Case Study Questions

$1.$ Florida B$.$P$.$ found it challenging to manage the production and shipping expenses related to

exporting overseas. After meeting with its chosen bank, it decided to include a $10$ percent

advance payment in its export contracts to assist with this challenge. What other strategies could

the company implement to assist with managing expenses related to exporting overseas? $(2$

Marks$)$

$2.$ Florida B$.$P$.$ chose to use a debt collection agency to attempt to recover payment from Fraser

Transport in Scotland. What alternative options could it have pursued to resolve the outstanding

amount? $(2$ Marks$)$

$3.$ When searching for a bank or financial institution to provide assistance in exporting

internationally, what process should Florida B$.$P$.$ have followed? $(2$ Marks$)$

$4.$ Florida B$.$P$.$ has become more competitive by offering flexible payment options and extended

financing terms to clients; however, it is continuing to price contracts in U$.$S$.$ dollars, which is

disadvantageous to buyers. What other strategy could it use to minimize its foreign exchange

risk and become more competitive? Give reasons for your answer. $(2$ Marks$)$

$5.$ What is your recommendation for Florida B$.$P$.$ for their International Trade Trade Finance

practices? $(2$ Marks$)$