Exam 14: Exporting, Importing, and Countertrade

Pro-Racquets has a bill of lading for an order of 10,000 tennis rackets it will be exporting to a foreign distributor. The company takes this bill of lading to the local bank and uses it to obtain funds to hold the company over until final payment is received from the foreign distributor. In this situation, the bill of lading is being used as

A draft instructs the exporter to ship product.

One drawback of a countertrade agreement is that

In terms of exporting, what can be said of medium-sized and small firms?

The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the

Jamal Steel, a rapidly growing small steel company with annual revenues of $8 million, is looking to buy a large industrial furnace from Shinto Manufacturing, a Japan-based company. Rather than have a letter of credit binding the two parties, both agree on a draft. In international commerce, Shinto Manufacturing, the party initiating the draft, is known as the

The direct exchange of goods and/or services between two parties without a cash transaction is referred to as

Manuel, the CEO of Gilson Products, a small manufacturer of office furniture, is going abroad along with representatives of the U.S. Department of Commerce and other U.S. businesspeople to meet with qualified agents, distributors, and customers. Manuel is most likely participating in the

Rather than use cash, Indonesia traded textiles with the United States in exchange for corn. This is an example of which form of countertrade?

How do international and domestic practices of settling trade transactions differ?

Repayment of medium- and long-term loans that U.S. commercial banks make to foreign borrowers for purchasing U.S. exports is guaranteed by the

Reactive firms do not consider exporting until their domestic market is saturated.

When seeking opportunities for profitable exporting, large firms generally tend to be

As an exporter, Horizon Trading wants to be paid before a consignment is shipped. Correspondingly, its importer in Italy, Friggo Imports, wants to pay only upon receipt of the consignment. These conflicting preferences of Horizon Trading and Friggo Imports are most likely a manifestation of

A lack of trust between two parties engaged in international trade can be exacerbated by the

A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called a(n)

Compare and contrast the experience of exporting for U.S. firms with that of German and Japanese firms.

What is a characteristic of countertrade?

What is an accurate assessment when comparing exports of Germany, Japan, and the United States?

Firms engaged in international trade deal with people they may have never seen, who live in different countries, who speak different languages, and who abide by different legal systems. These factors result in