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THE INVESTIGATION OF OVERSEAS MARKETS.

4th July 1918, Page 8
4th July 1918
Page 8
Page 9
Page 8, 4th July 1918 — THE INVESTIGATION OF OVERSEAS MARKETS.
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Which of the following most accurately describes the problem?

Work Preliminary to the Establishment of Our Export Trade in Commercial Vehicles.

IT IS BY NO MEANS uncommon to be able to reach complete agreement as regards the principle of some proposal, but to fail entirely or partially when it comes to the practical application of that principle. Sometimes it is found on analysis that much of what one originally thought needed doing had already been done, or else the machinery already set up so far duplicates that proposed as to make the new move almost if not quite redundant. These few remarks are used to preface some comments on the subject of the development of overseas trade, not because the writer is convinced that they apply in this case, but because it is conceivable that they may apply, and, therefore, we must not be too ready to blame those who are not able for good reasons to Put into practice all the theories on which they and we-are agreed. In this particular case, our principle is that British manufacturers should do everything possible to encourage the development of overseas trade in motor vehicles, and that one of the necessary preliminaries i to effective encouragement of trade s a thorough knowledge of what is required and of what are the best methods of supplying it. We recognize readily enough that, hitherto, the British industry has not had as big a share as we should have liked in the oversea markets. We are inclined to jump to the conclusion that the reason for this is either that the British manufacturer does not understand the conditions overseas, or else that, understanding the conditions, he obstinately and for some insufficient cause refuses to conform to them. Arising out of the first of these two theories, we have, during the past year or so, seen a large number of proposals put forward. With some of these proposals, which have been fathered by all sorts of people from the Government downwards, it is proposed to deal briefly.

Attitude of the Board of Trade.

The Board of Trade, recognizing the inadequacy of its pre-war organization, has taken a very definite step in appointing a much-increased number of Trade Commissioners. So far as one can tell, the selection of Commissioners has been well made. The men a chosen have thoroughly sound business knowledge and are of the right calibre for the job. The first moves have also been taken in the direction of the strengthening of the consular service, and one cannot conclude that, regarding our post-warofficial organization as a whole, we shall fall very much behind the United States, which, we are told, is enlisting corps -of trained business men who speak foreign languages for duty in foreign fields._ The Board of Trade is apparently not altogether convinced that the official organization, however good, can cover all needs, consequently there have been Many indications to the effect that, if any particular industry wishes to send out an expert investigator to study certain oversea markets, the Board of Trade will be favourably disposed towards defraying part of the cost, probably requiring in return an undertaking to the effect that the information collected by the investigator shall be, handed to the Board for the general use of the.British industry after a certain period—perhaps a year—has elapsed. Again, the Board, through its representatives, has put a number of other alternative proposals before British industries. One is the suggestion favouring the appointment of what might be called ‘resident local representatives, who would be local traders of good repute. The difficulty about applying this B30 scheme is that the local trader overseas is certain to be more or less allied to a few individual manufacturers in whose goods he deals ; consequently we cannot expect of him that complete impartiality which seems to be necessary in the representative of an industry -as a whole.

What Is the Work to be Done?

Reverting, then, to the main proposal for sending out experts, and concluding that there is work te be done by any such expert which cannot be properly covered by the Trade Commissioners and other officials, we have to-'consider how the services of such an expert could best be utilizea. In the first place, ought weto send him out almost immediately, or ought we to wait until after the war, when the conditions which he will be able to study on the spot will be more stable ? If there is no objection to a somewhat indefinite delay, then there is plenty of time in which to settle the remaining points, but it is -our belief that the bulk of opinion favours prompt action, if action is to be taken at all.

.Are we to assume, then, that this expert, if he went out, would interview the agents of a large number of manufacturers, study their methods of doing business and report on what are, in his opinion, the best methods, and which firms he believes to be the most reliable and energetic rebresentatives? The question is whether manufacturers whose oversea organization is already fairly thorough would be at all inclined to support any such investigation, which would be far more beneficial to those who have as yet done nothing and would therefore benefit more by what remains to be done. The well-organized and substantial firm, with its system of agents, can learn —and has already learnt--from its agents a great deal about local conditions in all parts of the world. If auch a firm is -satisfied with its -own information, is it worth its while to duplicate it in common with others ? We seem, then, to be touching here upon a field in the exploitation of which it might benefitlarge number of firms of small and moderate size o co-operate, and so to put themselves on a level in certain respects with much bigger and better-established concerns.

A Diplomatic Representative.

The work of an investigator might, however, be on different and broader lines. He might be, so to speak, a diplomatic agent dealing largely with Government departments, municipalities, -chambers of commerce, -and so on. In that case he would be' less definitely seeking information and more definitely attempting to influence legislation and development in such a direction as to encourage first the use of motor vehicles of any kind, and, second, the use of British vehicles in particular. If thorougbly well informed, he would be able to discuss, for instance, projects for road improvement, putting forward arguments to prove the value of such improvement to the community, following upon the increase in road traffic. He would be able to-discuss with the heads of Government departments such questions as the advisability of Government action for the development of motor fuel supplies of one kind or another. He would be able to ascertain whether Government and other public bodies were likely to become considerable purchasers of motor vehicles. If so, he should be able to ensure that, so far as the British Empire is concerned, the purchase should be definitely made, from British manufacturers, while in other countries British manufacturers should at least be given as good an opportunity as any others of tendering for the business. • In some eases he might recommend the introduction 'of British finance to push forward some big development of roads and traffic, subject to certain conditions as regards the source of supply of the vehicles to be used. In the ssell-governing Dominions, he would be able to push home arguments showing the desirability of providing, in all parts of the Empire, considerable fleets of vehicles built within the Empire to more or less standard pattern and, therefore, suitable to serve as transports in case of war. He would inquire into any legislative restrictions at present hindering the use or motor vehicles, and would either try to remedy such things on the spot or else would collect information which would enable him to advise those at home as to how best to set about getting them remedied.

Meanwhile, he would not neglect the virtues of publiCity, and in all these things he would be materially assisted by credentials from the Board of Trade as well as from his industry. If his position were, in a s.ense, official, he would get more ready access to officials in other parts of the world. If all this were to constitute his main work, he would presumably not attempt to interview all the motos agents individually, though he might participate prominently in generalgatherings of agents in important centres and encourage at each an interchange of view from which he could boil down a concensus of opinion which he could report home. We tale it that he would' not, Under any conceivable. circumstances, endeavour actually to fill orders or to advise upon the selection of vehicles. In fact, he would have to act scrupulously as a representative of an entire industry and not merely of one or two manufacturers.

If his work were to be of this diplomatic and political kind, he would, I think, have to go out with the almost unanimous support of the industry. On the other hand, if he went more into details and arranged individual interviews with numerous traders, he might be representative of a considerable group of manufacturers whom lie would serve without necessarily serving the entire industry. On this point, the question would arise whether the British. Government would, in that case, regard him merely as a trading representative or as an industrial missionary. In the former case, the support offered to him and his principals in the matter, -would probably be less considerable.

Tentative Experiments.

Another possibility is that a more or lass tentative move might be made to test the whole scherne. That is to say, some single potential Market might be selected and am-an sent out with a more or less free hand to do everything that he thought useful, and to return after a comparatively short trip. As a result of this, he would probably be able -to advise as to what activities seemed to him to be the most useful, while those at home would be able to judge from Ms report as to the directions in which, in their opinion, he was doing them the best service. This scheme would, in fact, be a sort of trial trip. It would be unambitious, inasmuch as it would not attempt to cover the whole world, but it would be very thorough., inasmuch as the district covered would be covered from all points of view. With themessulting report in his hands, each manufacturer would be able to judge the value of different sections on that report to himself, and to estimate whether it was worth his while to participate in a scheme for covering the whole world by investigators working on any particular lines. The result might perhaps be that one group af manufacturers would send -out a man to Africa and Australia to interview agents, examine prospects, and report on the mechanical features of the vehicles required, while another group might send Out a man to India and the East to try and arrange special financial terms for British products, and the third group might send someone to the south of America. to endeavour to negotiate big contracts or to-organize events which would focus public attention on their products. These are merely three out of scores of schemes that might result from the demonstration which a trial trip would afford.

It may be, however, that a number of firms would consider the trial trip scheme a waste of time, and would favour sending out a number of men promptly and simultaneously in various directions to do certain work which all agreed to be necessary. Probably there are still alternatives that have not been touched upon here. The point is that, when the principle of obtaining information and influencing oversea business has been fully agreed, there remain almost infinite possibilities of disagreement in detail as to bow the project ought to be carried out. The very fact that. nearly every firm has probably considered the whole problem seriously and formed its own views on it, makes general -agreement all the more difficult to obtain, especially if the view formed by some is to the effect that their existing private organizations, supplemented by officials such as Trade Commissioners, are fully competent to keep them thoroughly well informed. Such a conclusion might be absolutely correct on the part of some firms and totally wrong on the part of others. This would introduce inevitable difficulties as regards the allocation of the cost of any scheme that might be fairly generally but not unani mously supported.

Some Conclusions.

Altogether, enough has probably been written to show that, the further one goes into a project of this . kind, the more difficult is it to arrive at anything thoroughly concrete and practical which is worthy of the support of a sufficiently strong group of manufacturers to carry it out. It is conceivable that the possible beneficial results of any big investigation would be found to be mainly or entirely dependent on the prior attainment of a degree of co-operation in manufacture and sales that is not yet possible. Altogether, we cannot pre-judge the case and say that, if the industry does not send out experts to study the oversea markets, it is grossly wanting in an appreciation of its own needs. It may be that its constituent firms in the main already know enotigh to prove to them that action along the lines suggested would not be a sound business proposition. All that one can say definitely is that the impression lingers in one's own mind that there certainly ought to be a great deal of useful work which could be done by a travelling investigator, and that it would seem -to be a great pity if some plan cannot be periected of a sufficiently practical nature to obtain the financial support which alone can enable one's theories to be put to a practical test. Even if such a test has to be regarded as an experiment rather than as an exploitation of an approved proposition, it is still to be hoped that the experiment will at least be made, if only to satisfy those who have their doubts as to whether the British industry is really alive to its position and its future needs.

Those who know the industry best know that it ignores few, if ant, opportunities of securing a Prosperous :future, but it may be necessary, even at some cost, to demonstrate the fact that this is so to the complete satisfaction of others asho have a, lesg accurate knowledge of the aetivities of the indiistry,— d of its real desire to .advance itself and its country by all legitimate means.

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