Situation

Jerzy wants to keep his overall costs down and to enter into the international marketplace slowly and carefully. He is considering the use of countertrade, where he would send his shoes to Spain in return for high$-$quality Spanish cowhides.

Jerzy knows that he will have to expand his operations if he wants to produce enough shoes for an international market. He has heard that there are shoe dyers in the Ukraine who will work for much lower prices than the dyers in his town charge. Jerzy is considering sending some of his work out to a Ukrainian shoe dying factory as a way to keep his costs down while he determines exactly how much demathd exists for his product. In thinking about it$,$ Jerzy realizes that he and Leon could create a shoe$-$manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon's expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.