F.— ECONOMIC SCIENCE AND STATISTICS 123 



returns to its efficiency level with that of foreign competitors. It is then 

 thought that the elasticity of demand for British exports in the world's 

 trade will be such that expansion of a more rapid kind will take place. 



It is at this point that attention is naturally drawn to the side of demand 

 and markets, to inquire if they cast any light upon these issues. The 

 missions sent from this country to selected markets went to find out why 

 Britain was losing her status in those areas, and within the limits of their 

 opportunity gave certain answers. 



The evidence bears upon three issues of importance affecting Britain's 

 access to overseas markets : 



(i) The characteristics of the market. 



(2) The structure and efficiency of the distributing organisation. 



(3) The position with regard to tariffs and the use of commercial 

 diplomacy. 



The Sales Position in the Markets. 



It is, no doubt, difficult to make any generalisations which cover so man 

 different types of markets and so many commodities without introducing 

 undue simplification. It is obvious that there are markets like Indiag 

 where Britain sells 5^.' of manufactures per head of population each year, 

 and the Far East, where in a good year she may sell i^. 6d. per head of 

 estimated population, at one end of the scale, and at the other end countries 

 like Australia and New Zealand, where j^io per head is sold, whilst in 

 between come areas such as Canada and Newfoundland with £2 los. per 

 head, the South American States with 365. to 40^., and Scandinavia with 

 28s. to 2,0s. In a populous low-grade market such as China, an increase 

 in general prosperity is a most influential factor on purchases, whereas in 

 a highly developed country an increase in numbers is for most industries 

 an equally favourable sign. 



In spite of these difficulties and limitations a few general matters 

 raised by the Economic Missions may be surveyed. It seems generally 

 agreed that an increased choice of all classes of goods has become open 

 to the overseas purchasers, and that the field of effective competition has 

 broadened in most classes of goods, so that traditional business connec- 

 tions of a semi-monopolistic kind have lost much of their value. As this 

 heritage of predominance was often British, it has followed that the offer 

 of alternative choices affected her more than most other countries ; the 

 passing of exclusive markets has also meant that a much closer degree of 

 adaptation to market requirements must be aimed at, since standard articles 

 of consumption have to bear an increased psychical wear and tear. This 

 raises serious difficulties for the producer who had hoped to maintain 

 mass output methods, but it appears to be a definite trend both in highly 

 developed markets where it might be expected and also in more general 

 markets such as India where it might not be expected. It must be kept 

 in mind that methods of sale in the home market and in countries such 

 as the U.S.A. and Australia have made rapid advance within recent years, 

 and this striking change in outlook regarding sales and demand is bound 



^ 1927 estimates. 



