1. What was the motivation for Megahertz’s shift toward a strategy of export-led growth? Why do you think the opportunities for growth might be greater in foreign markets? Do you think that developing countries are likely to be a major market opportunity for Megahertz? Why?
2. Does Megahertz’s strategy for building exports make sense given the nature of the broadcast industry? Why?
3. Why do you think Megahertz found it difficult to raise the working capital required to finance its international trade activities? What does the experience of Megahertz tell you about the problems facing small firms that wish to export?
4. Megahertz solved its financing problem by selling the company to AZCAR of Canada. What other solutions might the company have adopted?

Established in 1982, U.K.-based Megahertz Communications quickly became one of Great Britain’s leading independent broadcasting system builders. The company’s core skill is in the design, manufacture, and installation of TV and radio broadcast systems, including broadcast and news-gathering vehicles with satellite links. In 1998, Megahertz’s managing director, Ashley Coles, set up a subsidiary company, Megahertz International, to sell products to the Middle East, Africa, and Eastern Europe.