ECO3701 Lecture Notes - Lecture 8: Credit Risk, Franchising, Oligopoly
Document Summary
Chapter 9 foreign market entry and international production. Indirect exporting: the home-country firm relies on another firm known as a sales agent or trading company to complete the export transaction. Direct exporting: the home-country firm takes on the export transaction itself, this can include the research, marketing, finance, and logistics requirements of the trade transaction. The export-import bank of the united states (ex-im bank) is the official export credit agency of the u. s. government. Operating as a government corporation, the bank finances and insures foreign purchases of united states goods for customers unable or unwilling to accept the credit risk. The bank was established in 1934 by an executive order, and made an independent agency in the executive branch by congress in 1945. Congressional authorization for the bank lapsed as of july 1, 2015. As a result, the bank could not engage in new business, but it continued to manage its existing loan portfolio.
