International Business 3rd Edition - Charles HillIrwin McGraw-Hill
Student Resources
 Chapter 15: Exporting, Importing and Countertrade

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Critical Discussion Questions

  1. 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.

  2. You are the assistant to the CEO of a small textile firm that manufactures high-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 to the CEO?

  3. 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 York to the Ukrainian Republic?

  4. How do you explain the popularity of countertrade? Under what scenarios might its popularity increase still further by the year 2005? Under what scenarios might its popularity decline by the year 2005?


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