UC Irvine

The growth in international trade during the last twenty-five years has been dramatic. During this period exports have become a more important part of the American economy (see table 1). In 1960 America exported $19.6 billion of merchandise and $213.1 billion in 1985. Exports as a percentage of GNP were 3.9 percent in 1960 and 5.8 percent in 1985. When exports of services are included, this latter figure approaches 10 percent. Despite this substantial growth, America's share of world trade has declined substantially during the period - from 15.4percent to 11.0 percent. Even though saturated domestic markets and increasing foreign competition force managers of American firms to rethink their competitive scope' and strategies [74], U.S. industries continue to lose ground. It is our proposition that this decline in America's competitiveness is in part due to a regression in the country's knowledge in international marketing.