Trade

A few years ago, Irvine-based Cardiac Science Inc. was like a lot of small firms itching to break into international markets. The manufacturer and distributor of cardiac medical devices had products it knew foreign customers would like. But where in the world to begin? "Figuring out how to export is a daunting task for a lot of small businesses because they simply don't know where to start," said Raymond Cohen, president and chief executive of the publicly traded company. "We were no exception."

Exporters and importers face special risks that don't necessarily threaten companies doing only domestic commerce. Although you can insure most of these risks, it pays to think carefully just how you do so. The risks include: * Theft and pilferage; * Loss in transit; * Credit risk; * Product liability; * Patent infringement; and * Expropriation and kidnap. None of these threats, of course, dissuades American companies from doing business overseas.

After a decade as California state director of international trade, Greg Mignano did what a lot of other folks do--he went into business for himself as a consultant. But instead of courting corporate clients and big-money contracts for overseas trade, he focused on small businesses.

Nobody had to tell Perry and Marie Solomon that they had a good thing going in the early years of this decade. Their Chatsworth business, Smart & Friendly Inc., makes high-tech data storage systems using recordable and rewritable compact discs. It was founded 16 years ago, and until a year ago its revenue grew at an annual rate of about 20%. Now, because somebody told the Solomons about the U.S.

No matter the turmoil in Asian financial markets, business owners in Southern California want to sell their goods overseas--and quail at the hazards inherent in foreign trade. Of the hazards, two in particular make business owners toss and turn at night: * The risk that your foreign customers won't pay for your goods. * The reluctance of U.S. banks to finance foreign business with loans against receivables and inventory.

Locke High School in Watts introduced an international trade course using the Internet Monday, and school officials called it the only one of its kind in the country. World Business Exchange Network, a Los Angeles based-computer company, will provide Internet access to the class. Company President Roosevelt Roby called on other business leaders to work together to train high school students for professions when they graduate.

A coalition of technology companies and advocacy groups has launched a broad lobbying campaign to oppose strict U.S. export limits on computer encryption, a technology that scrambles information to enhance security. Americans for Computer Privacy said it opposes any new limits on computer data-scrambling technologies and seeks relaxed exports. The coalition includes Santa Clara-based Intel Corp., Palo Alto-based Sun Microsystems Inc., the National Assn. of Manufacturers and others.

Does the word forfaiting mean anything to you? If so, you understand one of the best-kept secrets of international trade financing, and you have a leg up on American exporters who know nothing of this powerful tool. Common in Europe but not in the United States, forfaiting eliminates the cash-flow problems, not to mention the collection uncertainties, that come with long-term foreign sales.

U.S. steelmakers and workers accused producers in Russia, Japan and Brazil of dumping steel in the U.S. market and asked the government to impose hefty duties on the imports. The United Steelworkers of America union joined 12 U.S. steel companies in filing what they said was the first of a number of cases in protest of surging steel imports that are forcing domestic production cutbacks and layoffs.