Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: CHAPTER II EXPORT TRADE AS INSURANCE "We seek foreign trade because we know that its attainment . . . is vital to all within the nation's borders."—C. K. Mclntosh. Export Trade Is the Only National Insurance. Overseas Sales Provide Safety Factor Against Periods of Domestic Depression. In Panic Years at Home the Exporting Manufacturer Reaps Greatest Reward. Exporting Protects the Individual Enterprise, the Community and the Nation. Advantages Which Accrue to Exporters in Their Domestic Fields. World-wide distribution is the sole insurance of real value against times of domestic financial depression. It is practical business insurance to divide the risks of credit and depression over the widest possible territory. Sane selection of foreign customers is based not on placing all foreign eggs in the basket of a single foreign market, but on distributing these in such cities as Yokohama, Shanghai, Hong Kong, Sydney, Melbourne, Bangkok, Bombay, Cape Town, Rio de Janeiro, Buenos Aires, Valparaiso, Lima, the capitals of Europe, such wonderful cities as Constantinople, Cairo and hosts of smaller but buying centers. ESTABLISHING A FACTOR OF SAFETY When a manufacturer has built up a clientele in foreign countries whose purchases form even a modest fraction of his total output his factor of safety is decidedly greater than that of his non-exporting competitor. Following the customary practice of defining payment dates by drafts, he is sure of a sufficient volume of payments at anticipated times to tide over any temporary stringency in the domestic money market; whereas, the very cause of the calling in of loans which makes it desirable for the non-exporter to make prompt collections will cause such customers to seek extensions. This factor of safety increases out of proportion... --This text refers to an alternate Paperback edition.