate self-winding timepiece. It has not been easy for man to adjust to the awesome size of his world. One reason being that the curvature of the Earth creates a blind spot in his vision. From the beginning, he has been straining to see beyond that horizon. Through the years and over the centuries, man has looked and wondered and grown until today, he stands taller than the Earth itself. He's able to see beyond 100 horizons in a single glance. And what he sees, he wants. And what he wants, he gets. Kentucky built typewriters in Japan. Japan built tape recorders in Kentucky. A German camera in California. We send a new automobile to Italy, and behold, we get Sophia Loren in return. Throughout the world, the tide of rising incomes is sweeping away ancient barriers of bias and fear, making possible an unprecedented expansion of world trade in which the American businessman can share. It goes by ship, and it goes by plane. But no matter how it is shipped, the most wanted cargo in the world today bears this stamp. New markets lie beyond one's line of sight. New opportunities for profits await over the horizon. It used to be trade between the countries of Europe was restricted by walls of import tariffs. Like the walls of Jericho, it would take more than just the blowing of horns to bring these repressive walls down. The shout of the people was needed. The liberation following World War II gave new volume to the voice of the European people. They clamored for a better life. They looked to America and saw what wonders a continent of industrious people free trading with one another could produce. So in the spring of 1957, representatives of six European nations gathered in Rome. Here in the country where Christopher Columbus was born, six modern nations, the Netherlands, Belgium, Luxembourg, West Germany, France, and Italy, signed the historic Treaty of Rome, which like the sailing of the Santa Maria 500 years before, was destined to cause momentous shifts in the trade routes of the world. The Treaty of Rome established the European Economic Community, better known as the Common Market. The Common Market allows for an eventual free flow of goods across the national boundaries of each of the six member nations, along with the harmonization of social, monetary, and fiscal policies. From this to this in less than a generation. The economic recovery of Western Europe was the marvel of the world. Unified free trading areas similar to the Common Market, began emerging all over the free world. The free market is an American innovation. And the United States encouraged the establishment of these free trading areas. But the trouble was, while reducing internal tariffs among its own members, each area retained an external trade barrier, setting it apart from all the others. This hampered economic growth and endangered free world unity. It was clearly in the interest of the United States to reduce this growing trend toward regionalism. So on October 11th, 1962, the American Congress passed the Trade Expansion Act. This act permits the President of the United States to seek agreement on a general reduction of world tariffs. The Trade Expansion Act stimulates the economic growth of the United States by reducing restrictions against American goods. It enlarges our foreign markets. Markets for my product? Could be. Well, I don't know. I've toyed with the idea of exporting, but it all seems so involved. Take the problem of locating new markets, for instance. You have the same problem here in the States. Yeah, but it's different. Is it? Look, the name of the game is business, and you play it for profits, right? Right. It's a universal game. All you have to do is learn the local ground rules. We have 300 American embassies and consulates abroad. Their commercial officers are continuously feeding back business and economic information. They investigate virtually every market in the world. At your local Department of Commerce field office, you can meet a man who has all this marketing information at his fingertips. He's an international trade specialist, and his full-time job is helping American businessmen, such as yourself, increase profits through exporting. We receive a variety of information reports each month. From them, you can tell how American-made commodities are selling in most every country of the world. This information will help you determine the markets of greatest potential for your particular type of product. When you find a market that looks promising, we can furnish you with details on its geography, how the population is made up, standards of living, its government and the political structures, what transportation facilities are available, and the economic conditions of the area. You tell us what you need to know, and we'll make every effort to get the information for you. Also, we can provide you with names of potential sales representatives or distributors in the area. And where needed for a modest fee, we'll have a foreign service commercial officer make an actual on-the-spot search. He'll attempt to locate several import firms for you who meet your requirements and who express an interest in doing business with you. We can also help you determine your local competition. The United States Department of Commerce, eh? There are US Department of Commerce field offices in 42 American cities, like the one near you. What about collections? How do I know I'll get paid? With a domestic customer, I know I can check his credit. I can find out his reputation. Down at the bank, I can Down at the bank today, you're likely to find an international department set up expressly to support the American businessman in his world trading. Many tongues, yet all speaking the same language, the language of business. You'll probably find your own banker can make the same credit checks and reputation analyses on foreign firms as he now does with your domestic accounts. Most likely, he's equipped to handle all the financial arrangements necessary for exporting. And he can arrange for insurance to protect you against both credit and political risks. The international department of your local bank is also a good place to pick up leads. Some of these look very interesting. How do I compete with the lower wage rates overseas? They're not so low as you think, not anymore. With rising production, wage levels are equalizing throughout much of the world. And in many foreign countries, it takes 2 hours to produce what in America we turn out in one. American quality, the made in USA label, gives you a built-in advantage over competitors of other countries. Design, value, quality. Aren't these the things that really sell your product here or anyplace else? Well, I do turn out a pretty good product. All right. The Department of Commerce helps me locate new markets. My banker helps to arrange the financing, and my natural ability turns out a superior product. Now, how do I get all that overseas? There's still the documentation, there's shipping, and there's correspondence. You know, I get lost even trying to follow those subtitles on foreign movies. Why don't you see the fellow in charge of world trade down at your local Chamber of Commerce? He can probably give you the names of several people who could give you an assist. Basically, there are two methods of getting into the export field. One is employed by the major companies in this nation, in which a manufacturer uses his same merchandising and advertising skill as he does domestically. Trained help is available today, and there are service organizations such as freight forwarders, insurance brokers, banks, and steamship representatives to help you. In this method, your success depends on your own capital, initiative, and ability. There is a second method of using export distributors or combination export managers. They assume full responsibility for selling your product worldwide or in selected markets. This method requires little capital outlay and often puts a firm's product on the world market quickly. This is because of previously established overseas distributors handling allied or similar products. And here at the Chamber, we can advise you and furnish names of firms to make your entrance into world trade relatively easy. Using either method, there is a great deal of knowledgeable assistance available. For example, uh here is a list I'd like you to take with you. I'm delighted that you came into the Chamber. I can hire people to read those subtitles. And another thing, many manufacturers today are making their overseas shipments by air. Most any market is no more than 48 hours away. You jet transports can carry 40 tons of cargo each. And international air carriers often maintain their own marketing services to help you find buyers overseas. To help you test new markets, the Department of Commerce operates permanent exhibition centers in six of the commercial capitals around the world. Here you can meet interested prospects and demonstrate your product under ideal conditions. You can talk over your possibilities in quiet, well-appointed surroundings. Commercial orders can be written and complete sales arrangements made here. US Trade Centers, another of the many marketing aids available to the exporting American businessman. No, that's not necessary, Miss Jones. A rough draft will be fine. Uh look, I'll be in the conference room for a while, so would you please hold all calls? Thank you. Talk to the international specialist at the Department of Commerce field office. Ah, good. Glad to see you. He has marketing information gathered from hundreds of foreign service offices around the world. Hello. My own banker can handle the financial arrangements. Hello, Harry. My local Chamber of Commerce has names of private firms who can assist. Glad you could make it. He has names such as the freight forwarder and an export management firm. Most transportation companies these days maintain their own marketing services. How are you, Captain? Well, you're probably wondering why I've called this meeting. I've been doing some thinking about the export market, and I've come to a decision. Free world international trade is the marketing phenomenon of our times. American-style free competition now extends abroad, making Main Street, USA, the longest street in the world.