BM1917

QUIZ ON EXPORTING, IMPORTING, AND COUNTERTRADE

NAME: SECTION: DATE: SCORE:

Questions (3 items x 5 points):

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 export to the Philippines effectively.

2. 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?

3. 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?

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS

Provided pieces of evidence, supporting
Content 3
details, and factual scenarios
Expressed the points in a clear and logical
Organization of Ideas 2
arrangement of ideas in the paragraph
TOTAL 5

11 Quiz 1 *Property of STI

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