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Case Study - Megahertz Communication
Case Study - Megahertz Communication
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QUESTIONS
QUESTION 1: What was the motivation for Megahertz’s shift toward a strategy of export-
led growth? Why do you think the opportunities for growth might be greater in foreign
markets? Do you think that developing countries are likely to be a major market opportunity
for Megahertz? Why?
QUESTION 2: Does Megahertz’s strategy for building exports make sense given the nature
of the broadcast industry? Why?
QUESTION 3: Why do you think Megahertz found it difficult to raise the working capital
required to finance its international trade activities? What does the experience of Megahertz
tell you about the problems facing small firms who wish to export?
QUESTION 4: Megahertz solved its financing problem by selling the company to AZCAR
of Canada. What other solutions might the company have adopted?
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