Short Case 1
Everest Company has been exporting its line of mountain-climbing equipment to buyers worldwide for 30 years. Top markets include: France, Norway, Switzerland, India, and Japan. Customers in these countries always pay in the local currency. Everest’s vice president for international sales often states that the firm’s biggest day-to-day challenge is dealing with foreign currencies. Why do you think he says this? What are the consequences of fluctuating exchanger rates for Everest’s sales revenue and other performance indicators?
Short Case 2
Antenna Communication Technologies, Inc. (ACT) is a small satellite technology communications firm. Its product is a multiband antenna that allows customers in the broadcast industry to receive signals from up to thirty-five satellites simultaneously. The firm has little international business experience. ACT recently hired you as its export manager and based on extensive research, you find substantial demand for the product in Africa and China. Having followed most of the steps in the organizing framework for exporting, you decide direct exporting is the best entry strategy for ACT. Your next task is to find distributors in the target markets. How will you approach this task? What resources should you access to find distributors in these markets? Once established, what is the best way to maintain slid relations with those foreign distributors? Finally, what payment method should ACT use for most of its prospective markets?
Short Case 3
Marite Perez is a CEO of Havana, Inc. a large manufacturer of high-tech medical equipment based in North Miami Beach, Florida. The firm makes vital signs monitors, MRIs, X-ray machines, and other equipment for exploratory medical diagnostics. Marite wants to rapidly expand the firm into foreign markets. To accomplish this, she plans to invest much money in developing new products and establishing production and marketing subsidiaries abroad. What can Marite do to raid capital for these projects? What are the various methods that Marite might employ to raise capital for her firms? When identifying options, please provide 2 advantages and disadvantages of those options and explain fully.
