Overview
Instructions
Your manager’s memo to you is below. In it, your manager gives you several tasks to perform. You are expected to use available resources to develop a thorough and accurate response. Your report should start with a standard business heading and format. It should be written in complete sentences. The Example GM-Challenge Business Report (attached) in Module 1 shows a business report with its parts.
Structure your business report as follows:
Heading - Use a standard business heading
Purpose Statement - State the report's overall purpose in your own words in an initial paragraph. This statement tells your manager why s/he is receiving a report from you and what info was requested of you.
Task Responses - Next, respond to each of the assigned tasks in sequence, numbering your responses accordingly. For each task:
* Restate the Overall Task: Begin by restating the overall task in your own words (what the task is) to verify your understanding of it to your manager.
* Respond to Each Part of the Task: Complete responses include (A/B/C) as indicated.
(A.) Written responses that summarize relevant source info and justify your thinking,
(B.) Legible supporting images that show the relevant source info used, and
(C.) Weblinks directly to the relevant source info so your manager can easily retrieve it.
* Note: The letters (A/B/C) will be used in your manager’s memo as a reminder to include them.
Legible supporting images are a key part of your response. These images do not replace your written answers, they only show the relevant source info used. The supporting images should be visible in your report, not included as files. Screenshot or screen clip them into your response. Details on how to insert a supporting image into your GM-Challenge using the screenshot or screen clipping tools can be found HERE. Supporting images should be legible so stretch them to make them fit the width of the page. Then images should then be large enough to read.
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To: Kiya Cummings – Musgrave Pencil Company’s Assistant Global Marketing Manager From: Earl E. Byrd - Musgrave Pencil Company’s Global Marketing Manager Date: Sept 21, 2025 Subject: Payment/Financing Considerations
Musgrave Pencil Company is trying to evaluate payment and financing options for a pending international sale to a company in Brunei. Below are some issues that have been raised. The information you provide will help Musgrave Pencil Company consider which options might be appropriate.
Janet was handling this effort but had to travel abroad again so you have been tasked with helping locate and provide this information. She did leave some of her initial notes and sources which I have included in this memo. If weblinks are not functioning correctly, seek another resource.
1. The commercial invoice Musgrave Pencil Company is preparing for a customer in Brunei has a price quote of 30,000 USD (CIF) in about 180 days on Jan 2, 2026. The exchange rate between the US dollar (USD) and Brunei 's currency will likely fluctuate over this time period. Musgrave Pencil Company is trying to assess how much currency risk there would be with this sale.
What is the currency of Brunei? What abbreviation is used for that currency? What is the current exchange rate between the US dollar (USD) and Brunei's currency? How has the exchange rate between the US dollar (USD) and Brunei’s currency changed over the past year?
a. Use the XE website Xe: Currency Exchange Rates and International Money Transfers. to determine Brunei’s currency and that currency's abbreviation. (A/B/C)
b. That same website will have the current exchange rate for one USD and Brunei’s currency (BND). (A/B/C)
c. Provide an image showing how the exchange rate between these two currencies has changed over the past year. The Charts Tool on the XE website Xe: Currency Exchange Rates and International Money Transfers can display exchange rate changes across various increments of time. (A/B/C)
d. Discuss how the exchange rate has changed over the past year.
2. To help make the currency risk more understandable, provide an example using the two scenarios below.
If an export sale valued at 100,000 USD had been completed 180 days ago, with payment received at that time, Musgrave Pencil Company would have received 100,000 USDs worth of Brunei's currency at that time. If the same export sale had occurred and the customer had been given 180 days to pay in Brunei's currency, how many more (or less) USDs would Musgrave Pencil Company have received?
a. Calculate the foreign exchange rates on the dates below. (A/B/C)
Indicate the exchange rate between the USD and Brunei's currency 180 days ago. USD __1___ = __________ USD _100,000_ = __________
Indicate the exchange rate between the USD and Brunei's currency today. USD __1___ = __________ USD _100,000_ = __________
b. State how many more (or less) USDs would Musgrave Pencil Company have received?
3. Musgrave Pencil Company is always concerned about its customer's ability to pay. For a domestic customer, Musgrave Pencil Company can get a credit report. For customers in Brunei, it may not be as easy. The US Commercial Service assists US companies with this issue. They offer a service called the International Company Profile that can provide a comprehensive background report on a specific foreign company to help a US company assess a foreign buyer's creditworthiness.
What information does the International Company Profile include? How much does it cost? How/where does Musgrave Pencil Company initiate the process?
a. Overview the information in an International Company Profile. (A/B/C)
b. Discuss the cost. (A/B/C)
c. Discuss how/where to initiate the process. (A/B/C)
4. Credit reports to assess a foreign buyer's creditworthiness may also be available from private companies like Coface for Trade, Graydon America, or FCIB.
Do any of these companies have an office in Brunei? How much does a credit report cost? How long does it take to get one of these reports? How/where does Musgrave Pencil Company get the process started?
a. Coface for Trade, GraydonCreditsafe, and FCIB are some of the firms offering US companies credit reports on foreign buyers. Determine whether these companies have an office in YOUR COUNTRY at these websites Get in Touch with Coface | Risk Management Inquiry | Coface., Our Locations., and FCIB_Brochure.pdf. (A/B/C)
b. Provide the physical address for one of these companies in or close to Brunei. (A/B/C)
c. Provide details regarding the cost and time needed to obtain a credit report from that company. (A/B/C)
d. Identify the USCS office Musgrave Pencil Company would use. (A/B/C) Discuss how to get the process started. (A/B/C)
5. The Export-Import (EXIM) Bank is an federal agency that provides export credit to foreign buyers of US exports to promote and support American jobs. This agency has twelve local offices across three US regions. One of these local offices may be able to provide Musgrave Pencil Company with some assistance. Musgrave Pencil Company wants some info with regard to any government export financing programs that may be available. The Export-Import (EXIM) Bank for the United States has Bank Loan & Guarantee Programs, Export Credit Insurance, and a Working Capital Guarantee Program available for US exporters.
Where is the local office of the EXIM Bank that serves Tennessee located and how does Musgrave Pencil Company contact it? Who is a field staff member associated with this local office and how does Musgrave Pencil Company contact them? Are the programs mentioned above available for sales to Brunei?
a. Identify the local office of the EXIM Bank that serves companies in Tennessee Finance Centers | EXIM.GOV. Provide the physical address of this local office. (A/B/C)
b. Identify a specific field staff member associated with this local office. (A/B/C)
c. Provide any contact info available for this individual (i.e., contact number, email address, LinkedIn account, etc.). (A/B/C)
d. Determine whether EXIM Bank programs are available to US companies exporting to Brunei, for what types of buyers, and for what time periods. Check the EXIM Bank’s Country Limitation Schedule Country Limitation Schedule | EXIM.GOV. (A/B/C)
6. The United States Small Business Administration (SBA) is an agency of the US government that provides support to entrepreneurs and small businesses. It has an export loan program to encourage international sales by US companies.
What is an SBA-approved lender in or close to Tennessee that participates in the SBA’s export loan programs? How does Musgrave Pencil Company contact them?
a. Identify an SBA-approved lender in or close to Tennessee. Info on the SBA's participating export lenders is available in the excel file Participating Export Lenders | U.S. Small Business Administration. (A/B/C)
b. Provide an image of this export lender's homepage. (A/B/C)
c. Provide the physical address of this export lender. (A/B/C)
d. Provide contact info for this export lender (i.e., contact number, email address, etc.). (A/B/C)
7. There are various methods of payment that can be used for an international sale. Some of these options may not be commonly used for imports, may be restricted by Brunei’s government, or may not be advisable for Brunei. Musgrave Pencil Company wants to be aware of any payment method considerations.
Are some methods of payment more commonly used for imports by companies in Brunei? Does the government of Brunei prohibit or have extra requirements for certain methods of payment? Are certain methods of payment specifically inadvisable?
a. Identify whether there are any methods of payment for imports that are commonly used by companies in Brunei. Access the US Country Commercial Guide for Brunei Country Commercial Guides and look under the "Trade Financing" tab for "Methods of Payment". (A/B/C)
b. Identify whether there are any government prohibitions or stipulations on methods of payment for imports. (A/B/C)
c. Identify whether there are any methods of payment that the US Commercial Service for Brunei recommends US companies specifically use or specifically avoid. (A/B/C)
8. Some financial institutions in the US specialize in global trade finance like export letters of credit. Because an export letter of credit can reduce the credit risk associated with non-payment by a buyer, this payment method is of specific interest to Musgrave Pencil Company. A SWIFT code is a standardized code used to identify a specific bank/financial institution. When a company needs to transfer money between financial institutions internationally, a key piece of information is the SWIFT code.
What is a financial institution in or close to Tennessee that handles export letters of credit? What is the SWIFT code for this financial institution?
a. Identify a financial institution in or close to Tennessee that handles export letters of credit. A useful resource to identify such institutions may be regional trade finance award winners World’s Best Trade Finance Providers 2024 | Global Finance Magazine.. (A/B/C)
b. Provide an image of this financial institution's homepage. (A/B/C)
c. Provide the physical address of this financial institution. (A/B/C)
d. Provide contact info for this export lender (i.e., contact number, email address, etc.). (A/B/C)
e. For the financial institution you identified, determine its SWIFT code using the search tool BIC / SWIFT code for any bank | SWIFT code finder. (A/B/C)
9. Some financial institutions in Brunei specialize in global trade finance like export letters of credit.
What is a financial institution in Brunei that specializes in global trade finance like export letters of credit? What is the SWIFT code for this financial institution?
a. Identify a financial institution in Brunei that handles export letters of credit. A useful resource to identify such institutions may be regional trade finance award winners World’s Best Trade Finance Providers 2024 | Global Finance Magazine.. (A/B/C)
b. Provide an image of this financial institution's homepage. (A/B/C)
c. Provide the physical address of this financial institution. (A/B/C)
d. Provide contact info for this financial institution (i.e., contact number, email address, etc.). (A/B/C)
e. For the financial institution you identified, determine its SWIFT code using the search tool BIC / SWIFT code for any bank | SWIFT code finder. (A/B/C) Note: If you are unable to determine its SWIFT code, select a different financial institution.
10. Forfaiting is a means of financing that enables exporters to receive immediate cash by selling their receivables - the amount an importer owes the exporter - at a reduced price to a specialized finance company or bank. The company/bank (the forfaiter) will then assume any credit risk associated with non-payment by a buyer. Musgrave Pencil Company may choose to use forfaiting to handle export financing.
What is one company/bank based in the US (preferably in or near Tennessee) that provides forfaiting services? Where is the organization located and how do we contact it?
a. The International Trade and Forfaiting Association (ITFA) is a useful source for locating finance companies or banks that engage in forfaiting. It is the worldwide trade association with over 300 financial institutions. Identify a US-based member at the organization’s website » Membership Directory. (A/B/C)
b. Provide an image of this financial institution's homepage. (A/B/C)
c. Provide the physical address of this financial institution. (A/B/C)
d. Provide contact info for this financial institution (i.e., contact number, email address, etc.). (A/B/C)