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Please read Management Focus: FCX Systems in Chapter 13 in your textbook (page 446 in the 7th edition and page 394 in the 8th edition) and answer the following questions:

FCX Systems, which manufactures power converters for the aerospace industry, realized that to continue to grow, the company would have to seek opportunities in foreign markets. Today, the company is the recipient of numerous accolades for its exporting success, and has recently, after numerous years of trying, begun to find success in China, a market it believes will be important in the future.

1. FCX Systems' entry into foreign markets was not an easy one. Reflect on the challenges facing small companies like FCX Systems as they pursue foreign opportunities.  Why did FCX believe that foreign markets could be more profitable than its domestic market?

2. Why did FCX initially sign on with an in international distribution company? What made FCX decide to go it alone?  How important was government assistance to FCX's success?

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