Exporting, Importing, and Countertrade
OPENING CASE: Exporting and Growth for Small Businesses
THE PROMISE AND PITFALLS OF EXPORTING
Management Focus: FCX Systems
IMPROVING EXPORT PERFORMANCE
An International Comparison
Management Focus: Exporting with a Little Government Help
Utilizing Export Management Companies
Management Focus: Export Strategy at 3M
Management Focus: Red Spot Paint and Varnish
EXPORT AND IMPORT FINANCING
Lack of Trust
Letter of Credit
Bill of Lading
A Typical International Trade Transaction
Export Credit Insurance
The Incidence of Countertrade
Types of Countertrade
The Pros and Cons of Countertrade
CRITICAL THINKING AND DISCUSSION QUESTIONS
CLOSING CASE: Megahertz Communication
1. Explain the promises and risks associated with exporting.
2. Outline the steps managers can take to improve their firm’s export performance.
3. Identify information sources and government programs that exist to support exporters.
4. Grasp the basic steps involved in financing exporting.
5. Articulate how countertrade can be used to facilitate exporting.
This chapter focuses on the “nuts and bolts” of exporting and importing. The promise and pitfalls of exporting are discussed, along with a discussion of the role of export management companies in the internationalization process. The chapter also provides a nice discussion of export financing. In this section, the author discusses the financial devices that have evolved to facilitate exporting including: the letter of credit, the draft (or bill of exchange), and the bill of lading. The section ends by providing an example of a typical international trade...