Question 1

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge, it is acting as a

Accepted Answer

A)  contract. 
B)  receipt. 
C)  document of title. 
D)  letter of credit. 
E)  bill of exchange. 
A)  contract. 
B)  receipt. 
C)  document of title. 
D)  letter of credit. 
E)  bill of exchange.

Question 2

Neptune Corp. is exporting for the first time to Australia and has contracted with Pinkerton Imports in Melbourne for an initial order valued at $110,000. Neptune Corp. wants Pinkerton Imports to secure a document from a Melbourne bank that indicates the bank will pay Neptune Corp. $110,000 upon presentation of specified documents by the exporter. What document is Neptune Corp. asking for?

Accepted Answer

A)  bill of lading 
B)  time draft 
C)  letter of credit 
D)  sight draft 
E)  bill of exchange 
A)  bill of lading 
B)  time draft 
C)  letter of credit 
D)  sight draft 
E)  bill of exchange

Question 3

Which institution within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets?

Accepted Answer

A)  International Trade Administration 
B)  Small Business Administration 
C)  Federal Trade Commission 
D)  Bureau of Competition 
E)  Bank of New York 
A)  International Trade Administration 
B)  Small Business Administration 
C)  Federal Trade Commission 
D)  Bureau of Competition 
E)  Bank of New York

Question 4

One characteristic of exporting that many first-time exporters do not realize is that

Accepted Answer

A)  many foreign customers require face-to-face negotiations on their home turf. 
B)  large firms tend to wait for the world to come to them, rather than going out into the world to seek opportunities. 
C)  exporters have the advantage of reduced paperwork and fewer formalities. 
D)  medium-size and small firms are proactive about seeking opportunities for profitable exporting. 
E)  firms that focus only on exporting often lose out on significant opportunities for growth and cost reduction. 
A)  many foreign customers require face-to-face negotiations on their home turf. 
B)  large firms tend to wait for the world to come to them, rather than going out into the world to seek opportunities. 
C)  exporters have the advantage of reduced paperwork and fewer formalities. 
D)  medium-size and small firms are proactive about seeking opportunities for profitable exporting. 
E)  firms that focus only on exporting often lose out on significant opportunities for growth and cost reduction.

Question 5

In terms of using a third party in international trade, title to the products is given to a bank by the exporter in the form of a document known as a

Accepted Answer

A)  merchandise bill. 
B)  bill of lading. 
C)  bill of exchange. 
D)  draft. 
E)  letter of credit. 
A)  merchandise bill. 
B)  bill of lading. 
C)  bill of exchange. 
D)  draft. 
E)  letter of credit.

Question 6

Deli-Lite has a contract with a foreign client to provide low-fat deli trays. Deli-Lite does not have one of the items the foreign client wants on the trays, so it decides to contract with Green Source to fulfill this contract. What is this an example of?

Accepted Answer

A)  piggyback marketing 
B)  an acquisition 
C)  a customs broker 
D)  licensing 
E)  a remarketer 
A)  piggyback marketing 
B)  an acquisition 
C)  a customs broker 
D)  licensing 
E)  a remarketer

Question 7

Briefly describe the different forms of government-backed assistance that help potential U.S. exporters finance their export programs.

Accepted Answer

Prospective U.S. exporters can draw on t

Question 8

The Eks-Plore Company exports outdoor gear for firms on the east coast of the United States. The company identifies companies in Europe and Asia that market and sell these products. Eks-Plore handles all documentation, logistics, and transportation for the products. What type of business is the Eks-Plore Company?

Accepted Answer

A)  export trading company 
B)  wholly owned subsidiary 
C)  franchise 
D)  confirming house 
E)  piggyback marketers 
A)  export trading company 
B)  wholly owned subsidiary 
C)  franchise 
D)  confirming house 
E)  piggyback marketers

Question 9

What is the first step in a typical international trade transaction?

Accepted Answer

A)  The exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms. 
B)  The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy. 
C)  The importer places an order with the exporter and asks the exporter if he would be willing to ship under a letter of credit. 
D)  The exporter ships the goods to the importer on a common carrier. An official of the carrier gives the exporter a bill of lading. 
E)  The trusted third party (usually a bank) issues a letter of credit in the importer's favor and sends it to the exporter's bank. 
A)  The exporter agrees to ship under a letter of credit and specifies relevant information such as prices and delivery terms. 
B)  The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy. 
C)  The importer places an order with the exporter and asks the exporter if he would be willing to ship under a letter of credit. 
D)  The exporter ships the goods to the importer on a common carrier. An official of the carrier gives the exporter a bill of lading. 
E)  The trusted third party (usually a bank) issues a letter of credit in the importer's favor and sends it to the exporter's bank.

Question 10

In international commerce, a person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

Accepted Answer

A) True 
 B)False

Question 11

Countertrade is most attractive for

Accepted Answer

A)  small exporters. 
B)  large multinational enterprises. 
C)  only U.S.-based firms. 
D)  any firm in democratic nations. 
E)  new companies. 
A)  small exporters. 
B)  large multinational enterprises. 
C)  only U.S.-based firms. 
D)  any firm in democratic nations. 
E)  new companies.

Question 12

Many medium-size firms are not proactive in seeking export opportunities because

Accepted Answer

A)  they are familiar with the foreign market and do not find it challenging enough. 
B)  the export market is similar to the home market in terms of legal and business practices. 
C)  they are intimidated by the complexities and mechanics of exporting to foreign countries. 
D)  domestic regulations limit their ability to export profitably. 
E)  they can't recruit managers with the expertise needed to cultivate business in foreign countries. 
A)  they are familiar with the foreign market and do not find it challenging enough. 
B)  the export market is similar to the home market in terms of legal and business practices. 
C)  they are intimidated by the complexities and mechanics of exporting to foreign countries. 
D)  domestic regulations limit their ability to export profitably. 
E)  they can't recruit managers with the expertise needed to cultivate business in foreign countries.

Question 13

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce.

Accepted Answer

A) True 
 B)False

Question 14

For an importer, what is a disadvantage of using a letter of credit for international transactions?

Accepted Answer

A)  It results in the importer losing control over the process of trading. 
B)  It reduces the exporter's level of trust in the importer. 
C)  It reduces the importer's ability to borrow funds for other purposes. 
D)  It requires the importer to repay the loan even before the merchandise is sold. 
E)  It is not issued at the importer's request. 
A)  It results in the importer losing control over the process of trading. 
B)  It reduces the exporter's level of trust in the importer. 
C)  It reduces the importer's ability to borrow funds for other purposes. 
D)  It requires the importer to repay the loan even before the merchandise is sold. 
E)  It is not issued at the importer's request.

Question 15

Barter is primarily used with trading partners who are not creditworthy or trustworthy.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast a customs broker with a confirming house.

Accepted Answer

Customs brokers can help companies avoid

Question 17

Saudi Arabia agreed to purchase 5,000 air conditioning systems from Air-Cool Corp. with payment in the form of crude oil that is discounted 22 percent below posted world oil prices. This transaction is a form of

Accepted Answer

A)  countertrade. 
B)  acquisition. 
C)  licensing. 
D)  greenfield venture. 
E)  piggyback marketing. 
A)  countertrade. 
B)  acquisition. 
C)  licensing. 
D)  greenfield venture. 
E)  piggyback marketing.

Question 18

Germany is one of the world's least successful exporting nations because it simply lacks knowledge of opportunities.

Accepted Answer

A) True 
 B)False

Question 19

Jeff, the sales manager for Audio-Visual Systems, a small family business, is eager to get the company on an export path. The CEO of the company is not convinced, however. To convince the CEO, Jeff should point out that firms that do not export often

Accepted Answer

A)  face problems of currency conversion. 
B)  lose out on significant opportunities for cost reduction. 
C)  are able to reduce their unit costs. 
D)  typically grow faster than those that do. 
E)  can more easily leverage their technology in foreign markets. 
A)  face problems of currency conversion. 
B)  lose out on significant opportunities for cost reduction. 
C)  are able to reduce their unit costs. 
D)  typically grow faster than those that do. 
E)  can more easily leverage their technology in foreign markets.

Question 20

Energy Source International builds a plant in Switzerland and agrees to take a certain percentage of the plant's output as partial payment for the contract. This type of countertrade is called a(n)

Accepted Answer

A)  counterpurchase. 
B)  offset. 
C)  switch trade. 
D)  buyback. 
E)  barter. 
A)  counterpurchase. 
B)  offset. 
C)  switch trade. 
D)  buyback. 
E)  barter.

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge, it is acting as a

Which institution within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets?

One characteristic of exporting that many first-time exporters do not realize is that

In terms of using a third party in international trade, title to the products is given to a bank by the exporter in the form of a document known as a

Deli-Lite has a contract with a foreign client to provide low-fat deli trays. Deli-Lite does not have one of the items the foreign client wants on the trays, so it decides to contract with Green Source to fulfill this contract. What is this an example of?

Briefly describe the different forms of government-backed assistance that help potential U.S. exporters finance their export programs.

What is the first step in a typical international trade transaction?

In international commerce, a person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

Countertrade is most attractive for

Many medium-size firms are not proactive in seeking export opportunities because

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce.

For an importer, what is a disadvantage of using a letter of credit for international transactions?

Barter is primarily used with trading partners who are not creditworthy or trustworthy.

Compare and contrast a customs broker with a confirming house.

Saudi Arabia agreed to purchase 5,000 air conditioning systems from Air-Cool Corp. with payment in the form of crude oil that is discounted 22 percent below posted world oil prices. This transaction is a form of

Germany is one of the world's least successful exporting nations because it simply lacks knowledge of opportunities.

Jeff, the sales manager for Audio-Visual Systems, a small family business, is eager to get the company on an export path. The CEO of the company is not convinced, however. To convince the CEO, Jeff should point out that firms that do not export often

Energy Source International builds a plant in Switzerland and agrees to take a certain percentage of the plant's output as partial payment for the contract. This type of countertrade is called a(n)

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Filters

Exam 14: Exporting, Importing, and Countertrade

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge, it is acting as a

Which institution within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets?

One characteristic of exporting that many first-time exporters do not realize is that

In terms of using a third party in international trade, title to the products is given to a bank by the exporter in the form of a document known as a

Deli-Lite has a contract with a foreign client to provide low-fat deli trays. Deli-Lite does not have one of the items the foreign client wants on the trays, so it decides to contract with Green Source to fulfill this contract. What is this an example of?

Briefly describe the different forms of government-backed assistance that help potential U.S. exporters finance their export programs.

What is the first step in a typical international trade transaction?

In international commerce, a person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

Countertrade is most attractive for

Many medium-size firms are not proactive in seeking export opportunities because

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce.

For an importer, what is a disadvantage of using a letter of credit for international transactions?

Barter is primarily used with trading partners who are not creditworthy or trustworthy.

Compare and contrast a customs broker with a confirming house.

Saudi Arabia agreed to purchase 5,000 air conditioning systems from Air-Cool Corp. with payment in the form of crude oil that is discounted 22 percent below posted world oil prices. This transaction is a form of

Germany is one of the world's least successful exporting nations because it simply lacks knowledge of opportunities.

Jeff, the sales manager for Audio-Visual Systems, a small family business, is eager to get the company on an export path. The CEO of the company is not convinced, however. To convince the CEO, Jeff should point out that firms that do not export often

Energy Source International builds a plant in Switzerland and agrees to take a certain percentage of the plant's output as partial payment for the contract. This type of countertrade is called a(n)

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Filters