- 10 Marks
AFM – Nov 2017 – L3 – Q4b – Trading and planning in a multinational environment
Draft memorandum setting out key points for opening an export business, including pricing, risks, credit terms, and market representation.
Question
A company manufacturing specialized electronic equipment has so far sold only inside the country where it is established. It has considerable surplus capacity, and the Chairman has asked you, as his Finance Director, to prepare a draft memorandum for the board on his proposal to open up export business to a number of countries.
Required:
Draft this memorandum, setting out the main points that would need to be considered before arriving at a final decision, under the following headings:
- i) Export pricing and profitability
- ii) Credit terms and methods of obtaining payment
- iii) Risks and methods of avoiding them
- iv) Forms of representation or local organization in export markets.
Find Related Questions by Tags, levels, etc.
- Tags: Credit terms, Export market representation, Export pricing, Export risks
- Level: Level 3
- Topic: Trading and planning in a multinational environment
- Series: NOV 2017
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