Activity in the international market has anchored UPS' gains over the past year.

A United Parcel Services Inc. survey of 600 decision-makers at small- to medium-sized enterprises in the United States found that 67 percent of their companies do not trade globally and that they perceive the U.S.’s closest neighbors Canada and Mexico to be the most attractive foreign markets.

“This survey shows that many American SMEs haven’t gone global yet,” David Abney, chief operating officer of UPS, said in a press release issued Oct. 9. “And if they don’t take part in trade, they stand to lose their competitive edge in a business environment that continues to transcend international borders.”

To substantiate his claim, Mr. Abney cited a January 2006 McKinsey Quarterly report that says 1 billion new consumers are expected to enter the global marketplace during the next decade as a result of economic growth in emerging markets.

Among the reasons that respondents gave for not engaging in international trade were a perception that it is too risky, a lack of knowledge about international markets, unfamiliarity with customs regulations and disinterest in expanding business beyond U.S. borders.

The survey found that the decision-makers’ companies that both import and export, usually see foreign countries as a bigger opportunity than those that do only one or the other. Canada was considered by 72 percent of this group and Mexico by 56 percent to provide the most opportunities.  Canada and Mexico also remained the most favored with companies that only export or import.

China also was considered favorably by all three categories with Brazil, India and Russia somewhat less so.

Forty-four percent said that they are more likely to expect an increase in exports, although one-third, 32 percent, also expect an increase in importing in response to the question: Do you expect your business outside the United States to increase, decrease or stay the same in the next 12 months?

Titled, the UPS Business Monitor United States, the survey’s conclusions are similar to those found in the UPS Canada Business Monitor released in August, which showed that 28 percent of Canadian respondents said they source products outside Canada and only 21 percent sell products internationally.

New York-based TNS Media Intelligence, an affiliate of the London-based TNS Group, conducted the U.S. survey between May and June. The decision-makers were from companies with annual revenues ranging from $250,000 to $50 million. UPS was not identified as the sponsor of the survey.

To learn more about the study, send an email to Lindsey.Larkins@edelman.com.