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The article chronicles the evolution of the Austrian state after World War I and discusses the reasons for the reversal of the economic downturn. The article profiles Austria by providing information about its geographic position, culture, agriculture, industry, as well as the importance of Vienna as a banking center. The rehabilitation plan developed by the League of Nations in 1922 is outlined, consisting of a recognition and assertion of Austria's independence, terms of a loan in the amount of 650,000,000 gold crowns, and reform measures. The article discusses the success of the plan and considers the question of whether or not these reforms will address the Austria's fundamental weakness--whether or not it will be able to produce and sell enough goods to pay for imported food.

Most business executives who have put time, effort, and investment into developing a presence in China resist the notion of decoupling. With the Biden administration likely to take a less confrontational approach to China than Donald Trump did, CEOs might be tempted to hope that the issue will blow over. But as the authors point out, China has been following a long-term strategy of reducing its dependence on foreign technology and capabilities for more than 15 years and has projected that strategy forward another 15 years. Decoupling is here to stay. In this article they explain four strategies for foreign companies in China, depending on whether they are below-the-radar players, upstream players, market players, or dual players. INSET: China's Decoupling Strategy. [ABSTRACT FROM AUTHOR]

The U.S.-China trade war and the supply and demand shocks brought on by the Covid-19 crisis are forcing manufacturers everywhere to reassess their supply chains. For the foreseeable future, they will face pressure to increase domestic production, grow employment in their home countries, reduce their dependence on risky sources, and rethink strategies of lean inventories and just-in-time replenishment, which can be crippling when material shortages arise. This article provides advice to make your supply chain more resilient without sacrificing competitiveness. Start by mapping the full extent of your supply network to identify both direct and indirect sources. Determine how quickly those that are most vital for you could either recover from a disruption or be replaced by an alternative. Address the vulnerabilities by diversifying your suppliers or stockpiling essential materials. Explore production-process improvements or new technologies—such as automation, continuous-flow manufacturing, and 3D printing—that could lower your costs or increase your flexibility when faced with a shock. And revisit your product strategies: Offering consumers more choices isn’t always better. [ABSTRACT FROM AUTHOR]

No longer content with being the world's factory for low-value products, China has quietly opened a new front in its campaign to regain its place as the globe's most powerful economy: The country is on a quest for high-tech dominance. In pursuit of this goal, the Chinese government has ensured that it will be both buyer and seller in certain key industries by retaining ownership of customers and suppliers alike. It has consolidated several manufacturers in those industries into a few national champions to generate economies of scale and concentrate learning. And it is co-opting, cajoling, and coercing multinational corporations to part with their latest technologies, imposing regulations that put those companies' CEOs in a terrible bind: They can either comply with the rules and share their technologies with would-be Chinese competitors or refuse and miss out on the world's fastest-growing market. China's actions have provoked several disputes between Beijing and foreign companies and prompted some companies to review their strategies along one or the other of two lines. The first seeks to tackle the issue of how a multinational corporation can minimize competitive and security risks to its technologies. The second asks which innovations a foreign company must develop in China to gain advantage in the global market. Foreign companies doing business in China cannot wait for balancing macroeconomic forces or multilateral solutions; if they wish to survive as global technology leaders, they must bring greater imagination to bear on the problem. Above all, China's maneuvers cast into doubt the optimistic premise that engagement and interdependence with the West would cause capitalism and socialism to converge quickly, reducing international tensions. Storm clouds are gathering over China and the U.S. in particular. Can two economies with such radically different structures and objectives peacefully coexist? Most people expect that the systems will eventually become more similar. However, the authors argue, this will happen only when China becomes as rich-and as technologically advanced-as the U.S. INSETS: Idea In Brief;China's Plans for Winning the Tech War;Whose R&D Will Deliver Results?;Whose R&D Will Deliver Results? [ABSTRACT FROM AUTHOR]

Most Westerners preparing for a business trip to China like to arm themselves with a list of etiquette how-tos. "Carry a boatload of business cards," tipsters say. "Bring your own interpreter." "Speak in short sentences." "Wear a conservative suit." Such advice can help get companies in the door and even through the first series of business transactions. But it won't sustain the prolonged, year-in, year-out associations Chinese and Western businesses can now achieve. The authors' work with dozens of companies and thousands of American and Chinese executives over the past 20 years has demonstrated that a superficial adherence to etiquette rules gets executives only so far. They have witnessed communication breakdowns between American and Chinese businesspeople time and time again. The root cause: the American side's failure to understand the much broader context of Chinese culture and values, a problem that too often leaves Western negotiators flummoxed and flailing. American and Chinese approaches often appear incompatible. Americans see Chinese negotiators as inefficient, indirect, and even dishonest, while the Chinese see American negotiators as aggressive, impersonal, and excitable. Such perceptions have deep cultural origins. Yet those who know how to navigate these differences can develop thriving, mutually profitable, and satisfying business relationships. Four cultural threads have bound the Chinese people together for some 5,000 years, and these show through in Chinese business negotiations. They are agrarianism, morality, the Chinese pictographic language, and wariness of strangers. Most Western businesspeople often find those elements mysterious and confusing. But ignore them at any time during the negotiation process, and the deal can easily fall apart. INSET: Who's on Your Side of the Negotiating Table?. [ABSTRACT FROM AUTHOR]

Most multinational corporations are fascinated with China. Carried away by the number of potential customers and the relatively cheap labor, firms seeking a presence in China have traditionally focused on selling products, setting up manufacturing facilities, or both. But they've ignored an important development: the emergence of Chinese firms as powerful rivals--in China and also in the global market. [ABSTRACT FROM AUTHOR]

The article examines whether Germany's competitiveness is declining or just deviating from the pattern of a modest but steady inflow of direct investment. Whereas in the last century, the country relied on foreign direct investment (FDI), over the past twenty years it has not been one of the major recipients of such capital flows. Despite this setback and other problems, however, the author concludes that the country's status as a "natural" creditor as regards FDI does not mean that it has lost its attractiveness as an investment location. With its highly developed infrastructure and stable business environment, the country continues to be a good place for foreign companies to operate.

The United States probably has worse relations with Iran than with any other country in the world. There is plenty there to arouse distrust, but the fact is, Iran has more long-term potential as a trading partner, and even as an economic and political ally, than any other country in the Middle East save Israel. Moreover, making peace is really up to us. For all their bellicose statements, Iranian leaders have shown many signs of a willingness to compromise and reestablish a relationship. Iran rates high in three vital areas: overall stability, economic potential, and the prospects for compatibility. Unlike most of its neighbors, Iran has settled its internal struggles and reemerged with functional republican institutions. Economically, Iran has suffered many blows since 1979, including a decline in oil production and war with Iraq. But Iran has a young population of nearly 60 million people and massive import and export needs. Economic improvements will require tough political decisions; the key to these reforms is reintegration into the world financial community, and the barrier to reintegration is bad U.S. relations. Yet, historically, the United States has been closer to Iran than to almost any other Third World country, and between us there is a reservoir of goodwill as well as of deep resentment. The U.S. government seems determined to go on punishing Iran, which, in turn, seems bent on pushing its own anti-American propaganda. But reconciliation is possible. And corporations are leading the way. U.S. exports to Iran have already reached $1.5 billion, but they could be greater if the United States consulted its own best long-term interests rather than its short-term political inclinations. INSET: Living and Breathing in Teheran. [ABSTRACT FROM AUTHOR]

According to free traders, U.S. companies should leap aboard the Mexican bandwagon. After all, if NAFTA is ratified, Mexico will continue the sweeping economic reforms that will open up a market of 90 million consumers. But Laurence Hecht and Peter Morici warn that any company considering a move to Mexico must manage both the old risks of a developing country and the new uncertainties of an open market. Since the 1960s, U.S. companies have operated maquiladoras, factories near the border that use Mexican labor to assemble products for export. Up to now, these factories have not been able to sell in Mexico, but as trade barriers come down, they will compete for the first time with the most successful Mexican companies and other fierce competitors. Then there are the expenses of maintaining Mexican operations. Companies that require a nontransient work force, for example, may find it necessary to provide their Mexican employees with schools, housing, and health care. And inadequate infrastructure and communications systems compound the difficulties--and increase the costs--of doing business in Mexico. Hiring local managers and finding local partners have helped some companies manage the inevitable risks. But before rushing in, managers must ask a few global questions: Are Mexican factories the most profitable? Are Mexican suppliers the best? Depending on the answers to these questions and on a company's size and core business, the risks of doing business in Mexico may outweigh the benefits. [ABSTRACT FROM PUBLISHER]

In an open letter, Sony's chairman addresses the present deterioration of U.S.-Japan relations and offers his view of how the two countries can patch up their differences and work as partners toward mutual economic success. He argues that mistrust and fear embodied in "bashers" and protectionists on both sides are holding back a relationship of historic importance. Just as it was once in America's interest to rebuild the economy of postwar Japan, the Japanese know that an economically weakened United States dims the prospects of Japan's future success. Indeed, the U.S. market is critical to Japanese companies. But more important, the United States is a laboratory for scientific, technological, and social innovation from which Japan and the rest of the world benefits. Morita suggests that by moving more manufacturing operations to the United States, Japan can make meaningful contributions to revitalizing the U.S. economy. He laments the erosion of the U.S. manufacturing base, believing that an economy that does not manufacture well cannot continue to invest adequately in itself. To allay American fears of foreign investment, Morita points out how the expansion of the Sony Corporation 30 years ago occurred only because of U.S. investment. Sony was the first Japanese company listed on the New York Stock Exchange. Likewise, Japanese capital added to American technology today can create new, competitive companies that are beneficial to both sides. Pooling Japanese-U.S. talents in research and commercialization can lead to the development of new productive technology and new solutions to pressing global problems. Without a partnership between the two countries, neither side has much hope for economic success or social harmony in the twenty-first century. [ABSTRACT FROM PUBLISHER]

Hong Kong's economic miracle is the product of its six million residents' brave, myriad entrepreneurial visions--and a British administration just unimaginative enough to let them get rich quick without interference. And rich they are. Per capita income is higher than Japan's and Britain's. Total domestic product has risen to $63 billion in 1989. The colony has the biggest container port in the world. It is the world's biggest exporter of textiles and garments, toys and watches, and all manner of electronic products. In the process, Hong Kong and China have become economic Siamese twins. Hong Kong capitalists have contributed about two-thirds of new investment in China during the past decade. Direct sales to Hong Kong, remittances from Hong Kong family members, and the salaries of the two million Chinese employed by Hong Kong entrepreneurs account for about half of China's foreign exchange earnings. Given the high cost of labor and land in the colony, Hong Kong manufacturers could not compete without Chinese labor. Yet Hong Kong now feels like the goose who will be throttled for laying golden eggs. The colony will be handed back to China in 1997, Chinese officials are already moving in, pressing their connections to the regime in Beijing to gain advantages for Chinese enterprises--and themselves. Hong Kong is not a democracy today but the legal structure set up by the Sino-British agreement allows China to meddle in Hong Kong's life--a particularly worrisome prospect after Tiananmen Square. The result has been an enormous exodus from the colony, more than 60,000 of the best and brightest just last year. Where there is no democracy, people vote with their feet, and without entrepreneurs, the world's most impressive skyline may become an empty shell. INSET: An International City?. [ABSTRACT FROM PUBLISHER]

Nowadays, global corporations organize their operations around integrated economic regions, not just national markets, which is why some 35% of the largest 1,500 U.S. companies are looking into Eastern Europe. The draw is obvious: one hundred million potential consumers, reasonably skilled, low-cost workers, and a favorable political environment. But U.S. companies should be looking, instead, just across the Rio Grande. Unlike Eastern Europeans, Mexican workers have a genuine understanding of the routines of market capitalism. There are some 1,250 maquiladora plants operating in the northern tier of Mexico, including one of the biggest centers for television production in the world. Mexican companies such as the $2 billion Vitro Corporation compete on advanced technology--not only on cheap labor. Indeed, since 1988, foreign companies have invested some $ 80 billion in the country. Nor are common stereotypes about Mexico justified. Two-thirds of Mexico's exports are manufactured goods whose quality has had to be on a par with U.S. products. The peso has been stabilized, and annual inflation has dropped from 160% to 20%. The Mexican stock market index has doubled since July 1989. And there are fewer barriers to trade, with tariffs dropping on average to 12%. It will take years of work and mountains of capital to develop Mexico. But like West Germans and East Germans, if the Americans do not help the Mexicans to live more prosperously where they are, they will continue to flood across the border. The best way to deal with Mexico's economic opportunity is the only way. If the United States will not seize it, others will. [ABSTRACT FROM PUBLISHER]

The article presents a section of the issue that contains several articles, including "East-West Trade--in Both Directions," an article by William C. Norris about foreign economic relations between the United States and the Soviet Union, "Diversification Before Conglomerates," and an article by Davis Dyer and David Sicilia about Hercules Powder Company. The article also features several humorous accounts related to business, including "The Law of the lunch," "Big vs. Small Companies: The Synthesis," and "The Composite CEO."

The article offers candid advice on how the new U.S. president-to-be must handle the set of business and economic issues awaiting him. The authors advised that corporate leaders must be aided in overcoming three debilitating myths, namely: 1. that superior products at the high end of the market are enough for a company to compete, 2. that cheap labor is the basis for the success of foreign competition, and 3. that the cost of capital cripples U.S. competitiveness. Policies that at the very least do not encourage offshore production are needed. The next president must support the rebirth of U.S. manufacturing competitiveness.

We can't cure the problem of declining U.S. competitiveness as long as we disagree on its cause. The continuing strong global position of U.S. MNCs--and their continuing strong presence in export markets--belie the argument that management is the cause. Nor is the decline in the dollar to blame. America's competitive problems predate the precipitous fall in the currency and remain with us when the dollar climbs. And we can't protect ourselves from imports as long as MNCs can still get better value added by manufacturing offshore. These kinds of diagnostic caveats can put government policymakers into a dither when they try to help cure the disease. Congress has a good record, however, in dealing with trade issues from a broad base without pandering to special interests. It should continue to act in this responsible fashion and build on the fact that--whatever its origins--worldwide economic change is here to stay. We cannot ignore it. The way to deal with it is to make economic changes ourselves that will: • Stimulate industrial innovation in specific areas while giving managers the freedom from antitrust restrictions necessary to compete in world markets. • Reverse the economic polarization that curbs productivity through tax policies that foster domestic development and encourage MNCs to locate facilities in the United States instead of offshore. • Achieve objectives without beggaring other countries by living up to trade agreements rather than trying to get around them. [ABSTRACT FROM AUTHOR]

International business is not popular with many American executives.The rules of the game abroad are trickier than those at home, the chances of winning more slim. Most managers would prefer to ignore international sales altogether. But in today's economic climate, few companies can afford to sell only in their home markets. One particular element of the international business scene that causes executives enormous difficulties is countertrade, or barter. Countertrade can help managers not only make sales but also find lower-cost sources of procurement, clean up bad debt situations, and build customer relationships. This exchange of goods for goods instead of goods for money is messy and complex, and as David Yoffie points out, more often than not loses money for the participating company. But he also shows how pragmatic companies have turned apparently impossible situations to their advantage. If the executive keeps in mind the pitfalls, he can take advantage of what some observers think is a market equal to 30% of the world's $2 trillion sales. [ABSTRACT FROM AUTHOR]

As the international economy becomes ever more competitive, the United States may be missing a bet in ignoring new technology in Eastern Europe and the Soviet Union. Although Americans tend to see the COMECON countries as technologically backward, some large U.S. companies have acquired licenses for highly useful processes and products from those markets. This author points out some of the difficulties of buying technology from the Communist world and shows U.S. companies how to take advantage of the opportunities. [ABSTRACT FROM AUTHOR]

Old habits of mind, says Barbara Ward, the author of our lead article last issue, will not serve us well in designing the new economic order the world needs now. Seeing it in terms of "them" versus "us" will not give us faith in humankind's ability to create workable international institutions or the imagination to refine them. It is not charity but justice that we need, she says, not sporadic donation but organized sharing. Defining progress as the equitable distribution of the world's bounty is now a matter of survival for everyone, not merely moral injunction. This call for courage to face a situation most people would rather avoid aroused our readers' response. Leaders from the business world wrote more letters about Ward's "Progress for a Small Planet" than about any other article last issue. It does not hurt, evidently, to be reminded that producing, selling, and consuming fit into a broader context than business. Perhaps that attitude itself is a form of progress. [ABSTRACT FROM AUTHOR]

For a long time government officials and economists have been foretelling severe consequences--ranging from sharp dislocation to outright doom--for the world economy as convential fuels gradually become scarcer and the oil-producing countries continue to squeeze their customers with incremental price hikes. This article provides a fresh look and also offers a much more optimistic view of the future, up to the turn of the century, than is ordinarily heard. The authors predict a leveling-off in prices in constant dollar terms until the mid-1980s, when energy prices will rise and reflect the cost of supplies more difficult to recover. Competition and rivalries among the oil producers should heat up as conservation efforts gain momentum. Technological developments like use of oil shale and other new energy systems will then come to fruition. The authors buttress their claims with extensive graphic material derived from a great amount of analyzed data. [ABSTRACT FROM AUTHOR]

In retrospect, the past ten years have marked a watershed for companies engaged in business around the world. Rather than intensify, as so many observers were predicting in the late 1960s, the American hegemony has waned somewhat as companies based elsewhere, most notably Continental Europe and Japan, have emerged as formidable competitors for world market shares in virtually all areas of economic endeavor. The decentralized nature of the corporate form of decision making has come into its own. At the same time, the heads of socialist and less developed countries have gained the confidence and ability necessary to negotiate successfully for their constituents. Drawing on data from a variety of sources including his own comprehensive research, the author traces the more significant of the changes that have occurred and what they portend for the manager in the years ahead. [ABSTRACT FROM AUTHOR]

Saddled with enormous trade deficits and external debt, the Soviet Union and its partners in the Eastern European economic alliance (Comecon) are understandably reluctant to allocate hard currency to new purchase programs for Western plant, equipment, and supplies. Until the imbalance is corrected, there appears to be little prospect of boosting sales to Comecon along traditional lines--despite the Carter administration's professed intentions to encourage "a new beginning" in East-West relations. But opportunities exist for U.S. and Western European businessmen to make major deals if they are willing to accept unconventional compensation arrangements, including counter-purchase of licensed products and other goods; and the terms are negotiable. With the right mixture of imagination and caution, profitable contracts can be arranged. [ABSTRACT FROM PUBLISHER]

The article discusses United States foreign policy with a focus on America's economic policy in Asia. The lack of knowledge about conserving natural resources and distributing products, as well as efficient farming methods and farmers' resistance to change, are contributing to poverty and economic unrest in Asia. The U.S. can assist agricultural development by encouraging cooperatives as a follow-up to land reform, offering technical assistance for building roads, and teaching the use of better food storage and processing procedures. Topics include U.S. influence on South Korea and the Philippines, examples of Soviet failure in rural or economic development, and three reasons why mechanization of agriculture in Asia will not work.

The article reports on the European Recovery Program (ERP), the United States postwar economy, and the outlook for international trade. ERP was started as a four-year U.S. government program to assist in the postwar period of recovery. Its purpose was to monitor the flow of government aid and supplies through private channels. An agency formed by countries in Europe, the Organization of European Economic Cooperation (OEEC), developed a plan for industrial and agricultural expansion. Topics include factors contributing to a trade balance, formation of the U.S. government agency Economic Cooperation Administration (ECA), American investment in a peacetime cooperative program for economic recovery, and the U.S. import and exporting policies.

The article details the organizational structure of the Combined Production and Resources Board, which was developed to manage economic and military requirements for the United States, United Kingdom, and Canada. The Combined Production and Resources Board was organized around the concept of providing materials and equipment for the western Allies combined military command which was battling the Axis nations. One of the accomplishments of the Board, which was dissolved in 1945, was the success of its committees, such as the Truck Committee that analyzed the production of wheeled transport vehicles during World War II. Topics include problems caused by the British procurement requirements and factors contributing to the success of the international organization. INSET: Text of the Charter of the Combined Production and Resources....

The article speculates on the United States government's role in the postwar export trade. The objectives of government intervention are keeping America's position as a military power and world peacekeeper, meeting obligations in international markets, and supporting free enterprise and full employment policies. Limited regulation and government assistance to exporters might restrict the trend toward statism. The United States Commercial Co. (USCC) could facilitate government participation in foreign trade and surplus disposal abroad. American trade policy will focus on supply allocation and price control, surplus disposal, expert subsidies, and international commodity agreements. Topics include laissez faire policy, protectionism in foreign countries, and blacklisting of firms.

The article refers to a Good-Neighbor Policy and the outlook for economic relations between the United States and Latin America. The war stimulated intense industrial activity in Argentina, Brazil, Mexico, Chile, and Colombia, so a strong demand for machinery is expected. Investment in Latin America is likely to take the form of partnerships using both foreign and local capital. Fiscal reform has led to personal and corporate income taxes in a majority of the Latin American republics. The reduction in demand for strategic materials will affect commodity prices and foreign trade in the postwar period. Topics include import trade, foreign exchange, the proposed International Monetary Fund, U.S. trading bloc, political instability during economic development, and anti-Americanism.

The article discusses the gold policy in the U.S. with respect to its influences of trade domestically and internationally. The author looks at the problems caused by the attempted sterilization of gold imports by substituting gold certificates for Federal Reserve notes in circulation, and the export of gold during the 1920's. Another problem surfaced from the panicky withdrawals of gold by the U.S. and Great Britain from world markets after the end of World War I. The author offers suggestions on how to stabilize the gold policy in the U.S. and the rest of the world in order to avoid devaluation of its currency.

The article focuses on dispelling the myths and bringing forward the truths about Soviet Russia. The myths come from several areas of Russia which are in direct opposition of the current regime and from persons of nobility and wealth who have immigrated to other nation's large cities because of a refusal to work among more common people. The author looks at how the trade policy between the U.S. and the U.S.S.R. has decreased substantially because of these myths which point to the Soviet government falling apart. Furthermore, he compares the current economic situation of the U.S. with that of the U.S.S.R. and speculates on future trade agreements between the two nations.

The article discusses the use of economic sanctioning in international relations. In particular the League of Nations is highlighted for its use of economic sanctions to prevent armed conflict. Economic sanctions were first provided for internationally through the Covenant of the League of Nations. The League of Nations is an international organization established in 1919 as a result of the Paris Peace Conference following World War I. The League of Nations is attempting to effect an amicable settlement between China and Japan. Japan is considered particularly vulnerable because of its dependence on foreign imports.

The article discusses some of the factors which influence the price of silver during the world-wide economic depression of 1929-1931. The reduction of the price of silver compared to its pre-World War I price is discussed, as well as the world-wide consumption of silver. Fluctuations in the quality and supply of silver affecting price are discussed. The effects of hoarding in India, price depreciation in Mexico and South America, and foreign trade in China on the price of silver and purchasing power are also examined.

The article discusses the Bank for International Settlements (B.I.S.). The Bank was created to collect the reparation payments from Germany post World War I and to imitate the functions of a central banking organization. The Bank's lending capacity is almost entirely dependent on its own resources and its own deposits. The B.I.S. plays an important role throughout the global banking community through its commercialisation and mobilization of Germany's debt. Analysts speculate that the B.I.S. is too dependent on the Central Banks and their regulations.

The article discusses the future of the U.S. export trade post World War I. The War has instigated significant changes in international economic relations including the increased U.S. emphasis in the Asian markets. Another change for the U.S. is the country's diminished dependence on Europe for its raw materials. The U.S. has developed contacts with important international markets in the Far East and South America. Analysts say the future success of U.S. exports is dependent upon the expansion of the country's productive capacity.

"U.S. investment in Latin America can anticipate some grueling days," warns a noted lawyer, businessman, and diplomat. Those companies that are reassessing their operations in that part of the world, as a result of several expropriations and other events, are likely to be joined by many others in the not-distant future, as Latin governments press for more authority over foreign subsidiaries. The author reviews the situation which U.S. corporate enterprise faces, indicates what kinds of restrictive measures may be in the offing, and suggests some ways in which foreign companies can improve their relations with Latin America and make their continued existence there more likely. [ABSTRACT FROM AUTHOR]

This article analyzes several problems presented by developments in the international capital markets, solutions developed to cope with the problems, and their relevance to investors in the United States. Although American investors have not been active in the purchase of foreign securities in the past, the author argues, they offer the advantages of high yield, high quality, and protection against the risk of exchange-rate fluctuations. Three principal reasons for the heavy demands on the investor placed by the rapid succession of changes in the international bond market are given, including political and economic forces, security forms, and forecasting in the foreign bond market.

Because of the realities of international commerce and the advantages of integrating the Soviet economy into the world economy, we need.... [ABSTRACT FROM AUTHOR]

What kind of trade program will enable U.S. businessmen to meet foreign competition head-on--to win the struggle, rather than avoid it by political means? Only a program based on a clear and unequivocal commitment to a national policy of freer trade will challenge America's industry to compete without trade barriers and to compete, moreover, without inevitable injury. The experience of the six European Common Market nations shows that it can be done, says Irving B. Kravis, Professor of Economics, Wharton School of Finance and Commerce, University of Pennsylvania. [ABSTRACT FROM AUTHOR]

You can't rule out reciprocity, but you can't give in to it either. Here is a proposed method of handling it. [ABSTRACT FROM AUTHOR]

This article offers a look at the legal and cultural problems which Westerners and United States businessmen encounter in seeking business in Japan. The author mentions the book "The Honorable Picnic," by Thomas Rauçat. He stresses the importance of businesspeople placing themselves in the Japanese culture while establishing business opportunities and negotiating with Japanese businessmen. The article discusses business management practices in the country, the impact of culture, and strategies for coping with differences in culture and organizational practice.

The article mentions systems management and how it can be applied to international economic development. The economic rivalry between communist and free-enterprise countries is a concern of American business. The U.S. approach to economic development has more weaknesses than the Soviet strategy of central planning. However, an alliance between business and government--similar to the systems concept used by the U.S. Air Force to produce weapons systems--could give business an advantage. Topics include the characteristics of systems management, the use of feasibility studies, political and economic benefits for underdeveloped nations and the Free World, and hypothetical examples of economic development projects, as well as public/private sector partnering.

This article examines the potential gains and disadvantages for United States business enterprises conducting trade with Communist countries. According to the author, the United States Department of Commerce determines what foreign business enterprises U.S. companies can trade with. The author addresses various barriers that American businesses can face in a communist business environment, as well as several obstacles in the country's foreign trade policies that involve communist nations. Countries described include the Soviet Union, Czechoslovakia, Hungary, Poland, and Romania.

In the United States antitrust legislation has come to be taken for granted. In fact, trust busting has practically become an American institution. But have antitrust laws and decrees had the results intended? Are there opportunities to improve and strengthen the antitrust laws? And what accounts for the radically different viewpoints on such questions that are held by United States and European businessmen? These and other issues have been subjected to a good deal of scrutiny in recent years. [ABSTRACT FROM AUTHOR]

The article informs American companies about partnering with licensing agreements for manufacturing and marketing rights in foreign countries. Although a straight licensing arrangement is not the best method for operating overseas, it is a way to develop a foreign market with minimum capital investment or to supply a market when there are trade barriers. Basic decisions that must be made before signing a licensing contract relate to knowing the market's potential for development and for the amount of income expected, arranging the best conditions for market growth and working relationships, and choosing the most effective business partner. Topics are control over production and 15 questions to consider when drafting a licensing agreement.

"The constant conflict between policy and ideology is something that only the 'pros' talk about, and outsiders, especially business leaders, do not comprehend," J. Anthony Panuch told the Editors, in describing the background of his article. The current furore over our foreign economic aid program provides an appropriate setting for a serious attempt to bring the issue out into the open for businessmen to deal with. Thus A Businessman's Philosophy for Foreign Affairs emerges as a guide for busy executives who, under our "Businessmen's Administration," are forced to consider the direction of the nation's international policies in these turbulent years. At the same time, it offers a look behind the scenes at the dissension over a new approach to foreign aid, which already has made the headlines this spring. [ABSTRACT FROM AUTHOR]

This article discusses key issues and developments, which are relevant to foreign economic policies that were compiled as of March 1955. The article discusses the lack of middle- to long-term financing of exports and income-producing goods from manufactures and business enterprises. The article also discusses problems in the partnership between business enterprises and the United States government as well as implications for international trade with foreign countries, investment, and economic policy.

The article reports on East-West trade and the Free World's interest in Japan as part of a military defense strategy. There is concern about the deficit in Japan's sterling account and balance of payments in 1953. Opposition to Japanese trade with countries in the Communist Bloc is due to the West's trade sanctions and the possibility that economic or political cooperation with communist China could result in a security threat to the United States. Topics include the Japanese export program and American economic aid to Japan.

During 1953 it has become evident that the foreign economic policies of both the United States and the USSR are on the verge of great and far-reaching changes. Events are forcing the statesmen's hands. And the crucial question for us is whether we can seize the initiative and shape coming events to our advantage, or whether the Soviets will take the lead. [ABSTRACT FROM AUTHOR]

The article refers to a study by Howard S. Piquet, "Aid, Trade and the Tariff," and discusses the impact of tariff and quota suspensions on the trade gap and the U.S. economy. Research suggests that suspension of import duties will not solve the trade balance or the "dollar gap" problems. Statistics show the amount of U.S. foreign aid that is subsidizing exports from overseas countries and the economic effect of tariff and quota suspensions on commodity groups. Topics include research methods, trade with the Philippines, and quotas legislation in the United States.

People the world over are anxiously watching to see what the new Administration's legislative program will include in the way of tariff changes. Those who are most fearful recall that it was a Republican Administration, which sealed the fate of the League of Nations after World War I. They recall, too, that the Republicans concluded their last period in control of the government with the passage of the Smoot-Hawley Tariff, the highest tariff barrier ever enacted by this nation. [ABSTRACT FROM AUTHOR]

The article examines the United States' restrictive trade policy with Communist-dominated countries. The purpose of the American embargo policy is to stop all trade between East and West, but Western European countries are reluctant to join. The Western bloc are concerned with: traditional trading patterns that make countries dependent on trade with the East; trade with the Soviet Union and Eastern Europe that could alleviate the dollar gap and allow raw materials to be imported from non-dollar areas; and East-West trade that can prevent "price softness" and heavy inventories as well as strengthen commodity prices. Topics include the 1949 Export Control Act, trade with China, and contraband activity.

The article reports on the activities of the International Labor Organization (ILO) and argues that ILO is supporting Socialist ideology via government regulation and control of production. The ILO is a United Nations agency that provides technical assistance to and "operational activities" in member countries, which permit the ILO to recommend socialistic methods for implementing economic policy. American business cannot ignore ILO because the United States is committed to a policy of international cooperation and the ILO provides an international platform for developing free enterprise. Topics include eight suggestions for cooperating with the ILO and a reference to the book "The Power of People," by Charles P. McCormick.