Assessing a company's suitability for exporting is a difficult process. The first step is to evaluate the company's philosophy, or world outlook. 1 One survey on u.s. businesses' attitudes toward exporting concluded that u.s. managers are "reluctant exporters." 2 Most U.S. managers view exporting as a "hard way of making a living." Unfamiliarity with foreign markets, customs, and procedures; fear of loss of revenues due to lack of funds on the part of the importing company; and longer break-even and pay-back periods are given by u.s. managers as some of the most important reasons for their reluctance to export.
The empirical evidence shows, however, that u.s. MNCs do export and import large quantities of goods and services. Much of this trade is done in the form of intercompany transfers. The process of exporting is the same, however, whether the importer is a subsidiary of an MNC or an independent company.
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