Unformatted text preview: Critical Thinking and Discussion Questions . A firm based in Washington State wants to export a shipload of finished lumber to the Philippines. The would-be importer cannot get sufficient credit from domestic sources to pay for the shipment but insists that the finished lumber can quickly be resold in the Philippines for a profit. Outline the steps the exporter should take to effect this export to the Philippines. . You are the assistant to the CEO of a small textile firm that manufactures quality, premium-priced, stylish clothing. The CEO has decided to see what the opportunities are for exporting and has asked you for advice as to the steps the company should take. What advice would you give the CEO? . An alternative to using a letter of credit is export credit insurance. What are the advantages and disadvantages of using export credit insurance rather than a letter of credit for exporting (a) a luxury yacht from California to Canada, and (b) machine tools from New Yorkto Ukraine? . How do you explain the continued existence of countertrade? Under what scenarios might its popularity increase still further by 2010? Under what scenarios might its popularity decline? . How might a company make strategic use of countertrade schemes as a marketing weapon to generate export revenues? What are the risks associated with pursuing such a strategy? . Reread the Management Focus on FOX Systems, then answer the following questions: a. What lessons about the requirements for export success can be drawn from the
story of FCX? b. Why do you think FCX terminated its relationship with an international distribution
company and started to export on its own? c. What does the story of FCX tell you about the importance of foreign markets for
the growth of a small enterprise? . Reread the Management focus on Red Spot Paint and Varnish. What basic lessons about exporting strategy can be drawn from the example of Red Spot Paint and Varnish? ...
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- Spring '12
- International Trade, Thought, Trade finance, Red Spot Paint