ADVERTISING THROUGH FOREIGN REPRESENTATIVES 299 Advertising through Local Foreign Representatives.— Manufacturers who have resident representatives abroad sometimes entrust their local advertising campaigns to these representatives, limiting them only as to the amount of money which they may spend. The representatives either attend to the matter themselves or entrust it to a local agency. Such a policy is not to be recommended because: (1) it leaves out the advantages which accrue from a personal supervision of all publicity work by the advertising manager of the concern; (2) it foregoes the benefits of the superior skill which Americans have attained in the art of advertising. A representative's knowledge of local conditions should be utilized; his suggestions and criticisms should be invited; but the advertising itself, in order to be most successful, should be carried on under the control of the exporting manufacturer's organization and with the assistance of some reliable advertising agency in the United States. REFERENCES ARNOLD, F. A. Survey and Method of Advertising for Foreign Trade. Porceedings of the Sixth National Foreign Trade Convention, 1919. Pp. 217-231. ALLEN, E. H. The Development of Export Business through Advertising. Proceedings of the Eighth National Foreign Trade Convention, 1921. Pp. 281-297. COOPER, C. T. Foreign Trade Methods and Markets, Chaps. IV, XIII, XIV. DUDENEY, F. M. The Exporter's Handbook and Glossary, Chaps. XIV, FILSINGER, E. B. Exporting to Latin America, Chaps. IV, XIII, XIV. KIDD, H. C. Foreign Trade, Chap. XIX. PRECIADO, A. A. Exporting to the World, Chap. XX. SANGER, J. W. Publications of the Bureau of Foreign and Domestic Commerce. Advertising Methods in Cuba. (Special Agents Series No. 178.) Advertising Methods in Chile, Peru and Bolivia. (Special Agents Series No. 185.) Advertising Methods in Argentina, Uruguay and Brazil. (Special Agent Series No. 190.) TOSDAL H. R. Problems in Exports Sales Management. Pp. 329–346. VEDDER, G. C. American Methods in Foreign Trade. Chaps. XV, XVIII. WYMAN, W. F. Direct Exporting Course in Foreign Trade. Vol. V, Chap. VI. WYMAN, W. F. Export Merchandising, Chap. XVI. The subject of Export Advertising has received a great deal of attention during the past few years and numerous articles dealing with this problem may be found in such periodicals as Export Trade and Exporters' Review, Printers' Ink, The World's Markets as well as in the Proceedings of the Annual Foreign Trade Conventions. CHAPTER XXI COMBINATIONS FOR EXPORT TRADE Combinations in Foreign Countries.-The advantages resulting from combinations lie in the greater efficiency which may be developed and in the savings which may be effected through cooperative action in every line of economic endeavor, whether it be production, transportation or marketing of commodities. These advantages accruing from combinations were recognized many years before the Great War by the competitors of the United States in the world's markets. One of the most prominent factors in the development of German export trade were cartels or cooperative export associations. German cartels are of various kinds, some regulating conditions of sale and terms of payment; others fixing prices either directly or indirectly, by controlling production; still others providing one central selling organization. The selling cartel is the most highly developed type of cartel. It existed before the War in the German dye industry, which operated as a unit in foreign trade under the leadership of two great groups of allied producers working under a fifty-year agreement. Half of the coal and coke exported from Germany was sold by one central agency; two selling agencies, closely allied, handled the export of iron and steel; and a similar organization existed in the manufacture and sale of electrical equipment. Cartels were established in Germany after the crisis in the middle seventies of the last century; their number rose from fourteen in 1879 to eighty-five in 1885, two hundred and ten in 1890, four hundred in 1902 and about six hundred in 1911. The syndicates of France and Belgium are organizations similar to German cartels; like the latter, they are agreements between firms maintaining their independence but aiming to eliminate wasteful competition and to gain, through cooperation, a control over markets. Such syndicates are to be found in iron and steel, coal, glass, and a number of other industries of Belgium and France. In Great Britain the great coal-export business is done largely by powerful organizations which combine the mining and marketing of coal with the operation of shipping lines and the maintenance of foreign distributing companies. A strong union of British manufacturers of cement handles their overseas trade in that product, and similar cooperative bodies exist among the manufacturers of machinery, pottery, chemicals, textiles, electrical appliances, soap, etc. Organizations of one kind or another, uniting the interests of producers, both in their domestic and foreign commercial relations, are to be found also in most of the other European countries as well as in many South American republics and in Japan. It is estimated that before the outbreak of the War there were more than 2500 combinations in different countries outside of the United States. Since the War cooperative efforts as a means of facilitating sales abroad have become general among the leading nations of Europe, the governments recommending the extension and consolidation of the already existing organizations and encouraging the formation of new ones. In Germany enterprises engaged in foreign trade were welded together into one organization under the name of the Association of German Export Firms. This organization, with headquarters in Berlin, includes manufacturing and shipping concerns. An insight into the workings of the Association may be gained by considering that upon its establishment it proceeded to make a thorough investigation of export markets for certain products, such as machinery and engineering supplies. The purpose of this study was to ascertain the amount of American and British THE WEBB-POMERENE LAW 303 competition to be met. The Association classified the markets into two categories, those in which the competition was likely to be keen and those in which it was expected to be more or less negligible. The policy adopted was to standardize and simplify all machines, appliances and tools for the first class of markets, and to individualize the commodities so as to meet the specific requirements of the second class. During the War the most important French chambers of commerce and associations of merchants, manufacturers and transportation companies banded themselves together into a National Association for Economic Expansion. This Association, which was formed in 1915, made a survey of the agriculture, industry and commerce of France and it has since perfected arrangements to supply French exporters with information regarding foreign customs duties, import and export regulations, freight rates, taxes and trade opportunities. Another trade-promoting body which was recently organized is the National Union for the Exportation of French Goods and the Importation of Raw Materials. It aims to foster combinations of small manufacturers and merchants. The advantages of doing business in foreign countries through combinations are apparent when the execution of an important contract is to be undertaken. In China, representatives of German cartels obtained many contracts because they were able to undertake the work of opening mines, providing the necessary tools and machinery, tracks, locomotives and other essentials. Manufacturers acting singly were at a distinct disadvantage. The Chinese Companies intending to open mines, as a rule, preferred dealing with a single enterprise to placing a number of separate orders with private firms. In order to compete with German cartels there was organized in England in 1915 the Anglo-Chinese Engineers' Association. The Webb-Pomerene Law.-Before the passage of the Webb-Pomerene Act, in April, 1918, American manufac |