12. Quality.—In many cases the superiority of the American product is so well recognized that it will sell for a higher price than similar articles marketed by firms of other nationalities. This is illustrated by the conditions in the hardware market in Australia and in South America. The lower-priced German articles formerly found buyers, but did not compete with the superior ware of American make.
At the same time quality is not always a sufficient point. Manufacturers of farm implements found that poor quality German machines were more pop ular with the Russian farmer before the war than the high grade American goods. The reason lay in the fact that the American machinery could not be so readily repaired.
13. the foregoing example, it was the service that fell short. Service may also take the form of long credits on purchases, of prompt and speedy delivery of orders, of instruction in the use of specialized articles, and of aid in advertising cam paigns. A thoro knowledge of the means of render ing superior service is indispensable to the foreign trader. These means include such institutions as
banks, transportation companies, branch houses and freight forwarding companies.
If the American foreign trader has not shown the competitive power in overseas markets which his wealth and enterprise would justify, we must at tribute it to the absence of these facilities for service. American business in foreign markets has been com pelled to compete solely on the basis of price and quality.
14. Foreign trade should be systematic.—Many manufacturers turn to foreign markets only in time of stress. From what has been said, it must be evi dent that such transient activity cannot be expected to meet with success. A foreign market entered in time of need and abandoned when conditions at home resume their normal course may be forever after closed to the merchant guilty of such shortsighted neSs. The foreign buyer will not readily break with firms which serve him faithfully, and he will hardly give his confidence again to those who have once left him in the lurch.