Free Online Course in International Business

Knowledge Statement

Knowledge of Forms of Medium- and Long-term Financing:  Government-supported Finance, Finance Provided by Banks and Financial Institutions, and Lease Financing

Activity

This activity can be done as an individual or as a small group assignment.  The individuals can then present their findings to the class as a whole.

Open the country limitation schedule for Ex-Im Bank (www.exim.gov).  Use the schedule to begin your analysis for the following situations.

1.                     Select three countries where financing coverage is not provided by Ex-Im Bank.  Review the notes and the definition of terms at the end of the schedule and discuss the notes for the countries you have selected.  Having evaluated Ex-Im Bank’s reasons for not providing coverage, select one of the three countries and evaluate the political and economic associations with the United States.

2.                     Select three countries that provide complete coverage with some conditional notes under Ex-Im Bank.  Review the notes and the definition of terms at the end of the schedule and discuss the notes for the countries you have selected.  Having evaluated Ex-Im Bank’s reasons for providing coverage, select one of the countries and evaluate the conditions from economic and political view points that would make the program attractive to a foreign buyer over financing options available in the country.

3.                     Select three countries that have open coverage without any note conditions by Ex-Im Bank and evaluate the political and economic differences of all three countries to the United States.  Your analysis should include whether Ex-Im Bank’s programs are more attractive to the buyer than financing available in the respective countries.

4.                     Select three countries that have partial coverage in either the public or private sectors.  Review the notes and the definition of terms at the end of the schedule and discuss the notes for the countries you have selected.  Having evaluated Ex-Im Bank’s reasons for providing partial coverage, select one country and discuss the political and economic conditions that support Ex-Im Bank’s decision to provide partial coverage.