EECS 1530 Lecture Notes - Lecture 27: Sports Equipment, Small Business
21 Jun 2018
School
Course
Professor
EECS 1530 Lecture 27 Notes
Introduction
Small business dilemma
Identifying Factors That Will Affect the Foreign Demand at the Sports Exports Company
Jim Logan planned to pursue his dream of establishing his own business (called the
Sports Exports Company) of exporting footballs to one or more foreign markets.
He has decided to initially pursue the market in the United Kingdom because British
citizens appear to have some interest in football as a possible hobby, and no other firm
has capitalized on this idea in the United Kingdom.
The sporting goods shops in the United Kingdom do not sell footballs but might be
willing to sell them.
Logan has contacted one sporting goods distributor that has agreed to purchase
footballs on a monthly basis and distribute (sell) them to sporting goods stores
throughout the United Kingdom.
The distributor’s demand for footballs is ultimately influenced by the demand for
footballs by British citizens who shop in British sporting goods stores.
The Sports Exports Company will receive British pounds when it sells the footballs to the
distributor and will then convert the pounds into dollars.
Logan recognizes that products (such as the footballs his firm will produce) exported
from U.S. firms to foreign countries can be affected by various factors.
Identify the factors that affect the current account balance between the United States
and the United Kingdom.
Explain how each factor may possibly affect the British demand for the footballs that are
produced by the Sports Exports Company.
International Financial Markets
The growth in international business over the last 30 years has led to the development
of various international financial markets.
Document Summary
Identifying factors that will affect the foreign demand at the sports exports company. Identify the factors that affect the current account balance between the united states and the united kingdom. Explain how each factor may possibly affect the british demand for the footballs that are produced by the sports exports company. The growth in international business over the last 30 years has led to the development of various international financial markets. Financial managers of mncs must understand the available international financial markets so they can be used to facilitate the firm"s international business transactions. That will affect the foreign demand at the sports exports company. Jim logan planned to pursue his dream of establishing his own business (called the. Sports exports company) of exporting footballs to one or more foreign markets. The sporting goods shops in the united kingdom do not sell footballs but might be willing to sell them.
