Exam 9: Exporting, Importing, and Global Sourcing

One of the drawbacks of countertrade is the quality of goods received which are often useless or of poor quality.

The sight draft is payable at a later time, typically 30, 60, 90, or 120 days in the future as specified by the draft.

A(n) _____ is an independent company that performs the duties that a firm's own export department would execute.

What are the hidden costs of outsourcing?

Multinational companies may purchase a local supplier to directly control the supply of raw materials. This is known as:

Companies use distributors because distributors know the local market and are a cost-effective way to enter that market.

The _____ is the person or entity buying or transporting goods from another country into one's home country.

Which of the following statements holds true for the time draft?

The document that declares the country from which the product originates is referred to as the _____.

Due to national security or product scarcity, some governments require that organizations need to acquire a(n) _____, which refers to the permission to export goods.

An export management company is an independent company that handles the necessary documentation, finds buyers for the export, and takes title of the goods for direct export.

In _____ the company delegates an entire process (e.g., accounts payable) to an outsource vendor.

Licensing makes for a flatter world, because it creates a legal vehicle for taking a product or service delivered in one country and providing a nearly identical version of that product or service in another country.

One of the disadvantages of licensing is the lower potential returns, compared to other forms of entry into the foreign market, because the revenues are shared between the parties.

_____ refers to a company establishing a new, wholly owned subsidiary from scratch where no previous facilities exist. HYPERLINK "http://glossary.reuters.com/index.php/Greenfield_Investment"