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Softwood logs comprise a large portion of forest product exports from the United States. Most of these exports have occurred between the Pacific Northwest region of the United States and several Asian countries. In this study, the extent and degree of market integration of softwood log exports from 1996 to 2018 are examined by co-integration analyses and permanent–transitory decomposition. Softwood log exports to Japan and South Korea appear to be in the same economic market and show a high degree of integration, while trade between the United States and China has evolved more independently. A detailed analysis is conducted on five prices related to Japan and South Korea with full-time coverage, and one common integrating factor is found and estimated. The price of export from the Columbia-Snake Customs District to Japan is identified as the driving force. Price responses to market shocks usually occur within four months. These findings have implications for government agencies and participants in the market of softwood log trade.

Sustainability and globally competitive forest product supply markets are two of the pressures that forest managers face today. Both require that managers have good metrics of the quantity, quality, and location of timber resources within their forests. The value of this information must be weighed against the cost of obtaining it and losses associated with not having access to it. A cost-plus-loss procedure for assessing the relative contributions to error in estimating stand-level value recovery and log product yields was developed and tested on two Douglas-fir ( Pseudotsuga menziesii (Mirb.) Franco) stands in Oregon. The sources of error were those associated with (i) market complexity, (ii) sampling intensity, (iii) stem quality assessment methods, and (iv) bucking optimization algorithms. Two performance measures were used as part of the assessment procedure: market fulfilment and the difference in total net value recovery between having complete and less than complete information. Average market fulfilment ranged between 60% and 100%. The difference in total net value recovery ranged from –21.2% to +0.8%. Stem quality assessment followed by bucking optimization algorithms and sampling intensity had the greatest effects on these performance measures. Market complexity had a negligible effect on these performance measures but affected net value recovery.

The relative value of currencies varies considerably over time. These fluctuations bring uncertainty to international traders. As a result, the volatility in exchange rate movements may influence the volume and the price of traded commodities. The volatility of exchange rates was measured by the variance of residuals in a GARCH(1,1) model of the exchange rate. We estimated the effect of this exchange rate volatility on export quantity and price with autoregressive distributed lag models based on monthly data of US exports and prices to 14 countries for eight commodity groups. The most general and statistically significant results were obtained by pooling the time series data across destination countries and products. They suggested that an increase in exchange rate variability of 1% led to a short-run decrease in export quantity of 0.3%–0.4% and to a short-run decrease in export price of 0.1%. Both the quantity and the price effect faded away over time. The effects were less systematic and statistically significant for specific export destinations or individual products. Thus, in contrast with exchange rate level, exchange rate volatility may not be a major policy issue for US forest product exports.

This paper describes the development and implementation of Cambium, an agent-based forest sector model for strategic analysis. This model is designed as a decision-support tool for assessing the effects that changes in product demand and resource inventories can have on the structure and economic viability of the forest sector. Cambium models aggregate product supply as an emergent property of individual companies’ production decisions and stand-level ecological processes. Modeling the forest-products sector as a group of interacting autonomous economic agents makes it possible to include production capacity dynamics and the potential for mill insolvencies as factors in analyzing the effects of market and forest inventory based disturbances. The utility of this model is tested by assessing the impacts of a market downturn in the US forest products market on forest industry structure and mountain pine beetle ( Dendroctonus ponderosae Hopkins) salvage harvesting in British Columbia, Canada. Simulation results indicate a significant medium-term timber supply shortage; reduced stumpage revenues; intensive cost competition among primary wood-products manufacturers; and a large number of insolvencies in the panel, lumber, and pulp sectors.

Genetic control and relationships among coastal Douglas-fir ( Pseudotsuga menziesii (Mirb.) Franco var. menziesii) growth and wood quality traits were assessed by estimating heritability and phenotypic and genetic correlations using 600 trees representing 15 full-sib families sampled from four progeny test sites. Heritability estimates ranged from 0.23 to 0.30 for growth traits, 0.19 for fibre coarseness, from 0.21 to 0.54 for wood density, from 0.16 to 0.97 for cell wall carbohydrates, and 0.79 and 0.91 for lignin content at two sites, Squamish River and Gold River, respectively. Glucose content, indicative of cell wall cellulose composition, and lignin were shown to be under strong genetic control, whereas fibre coarseness was shown to be under weak genetic control. Phenotypic correlations revealed that larger trees generally have longer fibres with higher fibre coarseness, lower density, lower carbohydrate content, a greater proportion of cell wall lignin, and higher microfibril angle. Genetic correlations and correlated response to selection suggest that breeding for height growth would result in a reduction in wood quality, whereas breeding for improved earlywood density in Douglas-fir would result in negligible reductions in volume and appears to be an ideal target for selecting for improved wood quality (density) while maintaining growth in the sample population.

Wood anatomical features measured in tree-rings are useful indicators of environmental change and wood quality. The effect of latitude on the wood anatomy of mature black spruce ( Picea mariana (Mill.) BSP) was investigated along a 500 km transect from 47°N to 52°N across the continuous boreal forest in Quebec, Canada. Total tree-ring width, earlywood width, latewood width, latewood proportion, cell numbers, tracheid length, radial diameter, lumen diameter, and cell wall thickness were measured using image analysis on samples from 15 mature stands. Our results suggest that tree-ring, earlywood, and latewood widths, cell numbers, latewood radial cell diameter, and cell wall thickness decrease with latitude. No significant trend was observed for latewood proportion, despite a slight increase with latitude (p = 0.0856). However, the high variability in radial growth seen along the gradient might explain the absence of a significant relationship. Latitude and the associated growth rate reduction had no effect on tracheid length. The existence of a latitudinal pattern of variation in black spruce wood anatomy may be the result of tree adaptation to differing environmental conditions along the gradient.

In many countries, restrictions on the use of traditional preservative treatments have resulted in efforts to develop wood products for outdoor use that are durable, environmentally friendly, and appealing to consumers. In the present study, consumers’ preferences for wooden deck materials were investigated using sensory analysis. The analysis included an analytical sensory profiling of five deck materials, conducted by a trained sensory panel, as well as a hedonic preference study conducted on Norwegian customers. Eighteen visual and tactile attributes were identified, and statistical analysis indicated that these attributes were sufficient to discriminate between the different deck materials. The results imply that consumers prefer deck materials with a homogeneous visual appearance and moderate color intensity. The study demonstrated a successful application of sensory research on wood products and implies that sensory analysis is an appropriate tool to study relationships between hedonic judgments and product characteristics. The study was carried out on wooden deck materials, but the results are probably also relevant for other wood products.

This study contributes to the Pinus pinaster Ait. breeding programme, which is reaching the third generation by adding information on wood quality of 46 open-pollinated families from a progeny trial located in Leiria, Portugal, that originated from seed collected in a clonal seed orchard. A total of 552 seventeen-year-old trees were sampled at 2 m height. Trends were studied from the pith outward in variance components and narrow-sense heritability (h2) of wood density components and ring-width characteristics as well as genetic correlations between cambial ages. Mean ring density (RD), minimum density (MND), maximum density (MXD), earlywood density (EWD), latewood density (LWD), earlywood width, latewood width, ring width, latewood percentage, and heterogeneity index were determined using X-ray densitometry procedures. RD had higher genetic control (h2 = 0.63), and heritability values of earlywood components (h2MND = 0.54, h2EWD = 0.60) exceeded those of latewood components (h2MXD = 0.34, h2LWD = 0.26). Heritabilities increased with ring number from pith for almost all wood density components, and there were high age–age genetic correlations for wood density traits (rg > 0.98).

The decay resistance of black locust ( Robinia pseudoacacia L.) heartwood was evaluated on standardized test specimens taken from mature and juvenile wood in 25 trees distributed over five sites in Wallonia, Belgium. The percentage mass losses caused by the wood-destroying fungi Coriolus versicolor CTB 863 A and Coniophora puteana BAM Ebw.15 were evaluated according to Cen/ts 15083-1 (Cen/ts 15083-1. 2005. Durability of wood and wood-based products — determination of the natural durability of solid wood against wood-destroying fungi, test methods — Part 1: Basidiomycetes. European Comm. for Standardization, Brussels). Black locust is classified as a “very durable” wood (class 1), while the juvenile heartwood (located near the pith) is classified in classes 1 to 2. The statistical analysis does not reveal any significant differences among the sites, suggesting that the growth environment of the trees has no effect on their natural durability. However, statistical analysis shows very highly significant differences among trees and between the two radial positions in the tree, with mature wood being more resistant than juvenile wood. Using such a naturally very durable species could reduce reliance on preservative treatment and the use of tropical species generally recommended for outdoor woodwork.

Studies on red alder (Alnus rubra Bong.) and sycamore (Acer pseudoplatanus L.) were carried out to assess their timber and wood-fuel properties when grown at wide spacing as in a silvopastoral system. Initial tree-planting density had significant effects on the modulus of elasticity (MOE) in red alder and compression strength in sycamore. Wood samples taken from red alder in high-density plots of 2500 stems·ha–1 had a significantly higher MOE than those from trees in low-density plots of 400 stems·ha–1 (silvopastoral system). Sycamore wood from the high-density plots had significantly higher compression strength than that from the low-density plots. However, there was no significant effect of planting density on the modulus of rupture in either species. On average, red alder had lower wood density, modulus of rupture, and compression strength than sycamore, but there was no significant difference in MOE between the two species. Planting density did not have any effect on the wood-fuel higher heating value of either red alder or sycamore, nor was there a significant difference in wood-fuel higher heating value between the two species. However, red alder wood had a significantly higher fuel-value index than sycamore, owing to its lower ash content.

A naturally regenerated jack pine (Pinus banksiana Lamb.) trial established in 1966 in New Brunswick was studied to determine how three precommercial thinning intensities (1.22 m × 1.22 m, 1.52 m × 1.52 m, and 2.13 m × 2.13 m) and a control (154 trees in total) affected tree growth and lumber quality. Mild (thinned to 1.22 m) and moderate (1.52 m) thinning had a modest impact on tree growth after 34 years (stand age 59). However, intensive thinning (2.13 m, or 2212 stems/ha) increased tree height by 13.1% compared with the control, whereas tree diameter and merchantable stem volume per tree increased by >20% and >75%, respectively. Yields of No. 2 and Better increased slightly with increasing thinning intensity, but lumber bending properties decreased with increasing thinning intensity. There was, respectively, >20% and >15% difference in lumber strength (modulus of rupture) and stiffness (modulus of elasticity) between the mild (1.22 m) and intensive (2.13 m) thinnings. Intensive precommercial thinning (2.13 m) is recommended for increased volume growth, but rotation age (>59 years) should not be reduced if lumber bending properties are of concern.

Increasing forest parcelization has raised concerns about tract-size economies and sustainable timber supply. We explored this issue by examining the logging sector and forest ownership in northern Wisconsin and Michigan's Upper Peninsula. Using 2004 survey data, we found that 48% of logging firms demonstrated a near exclusive reliance on nonindustrial private forests (NIPFs). NIPF-dependent firms derived 87.5% of their stumpage from this ownership, whereas nondependent firms exhibited a significantly more diversified stumpage supply dis- tributed among public (42.6%), industrial-corporate (33.3%), and NIPF (24.0%) sources. Additionally, NIPF- dependent firms operated on significantly fewer, smaller, and less intensely harvested timber sales, and they were more likely to harvest small tracts profitably. There were no significant differences in the forest products harvested or overall firm profitability. We found statistical evidence that NIPF-dependent and nondependent firms organize them- selves differently: NIPF dependency was negatively correlated with total number of employees, timberland area in the firm's wood basket, and firm location and positively correlated with owner age. Results suggest the impacts of parcelization on the logging sector are minimal. NIPF-dependent firms appear to have structured themselves to oper- ate profitably; however, it is unclear how continued parcelization might influence these firms and the sector as a whole. Resume : L'augmentation du morcellement des forets a souleve des preoccupations concernant les economies reliees a la dimension des parterres de coupe et l'approvisionnement durable en matiere ligneuse. Les auteurs explorent cet enjeu en examinant le secteur de l'exploitation et les tenures forestieres au nord du Wisconsin et dans la Peninsule du Haut Michigan. En utilisant des donnees d'inventaire de 2004, ils ont trouve que 48 % des entreprises d'exploitation dependaient presque exclusivement des lots boises non industriels (LBNI). Ces entreprises obtiennent 87,5 % de leur bois sur pied de ce type de proprietes alors que les entreprises qui n'en dependent pas ont des sources d'approvisionnement significativement plus diversifiees comprenant des terres publiques (42,6 %), des terrains industriels ou corporatifs (33,3 %) et des LBNI (24,0 %). De plus, les entre- prises qui dependent des LBNI realisaient significativement moins d'operations, sur de plus petits territoires et de maniere moins intensive. Elles avaient aussi plus de chances de recolter de maniere rentable de petits parter- res de coupe. Les produits recoltes et la rentabilite globale des entreprises ne presentent aucune difference si- gnificative. Des indices de nature statistique montrent que les firmes dependantes et non dependantes des LBNI s'organisent differemment : la dependance aux LBNI est correlee negativement avec le nombre total d'employes, les aires de coupe accessibles a l'entreprise, la localisation de la firme et positivement avec l'âge du proprietaire. Les resultats indiquent que l'impact du morcellement sur le secteur de l'exploitation est minimal. Les firmes dependantes des LBNI semblent s'etre structurees pour operer de maniere rentable. Cependant, on ne sait pas quelle influence le morcellement accru des territoires forestiers aura sur ces entreprises et le secteur dans son ensemble. (Traduit par la Redaction) Rickenbach and Steele 194

The impacts of forest certification costs on the output, price, and trade of forest products were assessed via computable general equilibrium modeling under various scenarios representing tropical, temperate, and global forest certification. Despite causing more severe and extensive impacts, global certification seems more acceptable than regional certification to major timber-producing countries. The regions that would suffer the most from global certification would not be major timber-producing regions, but major net importers of forest products like East Asia. With 5%–25% increases in forestry production costs resulting from certification, the world's forestry output would decline by 0.3%–5.1%, while the world price would rise by 1.6%–34.6%; impacts on global lumber and pulp and paper markets would be much more moderate. In general, forest certification would have larger impacts on trade and price than on output. While causing trade diversion and substitutions between tropical and temperate forest products and affecting regional forest product markets, forest certification would not substantially induce substitutions between wood and nonwood products at the global aggregate level. Because of the possible leakages (deforestation elsewhere) associated with regional certification and the land-use shifts resulting from sectoral production shifts at the regional level, forest certification may not necessarily curb tropical deforestation.

Data from two separate experiments were used to estimate genetic parameters for different wood properties of Pinus radiata D. Don in New Zealand. In experiment 1, 72 and 60 open-pollinated families were sampled at two sites, Kinleith and Paengaroa, respectively. Fifty-nine such families were common to both sites. In experiment 2, 62 and 29 pollen-parent families were sampled from a female-tester trial at two sites, Kaingaroa and Warrengong (the latter in Australia), respectively. Twenty-nine such families were common to both sites. Clearwood stiffness (MOE) and strength (MOR), wood density (DEN), acoustic stiffness on standing trees (IMLH), acoustic stiffness in 5-m logs (HITMAN), external resin bleeding (ERB), internal checking from discs taken at 1.3-m and 3.0-m height (CHEK_B and CHEK_U), and diameter at breast height (DBH) were assessed. Within-site narrow-sense heritability (h2) estimates of various wood properties were consistent, particularly within New Zealand. Across-sites estimates of h2 of HITMAN, CHEK_B, and DEN were, respectively, 0.24, 0.40, and 0.62 in experiment 1 and 0.21, 0.16, and 0.38 in experiment 2. Estimated type B genetic correlations were generally high for all traits except DBH. DEN showed strong positive genetic correlation with all direct and acoustic measures of stiffness (MOE, HITMAN, and IMLH). DEN and all measures of stiffness showed low to moderate negative genetic correlations with DBH.

The life's work of Professor Gene Namkoong helped to lay the theoretical and quantitative foundations for modern forest genetics and tree breeding. It also emphasized the practical and ethical issues of the conservation of forest gene resources. As we enter a new millennium the challenges facing forest geneticists and tree breeders include recognition of changing demands on forests for a range of forest products of different quantities and qualities; development and wise application of the new molecular technologies for genetic manipulation and practical breeding; presentation of the values of genetics to policy-makers and to the concerned public; capture of resources for research and development as forestry moves from the public sector to private institutions; and preparation for a future that is uncertain politically, economically, socially, and environmentally.

A carbon budget model of the Canadian forest sector (CBM-CFS2), was modified to investigate past and possible future impacts of management on C sequestration in forest biomass, soils, and harvested wood products, for a forest management unit in the western Canadian BorealnCordilleran ecoregions. The model showed that total suppression of natural disturbances, and their replacement by harvesting for maximum sustainable yield, could lead to significant increases in ecosystem C storage (mainly in soils and wood products) over a period of 100n200 years in this region. This is primarily because the historical interval between disturbance events (primarily wildfire) is short compared with the harvest interval. The net gains in C storage, and the period over which they are sustainable, are sensitive to several key variables, including planned harvesting levels and the intensity of natural disturbances. A warmer climate could reduce total C storage as a result of greater soil decomposition, but it should not reverse the benefits attributable to management if disturbances are controlled. Extended rotation lengths increase total C storage significantly and may justify additional investment in protection. Resume : Un modle de bilan du carbone du secteur forestier canadien (CBM-CFS2) a OtO modifiO afin diexaminer les impacts possibles, passOs et futurs, des pratiques diamOnagement sur la sOquestration de C dans la biomasse forestire, les sols et les produits forestiers rOcoltOs dans une unitO diamOnagement forestier des OcorOgions borOalencordillOrenne de liOuest du Canada. Le modle a montrO que la suppression totale des perturbations naturelles et leur remplacement par une rOcolte pour un rendement soutenu maximum pourrait conduire ‡ des accroissements significatifs du stockage de C dans liOcosystme (principalement dans les sols et les produits forestiers) sur une pOriode de 100n200 ans dans cette rOgion. Ceci est prOliminaire en raison de liintervalle historique court entre les OvOnements perturbateurs (surtout les feux naturels) lorsque comparO ‡ liintervalle de rOcolte. Les gains nets dans le stockage de C et la pOriode sur laquelle ils sont soutenus, sont sensibles ‡ plusieurs variables clOs, incluant les niveaux prOvus de rOcolte et liintensitO des perturbations naturelles. Un climat plus chaud pourrait rOduire le stockage de C ds ‡ une dOcomposition plus rapide dans le sol mais cela ne devrait pas renverser les bOnOfices attribuables ‡ liamOnagement si les perturbations sont contrUlOes. AccroOtre la longueur des rotations augmente significativement le stockage total de C et peut justifier un investissement additionnel pour la protection. (Traduit par la ROdaction)

Un modele sectoriel du secteur des produits forestiers (SPF) comprenant les industries du bois, du meuble et des pâtes et papiers a ete developpe et estime a l'aide de donnees couvrant 31 ans (1961 a 1991). Le modele compte sept equations decrivant son comportement ((i) la production totale, (ii) la consommation domestique, (iii) les exportations, (iv) les importations et les prix (v) de la consommation, (vi) des exportations et (vii) des importations) de meme qu'une identite pour chaque industrie. Quatre identites additionnelles completent la structure de l'ensemble du modele SPF. La performance du modele est evaluee par la simulation d'une periode d'echantillonnage. Une prevision a ete effectuee pour les 5 prochains ans, et une analyse d'impact a ete realisee quant aux changements dans le domaine de l'habitation. La prevision montre une croissance annuelle plus lente dans le secteur SPF comparativement a l'ensemble de l'economie. [Traduit par la Redaction]

The North American Free Trade Agreement (NAFTA) will lower barriers to trade and investment across the continent. This paper presents predictions of the effects of NAFTA on Mexico's imports of intermediate wood products, scrap and waste paper, pulp, and newsprint from the United States and Canada. Predictions were made with a partial equilibrium model. Model development involved estimating (i) elasticities of Mexico's import demand with respect to price and demand shifters and (ii) elasticities of prices with respect to their determinants, and then predicting, with these elasticities, the impacts of NAFTA on imports and prices. The effects of NAFTA on the exogenous variables affecting import demand and prices were summarized for three scenarios, based on the predictions of broader studies of the agreement. The results suggest that the full long-term impact of the NAFTA would be to increase the value of all Mexican imports from the United States and Canada by 21 to 85%. The effect would vary greatly by product and country of origin. Mexican imports of particleboard, hardwood veneer, scrap and waste paper, and wood pulp would be the least affected, mainly because of their smaller tariffs and inelastic price responses. Imports of Douglas-fir (Pseudotsugamenziesii (Mirb.) Franco) lumber, hardwood lumber, softwood plywood, and newsprint from the United States would increase the most under NAFTA.

Partial and total measures of factor productivity are presented for the pulp and paper industries of the United States and Canada, from 1959 to 1987. Total factor productivity was measured with (1) a Tornqvist–Theil index, (2) a nonparametric index with translating hypothesis, and (3) a nonparametric index with distance functions. Method 1 implied a constant return to scale translog production function. Methods 2 and 3 removed any assumption on the functional form of the production function. Furthermore, method 3 allowed for fully disaggregated outputs. Methods 1 and 3 gave similar results within countries: an increase in total factor productivity of 0.7% per year in the United States and of 0.5% per year in Canada. Method 2 gave rates of growth of total factor productivity that were twice as high, but unreliable because of the assumptions of the method. From 1961 to 1984, when comparable data are available, methods 1 and 3 gave growth rates of total factor productivity that were significantly higher, statistically, in the United States than in Canada. Nevertheless, the differences seem to be too small to be of economic significance.

Sawlogs are in short supply in northern Ontario, and thinning has been suggested as one way to improve the situation. The only rotation-age jack pine (Pinusbanksiana Lamb.) thinning trial in the region was examined to assess how commercial thinning influenced wood quality. This report covers an unreplicated trial of a 65-year chronology of pith to bark relative densities and growth rates based on X-ray densitometry of breast-height increment cores taken from trees on two thinned plots (average spacing 2.6 and 3.4 m) and an unthinned control (average spacing 1.7 m). The trees on the treatment plots responded to thinning by producing wood with significantly lower relative density than those on the control plot. This trend continued much longer than reported for other pines and could negatively affect pulp yield or mechanical properties of lumber. Enhanced earlywood growth caused a drop in the proportion of latewood that resulted in the decline in density. Thinning may have improved moisture availability during the early and middle season and encouraged earlywood growth. Density and growth rate differences became apparent soon after treatment. Early, rapid, and inexpensive estimates of the product potential of younger thinning trials are possible using the techniques demonstrated here.

Edger and trimmer operators must make constant decisions in short time periods on the amount of materials to remove from boards produced in the sawmill. Their decisions directly affect the total volume, grade, and value of the boards, and they therefore directly affect the total value of lumber produced. In recent years, many softwood sawmills have installed computer controlled edgers and trimmers with scanners and optimizers to achieve higher recovery rates. Before similar, relatively expensive, technologies can be seriously evaluated for the hardwood industry, however, the current performance of edging and trimming operations must be known. Using a sample of 3360 boards, compiled from 37 hardwood sawmills located in 16 states, lumber grade, length, width, and dollar values obtained in edging and trimming operations were compared with values predicted by USDA Forest Service scientists for the same lumber. Significant differences between edging and trimming performance and predicted values were determined via statistical tests. A linear regression model was formulated to study the influence of overedging, overtrimming, and grade difference on the percentage of predicted dollar value achieved. It was found that most sawmills edged a relatively low proportion of their total production. In 99% of the boards, edging and trimming operations achieved similar values for grade and length to those predicted by the USDA scientists. The value of the lumber increased significantly as the amount of overedging decreased.

Estimates of ambrosia beetle damage on 10 log grades, commonly used in sawmills of coastal British Columbia, were determined by the sawmill team of an Ambrosia Beetle Task Force during 1990–1992. A total of 417 ambrosia beetle attacked logs were evaluated in eight cooperating sawmills. Test logs were processed into lumber products, graded, and valued. Estimates of dollar loss per cubic metre for various log diameter classes were made. The average losses for the 10 log grades with respect to grade of lumber, with and without pinholes, ranged from $3.27 to $77.40/m3 of log. Changes in sawing patterns as a result of ambrosia beetle infestation were also assessed. The loss of deep clear potential on high-grade logs increased value losses by 57%. One third of large pulp logs were sawn for lumber. Ambrosia beetle infestation of sawn large pulp logs resulted in $19.20/m3 degrade loss.

The rapid globalization of markets in the 1980s combined with increasing disposable incomes in Japan and western Europe has mandated global thinking by both forest products companies and producing regions. Moreover, competitive threats of both domestic and foreign origin must be addressed in strategic planning and operations for firms to compete effectively. The two end points for the continuum of strategic options for the export of wood products are international and global marketing. International marketing targets specific customer segments with distinctive product lines developed for each segment. Global marketing exports a single standardized product line to all customer segments regardless of geographical location. To successfully compete in the increasingly competitive world marketplace, companies and (or) industries in producing countries must understand the requirements, benefits, and disadvantages of these two dissimilar export approaches.