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




. You are the assistant to the CEO of a small technology firm that

manufactures 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 the CEO?



 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?