A firm based in California wants to export a shipload of finished lumber to the Philippines. The would-be importer cannot get enough credit from domestic sources to pay for the shipment but insists that the finished lumber can quickly be resold in the Philippines for a profit. Outline the steps the exporter should take to successfully export this product to the Philippines and make a profit? How might a company make strategic use of countertrade schemes as a marketing weapon to generate export revenues? What are the risks associated with pursuing such a strategy?
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