Megahertz Communications

Megahertz Communications was having a hard time being paid on time because lots of the countries that they were under-developed. Many of their customers were inconsistent with the payments and were unreliable.

One alternative would be to turn to the banks for loans in order to increase the working capital. However, this did not work because the banks were under different fluctuating currencies that proved to be too much of a risk for the bank to accept.

Another alternative would be to go to lending companies that specialize into financing international trade but the lending companies tended to charge a huge interest rate for the loans.

One of the better solutions would have been to hire an export management company. Since Megahertz was a small business export, they could have used the expertise from a professional export management company. These companies assist with the export operations of another company with the understanding that the firm will take over these operations after they become entrenched in the work process. This will allow Megahertz to identify and rectify mistakes that are costly to the process of the exportation.

A solution could also be to simply countertrade. Since it is hard for Megahertz to secure payment and the fluctuations of the different currencies are high it may be easier to receive other services and goods instead of payment. Receiving goods and services instead of payment skips over any conversion problems it may have. Megahertz is mostly based on building the infrastructure of broadcasting system they can benefit from partnerships from other companies that can offer goods pertaining to the in-house operation of building materials used such as wood for the custom desks or steel alloy for the satellite trucks. However, since Megahertz is limited in what it needs they may not be able to set up an effective countertrade with companies with mutual needs so it may not be viable.

If this company