A couple of months ago, I wrote about the signs of protectionism emerging within many countries (including the U.S.), as noted in a World Bank study, “Trade Protection: Incipient but Worrisome Trends.”

While politicians may try to win votes by stoking voters’ fears of the world outside their home countries, many business executives, in contrast, are looking to foreign markets for growth. That’s one conclusion of a recent survey of 500 senior execs in the U.S. by HSBC Bank USA, the “U.S. Survey on International Business”. In fact, the proportion of executives boosting their overseas sales targets jumped from 49 to 56 percent between 2008 and 2009. Three emerging markets – Brazil, China, and India – look most promising, the survey found.

“People are still looking for overseas growth,” says Christopher Davies, senior executive vice president and head of commercial banking with HSBC. “They haven’t gone into their shells.”

To be sure, the responses showed that execs are carefully navigating today’s markets. For instance, one company increased its presence in smaller markets in order to limit exposure to a single large market. Another was more closely monitoring exchange rates, in an effort to capture the best rates when transferring money between countries.

Respondents also identified several challenges that limited international growth. In descending order, these were: foreign competitors, the high cost of doing business internationally, and the difficulty of maintaining customer and vendor relationships at a distance.

Along with a commitment to international sales, executives also are zeroing in on expenses, the study showed. “There was a strong flavor of cost management and efficiency management this year,” Davies says. Two-thirds of respondents indicated that they were scrutinizing all facets of their operations, looking for ways to boost efficiency.

As part of this effort, as well as of a desire to boost visibility into their cash flows, nearly a quarter of respondents (23 percent) said they were moving to a more centralized treasury function. Only 4 percent were shifting to a more decentralized approach.

Clearly, executives have not let economic conditions blind them to the potential opportunities available and are taking steps to position their firms for the recovery. In fact, 65 percent said they expected their companies to be stronger once the economy turns. “We’re seeing a fairly broad opinion that the potential is out there,” Davies says. “There’s reason for optimism.” ###