The distance of the market and the length of time the goods are in transit directly influence costs and prices. Money locked up in goods accumulates in terest charges, irrespective of whether the transaction is financed by the buyer, the seller or a bank. This is one of the strongest arguments for the utilization of American shipping.
5. Cost of placing goods on the portation charges figure high in the cost of some ar ticles and may even bar them from competition be yond a certain radius. If importing and exporting are done on a large scale it may sometimes be possible to carry such commodities as part of a return cargo at a lower rate than normal. Great Britain's posi tion in foreign trade is in no small measure due to the cheaper inward freight-rates it can demand because of its ability to provide a return cargo of coal. But this is exceptional.
The extent to which long term credit must be al lowed to customers is an important factor in the cost of doing business. In dealing with agricultural countries, long credits are unavoidable. Where the capital turnover is rapid, as in industrial nations, low prices and prompt delivery mean more than long credit.
The general credit conditions in the foreign market should be as carefully studied as the individual risk. Some countries are notoriously lax in enforcing con tracts at the expense of their own citizens; the for eigner seldom receives fair treatment in the courts. The 'cost of doing business in such markets is higher than where conditions are more satisfactory.
The credit risk is still further increased if the country is so sparsely populated as to contain no ac tive markets where goods shipped to customers on credit and refused acceptance or not delivered because of financial difficulties may be sold without undue sacrifice.
6. the most important item in the cost of placing goods on foreign markets is the customs tariff. This may not be the same to all foreign manufacturers. Some nations may be fa vored, because of reciprocal arrangements. Again, the same articles may be charged different rates, ac cording to differences in packing or even in descrip tion in the invoice. It should be kept in mind, too, that a low tariff may turn out to be quite as trouble some as a high tariff. The way in which the duties
are levied and the speed with which goods are cleared are quite as important as the rate of duty that may be charged.
7. Import prohibitions are found in many countries. They generally affect only small classes of articles and usually have some moral or hygienic object or reason of state in view. The im portation of opium, of infected cattle or meats and of adulterated food is frequently forbidden. In the United States, the President may, by proclamation, suspend the importation of articles which he regards as dangerous to the public health and welfare.
In England "indecent or obscene prints, paintings, photographs, books, cards, lithographs or other en gravings, or any obscene or indecent articles" are barred. This type of prohibition /i found especially in the Anglo-Saxon nations. The •United States does not allow "obscene books, articles of im moral nature, drugs used for immoral :purposes" or • •• lottery tickets to enter the country. •.
Russia did not allow the importation of :articles or ' writing of an "irreligious nature." Persia•gorbids the importation of anything which might be construed as attacking the Mohammedan religion.
By English law alI infringements on English copy rights or patents are excluded and also articles which are prepared or packed in such a manner as to deceive the buyer as to the country of origin. France and the United States have similar laws.
Probably the most common import prohibition is at tributable to state monopolies. In France tobacco, cigars, cigarettes, matches and cigar lighters, are all sold by governmental agencies; the importation of these articles for sale is therefore prohibited. In Servia cigarette papers are on the prohibited list. In Spain religious books, rosaries and other articles of a distinctly religious nature are only permitted to be imported by "authorized persons." State monopolies do not exclude the possibility of importing. The im portation, however, if permitted, must take place thru the authorized channels.
Regulations of this sort are not infrequently made the means of discriminating against one country, as was done by Germany in the case of American meats, some fifteen years ago.