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Global Business Today

Charles W. L. Hill Dr, G. Tomas M. Hult

Chapter 14

Exporting, Importing, and Countertrade - all with Video Answers

Educators

Chapter Questions

01:57

Problem 1

A firm based in California 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.

Rashmi Sinha
Rashmi Sinha
Numerade Educator

Problem 2

You are the assistant to the CEO of a small technology firm that manufactures quality, premium-priced, stylish clothing. The $\mathrm{CEO}$ 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?

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Problem 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 Ukraine?

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04:01

Problem 4

How do you explain the use of countertrade? Under what scenarios might its use increase further by 2020 ? Under what scenarios might its use decline?

Xiaomin Bian
Xiaomin Bian
Numerade Educator

Problem 5

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?

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