MGT3460Chapter19 - Can they produce anything to produce...

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Chapter 19 22:10 Letter of Credit – (who guarantees what?) Time Draft (60-180 days) Bill of Lading Mini-Case – Manitoba Machine Tools Kazakhstan o Lots of oil o Lots of neighbors (Russia) Don’t want to have Russia or china as an enemy o Goes to countries like Canada (risk neutral) to buy materials But currency trade is not good (need to look at other mechanisms) Need to do something in terms of a buy-back transaction o If it can be executed it is something to think about o Big if If Manitoba machine tools produce this equipment
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Unformatted text preview: Can they produce anything to produce with those machine tools that Canada may want since we already have access to those machine tools Can they provide us with something that is a price that is cheaper than we can do here • Keeping in mind, transportation costs (from Kazakhstan to Canada) o Where are the nearest ports? • They must give Canada something they don’t already have and sell to Canada at a reasonable (cheaper) price o if they do, buy it 22:10 22:10...
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