Exam 9: Exporting, Importing, and Global Sourcing

This document is given to customs and port authorities during export transaction and the information in the document is used to compile statistics about exports from the country. This document is known as the _____.

Which of the following statements holds true for an open account?

Under a licensing agreement, the multinational firm grants rights on its intangible property to a foreign company for a specified period of time.

Which of the following can also function as collateral against loans?

Which of the following statements is true about distributors?

_____ refers to buying the raw materials, components, or services from companies outside the home country.

Distributors or export intermediaries are barred from taking title to the goods and then reselling them.

Which of the following statements holds true for the barter system?

_____ refers to the financing granted against collateral, which can be the imported/exported goods.

What are the two contractual modes of entry into a foreign country?

Most companies consider the market-entry option of licensing to be a high-risk option because of the heavy upfront investment.

Which of the following statements holds true for export declaration?

What are the advantages of licensing for a multinational firm?

In a(n) _____ structure, the seller receives cash contingent on the seller buying local products or services in the amount of (or a percentage of) the cash.

Import duties are lower for countries that are designated as a "most favored nation."

_____ refers to an organization that helps U.S. businesses invest overseas, particularly in developing countries, by providing direct loans and loan guarantees to projects that meet its guidelines.

In a(n) _____ joint venture, each partner contributes capital and resources in exchange for an equity stake and share in any resulting profits.

Which of the following statements holds true for the World Customs Organization (WCO)?

The draft that allows a period of 120 days to pay is very attractive for the importer because it allows time for the importer to sell the goods before having to pay for them.

Most companies consider licensing to be a low-risk market-entry option because there is typically no upfront investment.