IBUS 462 Lecture Notes - Lecture 9: Foreign Exchange Risk, Trade Finance, North American Free Trade Agreement
5 Dec 2018
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Document Summary
Exporting is on the rise thanks to the decline in trade barriers under the wto and regional economic agreements such as the eu and nafta. Exporting firms need to: identify market opportunities, deal with foreign exchange risk, navigate import and export financing, understand the challenges of doing business in a foreign market, learn about financing and export credit insurance. Firms that do not export lose out on huge opportunities for growth and cost reduction. Large firms tend to be pro-active in seeking foreign opportunities, while medium and small-sized firms are slow to respond: too busy with local side of business. Intimidated by mechanics of exporting to a foreign country: the promise and pitfalls of exporting. Exporting is a way to increase market size the rest of the world is usually much larger market than the domestic market (marlin steels wire products). Large firms often proactively seek new export opportunities.
