Problem 1: You want to understand the mechanisms for financing exports and imports as they relate to your business, which has never before exported or imported any goods (you have operated completely within your own province). Your company is small, at fewer than 25 employees, but you hope that it will grow substantially in the future. Do you believe that the complexity of export financing deters small firms such as yours from becoming involved in exporting? Is there a role for government? Explain with reference to the BDC.
Problem 2: How does an international firm decide where to locate its manufacturing activities? Consider the key factors involved in making location decisions, which entail the dual considerations of minimizing costs and increasing quality. A consideration and weighing of all of the issues involved will result in the best overall decision. What are the hidden costs of foreign locations that your company should also consider?