International Business ModB Instructor Guide Module Geringer Mcnett Ball Importer Brings Plain Sports Shirts Into

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International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

Bonus B-13

Education.

can research different cases where a country has applied these practices, whether it is the

export of weapons, food, chemicals used for executions, or other products. The students’

findings can provide a strong basis for discussion or debate on these issues. Virtual teams can

be assigned questions and submit their work as a group. Alternatively, virtual teams can be

assigned to take different roles or perspectives to argue for (or against) and these assignments

can be submitted as a group and then opened up to discussion and debate on an online class

discussion site or blog, or presented and debated in a face-to-face setting.

Face-to-Face: Students develop responses to the questions in class in teams/groups, or else

assign perspectives and conduct an in-class debate and discussion.

1. Should home-country ethics be applied to exports?

The answers to this question will vary, and it is intended to help people think through the issues

from various perspectives. It is not uncommon for some students to suggest that there are

2. Should quality standards thought appropriate for the domestic market be maintained for

export markets in areas such as pharmaceuticals? Should the United Kingdom, which has

outlawed the death penalty, export execution drugs to the United States?

3. To what degree are ethics domestic and to what degree are they universal? What do you

think?

This question can raise interesting issues for discussion and debate. Some students may suggest

that ethics are linked to cultures and their institutions, which would imply that they are

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

Bonus B-14

Education.

GET THAT JOB! FROM BACKPACK TO BRIEFCASE: Cameron Mauzy: Internationalizing through

Learning a Language and Immersing Abroad

1. Mauzy mentioned that he used to be concerned about just moving to another state, but

now he is actively engaged in traveling to and living in China. How does one overcome the

fear of traveling to and living in new places?

2. How is moving from one state or province to another like and unlike moving to another

country?

Student answers will vary depending on their experiences. This is an especially good question

3. Mauzy mentioned that it is important to be flexible. Why is that so important?

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

END OF MODULE EXERCISES

CRITICAL THINKING QUESTIONS

1. In exporting, at what point does the risk of loss or damage pass to the buyer? Use

Incoterms to explain your response.

2. Explain the protection the various export payment terms offer the seller.

Cash in Advance offers most protection to the seller because the seller receives payment before

3. How does the bank operate as an intermediary in an L/C transaction?

4. The manager of the international department of the Cape Cod Five Bank learns that the

ship on which a local exporter shipped Wellfleet oysters in saltwater tanks to Spain has sunk

in high seas. She has received all the documents required in the letter of credit and is ready to

pay the exporter for the shipment. In view of the news about the ship, the manager now

knows that the Spanish customer will never receive the goods. Should the manager pay the

exporter, or should she withhold payment and notify the overseas customer? Explain your

answers.

5. How might the use of a free trade zone impact the pricing of an imported good composed

of French and domestic components that was assembled in the FTZ?

6. What are the consequences of losing an export bill of lading for a shipment you need to

collect?

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

7. An importer brings plain sports shirts into the United States because the import duty is

lower than it is for shirts with adornments. In New Jersey, the importer sews on a figure of a

fox. Could the importer do this operation in a foreign trade zone with no cost impact?

8. How would you find sources for a product that you saw when traveling in Myanmar and

want to import to sell in your design studio?

9. “Exporting is so complicated it’s not worth the extra hassle.” How might you respond to

this statement made by your company’s director of marketing?

The answers to this question may vary, but the module’s introduction notes that reluctance to

engage in exporting is often linked to a lack of knowledge, particularly regarding how to identify

promising foreign markets and customers, understanding payment and financing procedures,

10. Exporting contributes about 12 percent to the U.S. GDP, which is low compared to other

developed nations. Why might this be the case?

GLOBALEDGE RESEARCH TASK

Exercise 1

“Export Tutorials” can be found in the Reference Desk section of globalEDGE. You can also access

the resource by searching for “Export Tutorials”. The first available category is “Export

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

Bonus B-17

Education.

Search Phrase: Export Tutorials

Resource Name: Export Tutorials

Resource Link: https://globaledge.msu.edu/reference-desk/export-tutorials

Exercise 2

“Export Tutorials” can be found in the Reference Desk section of globalEDGE. You can also access

the resource by searching for “Export Tutorials”. The second available category is “Government

Regulations” where the requirements for licensing can be found in the first line. The two

MINICASE: Nashville Guitar Store

This minicase provides an opportunity for students to examine a situation in which a company

is purchasing products (guitars) that fail to meet buyer specifications, creating an opportunity

for the company to refurbish the product to an acceptable level of quality. The products are

then resold, with a portion of these going to foreign customers.

1. Can you think of other possible businesses that could use this import-add value-re-export

strategy?

2. Are there ways Mark could vertically integrate to capture more of the value his business

adds to the guitars?

Answers can vary here. He could potentially set up activities online or in brick-and-mortar

facilities to actively seek out damaged guitars or guitars that are in need of updating, thereby

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

BONUS ACTIVITIES

This section provides you with support of your course above and beyond what is found in the

text. We have developed these resources to support your course, to support your traditional,

hybrid, online, or flipped class.

VIDEO SUGGESTIONS

McGraw Hill’s collection of international business videos is available at

TEAM EXERCISES

These may be done individually or in groups or teams, either in or out of class, for later class

presentation. Some are also appropriate for use in hybrid/flipped classroom and online courses.

1. Interviews

We have had good response from asking the students to interview people involved in exporting

2. Export Examples

Ask the students to choose a product and a country to which they wish to export it. Assume an

FOB factory selling price and prepare a quotation using one of the terms of sale in the text.

Specify export payment terms. What other documents will be required?

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

Bonus B-19

3. Career Opportunities

Have students identify and discuss, first in small groups and then in large groups, what career

opportunities there might be in the area of exporting. Encourage the students to consider

SUPPLEMENTAL ACTIVITIES

Case Studies

Case studies that focus on intercultural issues and their effects in business environments are

available through Ivey Publishing and Harvard Business School. Ivey’s catalog is available for

“Ferro Industries – Exporting Challenge in a Small Firm,” examines the exporting challenge

facing a small firm within the Indian steel industry. Issues addressed include the stage at which

Harvard Cases

“Malincho” describes the challenges faced by a recent U.S. immigrant from Bulgaria who sets

up an importing business to bring bulk feta cheese from Bulgaria to the U.S.A. Lacking prior

experience in importing and exporting, he confronts issues such as identifying opportunities,

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

Bonus B-20

CONTROVERSIAL ISSUES

1. Global Debate: The Ethics of Exporting: Do Home Values Apply?

This boxed element described earlier in this module’s Instructor Guide provides an excellent

foundation for debating some of the issues raised in the text, including issues about the

2. Current Events for Sources of Content on Importing and Exporting

A focus on current events that are relevant to the module’s topics is a good way to bring home

the concepts, review their application, and build news-review habits. Ask everyone to come

prepared with an article for every meeting. If a meaningful percentage of the final grade is

TEACHING SUGGESTIONS

1. This module covers the process of exporting in a hand-on way, describing the processes.

Unlike other topics in this text, this area is all implementation. It is an important area for

2. The issue of exporting opportunities sometimes is difficult for students to understand,

particularly regarding the sheer magnitude of exporting and importing activities and how it has

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

might encounter in trying to export products successfully. Exploring how culture and other

institutional forces might impact the likelihood of exporting success can also be insightful for

students.

3. Guest Lecturer possibilities: Some people who could contribute to the material in this

module would be:

• If you have a foreign freight forwarder in your area, invite him or her to explain the

firm’s services to exporters. A good forwarder can help a newcomer to get started

and is one person who is knowledgeable about the entire exporting process.

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

CONNECT TOOLS FOR ASSESSEMENT OF LEARNING

CONNECT CONTENT MATRIX

For every chapter, please refer to the Connect Content Matrix to see what application exercises

are available and what Learning Objectives they help reinforce/assess.

Title

Assignment

Type

Topic(s)

Learning

Objective(s)

AACSB

Accreditation

Tagging

Bloom’s

Taxonomy

Improving

Exporting

Strategies and

Operations

Case Analysis

Information Sources

and Government

Assistance to Exporting

B-01

Analytical

Thinking

Understand

Carol’s Incoterms

Morning

Comprehension

Case

Incoterms

B-02

Analytical

Thinking

Analyze

Financing Exports

and Imports

Click and Drag

Export and Import

Financing

B-03; B-04

Analytical

Thinking

Understand

Business and

Government

Responses to

Exporting Issues

Click and Drag

Information Sources

and Government

Assistance to Exporting

B-01; B-03;

B-04

Analytical

Thinking

Understand

CONNECT ACTIVITIES

1. Improving Exporting Strategies and Operations

2. Carol’s Incoterms Morning

Activity Summary: In this case, Carol Beal is an export manager for a clothing company. She

3. Financing Exports and Imports

Activity Summary: This is a click and drag activity in which students must place boxes of the

steps of a letter of credit into the correct order.

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module B

How to Use Activity: This can be given as an online assignment or as an in-class assignments for

4. Business and Government Responses to Exporting Issues

Activity Summary: In this click and drag activity, students are presented with a grid that has