          
                             SELLING OVERSEAS
          
          
          Many successful exporters first started selling 
          internationally by responding to an inquiry from a foreign 
          firm. Thousands of U.S. firms receive such requests 
          annually, but most firms do not become successful 
          exporters. What separates the successful exporter from the 
          unsuccessful exporter? There is no single answer, but often 
          the firm that becomes successful knows how to respond to 
          inquiries, can separate the wheat from the chaff, 
          recognizes the business practices involved in international 
          selling, and takes time to build a relationship with the 
          client. Although this may seem to be a large number of 
          factors, they are all related and flow out of one another.
          
          RESPONDING TO INQUIRIES
          
          Most but not all, foreign letters of inquiry are in 
          English. A firm may look to certain service providers (such 
          as banks or freight forwarders) for assistance in 
          translating a letter of inquiry in a foreign language.  
          Most large cities have commercial translators who translate 
          for a fee.  Many colleges and universities also provide 
          translation services.
          
          A typical inquiry asks for product specifications, 
          information, and price. Some foreign firms want information 
          on purchasing a product for internal use; others 
          (distributors and agents) want to sell the product in their 
          market. A few firms may know a product well enough and want 
          to place an order. Most inquiries want delivery schedules, 
          shipping costs, terms, and, in some cases, exclusivity 
          arrangements.
          
          Regardless of the form such inquiries take, a firm should 
          establish a policy to deal with them. Here are a few 
          suggestions:
          
          *    Reply to all correspondents except to those who 
               obviously will not turn into customers. Do not 
               disregard the inquiry merely because it contains 
               grammatical or typographical errors, which may result 
               from the writer knowing English only as a second 
               language. Similarly, if the printing quality of the 
               stationery does not meet usual standards, keep in mind 
               that printing standards in the correspondent's country 
               may be different. Despite first impressions, the 
               inquiry may be from a reputable, well-established 
               firm.
          
          *    Reply promptly, completely, and clearly. The 
               correspondent naturally wants to know something about 
               the U.S. firm before doing business with it. The 
               letter should introduce the firm sufficiently and 
               establish it as a reliable supplier. The reply should 
               provide a short but adequate introduction to the firm, 
               including bank references and other sources that 
               confirm reliability. The firm's policy on exports 
               should be stated, including cost, terms, and delivery.
          
          *    Enclose information on the firm's goods or services.
          
          *    Send the reply airmail. Surface mail can take weeks or 
               even months, whereas airmail usually takes only days. 
               If a foreign firm's letter shows both a street address 
               and a post office box, write to the post office box. 
               In countries where mail delivery is unreliable, many 
               firms prefer to have mail sent to the post office box.
          
          *    When speedy communication is called for, send a fax. 
               Unlike telephone communications, fax may be used 
               effectively despite differences in time zones and 
               languages.
          
          *    Set up a file for foreign letters. They may turn into 
               definite prospects as export business grows. If the 
               firm has an intermediary handling exports, the 
               intermediary may use the file.
          
          *    Sometimes an overseas firm requests a pro forma 
               invoice, which is a quotation in an invoice format. It 
               is used rarely in domestic business but frequently in 
               international trade.
          
          SEPARATING THE WHEAT FROM THE CHAFF
          
          How can a firm tell if an overseas inquiry is legitimate 
          and from an established source? A U.S. company can obtain 
          more information about a foreign firm making an inquiry by 
          checking with the following sources of information about 
          foreign firms:
          
          *    Business libraries. Several publications list and 
               qualify international firms, including Jane's Major 
               Companies of Europe, Dun and Bradstreet's Principal 
               International Business, and many regional and country 
               directories.
          
          *    International banks. Bankers have access to vast 
               amounts of information on foreign firms and are 
               usually very willing to assist corporate customers.
          
          *    Foreign embassies. Foreign embassies are located in 
               Washington, D.C. (see appendix IV), and some have 
               consulates in other major cities. The commercial 
               (business) sections of most foreign embassies have 
               directories of firms located in their countries.
          
          *    U.S. Department of Commerce. Commerce can provide 
               information on international firms through its WTDRs, 
               which are available for a fee through any local 
               Commerce district office.
          
          *    Sources of credit information. Credit reports on 
               foreign companies are available from many private 
               sector sources, including (in the United States) Dun 
               and Bradstreet and Graydon International. For help in 
               identifying private sector sources of credit reports, 
               contact the nearest Commerce district office. Firms 
               insured by the Foreign Credit Insurance Association 
               (FCIA) can also obtain help from FCIA's headquarters 
               in New York City (telephone 212-306-5000).
          
          BUSINESS PRACTICES IN INTERNATIONAL SELLING
          
          Awareness of accepted business practices is paramount to 
          successful international selling. Because cultures vary, 
          there is no single code by which to conduct business. 
          Certain business practices, however, transcend culture 
          barriers:
          
          *    Answer requests promptly and clearly.
          
          *    Keep promises. The biggest complaint from foreign 
               importers about U.S. suppliers is failure to ship as 
               promised. A first order is particularly important 
               because it shapes a customer's image of a firm as a 
               dependable or an undependable supplier.
          
          
          *    Be polite, courteous, and friendly. It is important, 
               however, to avoid undue familiarity or slang. Some 
               overseas firms feel that the usual brief U.S. business 
               letter is lacking in courtesy.
          
          *    Personally sign all letters. Form letters are not 
               satisfactory.
          
          Before traveling to a new market, the traveler should learn 
          as much about the culture as possible to avoid embarrassing 
          situations. For example, in Mexico it is customary to 
          inquire about a colleague's wife and family, whereas in 
          many Middle Eastern countries it is taboo.  Patting a U.S. 
          colleague on the back for congratulations is a common 
          practice, but in Japan it would be discourteous. Clothes, 
          expressions, posture, and actions are all important 
          considerations in conducting international business.
          
          Another important consideration is religious and national 
          holidays.  Trying to conduct business on the Fourth of July 
          in the United States would be difficult, if not impossible. 
          Likewise, different dates have special significance in 
          various countries. Some countries have long holidays by 
          U.S. standards, making business difficult. For example, 
          doing business is difficult in Saudi Arabia during the 
          month of fasting before the Ramadan religious festival.
          
          Numerous seminars, film series, books, and publications 
          exist to help the overseas traveler. Try to obtain cultural 
          information from business colleagues who have been abroad 
          or have expertise in a particular market. A little research 
          and observation in cultural behavior can go a long way in 
          international commerce. Likewise, a lack of sensitivity to 
          another's customs can stop a deal in its tracks. Foreign 
          government consulates in U.S. cities offer a wealth of 
          information on business customs and norms for their 
          countries.
          
          BUILDING A WORKING RELATIONSHIP
          
          Once a relationship has been established with an overseas 
          customer, representative, or distributor, it is important 
          that the exporter work on building and maintaining that 
          relationship. Common courtesy should dictate business 
          activity. By following the points outlined in this chapter, 
          a U.S. firm can present itself well. Beyond these points, 
          the exporter should keep in mind that a foreign contact 
          should be treated and served like a domestic contact. For 
          example, the U.S. company should keep customers and 
          contacts notified of all changes, including price, 
          personnel, address, and phone numbers.
          
          Because of distance, a contact can "age" quickly and cease 
          to be useful unless communication is maintained. For many 
          companies, this means monthly or quarterly visits to 
          customers or distributors. This level of service, although 
          not absolutely necessary, ensures that both the company and 
          the product maintain high visibility in the marketplace. If 
          the U.S. exporting firm cannot afford such frequent travel, 
          it may use fax, telex, and telephone to keep the working 
          relationship active and up to date.
          
          
