Question 1

An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's ________.

Accepted Answer

A) in-house export organization 
B) bank 
C) freight forwarder 
D) credit union 
E) checking account 
A) in-house export organization 
B) bank 
C) freight forwarder 
D) credit union 
E) checking account B

Question 2

In an export/import transaction requiring a letter of credit (L/C), the exporter's (seller's)bank can be known as the "advising" bank, the "confirming" bank, or both.

Accepted Answer

A) True 
 B)False  True

Question 3

An executive is undecided whether to rely on in-house or external export specialists/ intermediaries in the home country.He is leaning towards direct representation in a market.What are the benefits of going forth with direct representation?

Accepted Answer

It is a common problem faced by many executives planning on exporting goods and services to foreign countries.There are two specific advantages to direct representation in a market.It allows decisions concerning program development, resource allocation, or price changes to be implemented unilaterally.Thus, control and communication aspects are major benefits.This is very significant when a product is not yet established in a market.It will require special marketing efforts for which direct efforts will be necessary rather than relying on intermediaries.Also, the marketer's investment ensures special efforts that are undertaken to achieve sales.With indirect or independent representation, such efforts and investment may not be that effective due to lack of incentives.It is also advantageous to get feedback and firsthand information related to the market.This information can greatly improve export marketing decisions concerning product, price, communications, and distribution.In essence, all operational parameters are under control.However, it should be noted that direct representation will depend on the size of the market.It may not be possible to have it when market size is small.

Question 4

The cooperative exporters are sometimes referred to as "mother hen."

Accepted Answer

A) True 
 B)False

Question 5

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

Accepted Answer

A) True 
 B)False

Question 6

Governments in Japan, Singapore, South Korea and China have supported exports for years which have tremendously helped their economies.Since exporting is a very important component of a country's business strategy, many government programs are offered that support exports.Describe ways by which governments can support exports.

Accepted Answer

Countries benefit a lot based on their f

Question 7

The WTO recently ruled that America's foreign sales corporation (FSC)law was acceptable to signatory countries.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

Accepted Answer

A) documentary credit (letter of credit) 
B) documentary collection 
C) cash in advance 
D) sales on open account 
E) draft 
A) documentary credit (letter of credit) 
B) documentary collection 
C) cash in advance 
D) sales on open account 
E) draft

Question 9

The chief executives of Swiss Swatch Group and Japanese Canon would like to:

Accepted Answer

A) outsource all of the manufacturing units overseas in order to save money. 
B) outsource a majority of the manufacturing functions overseas. 
C) retain a majority, if not all, of the manufacturing in their home country. 
D) establish "call centers" in developing countries in order to save labor costs. 
E) outsource a full line of new products only. 
A) outsource all of the manufacturing units overseas in order to save money. 
B) outsource a majority of the manufacturing functions overseas. 
C) retain a majority, if not all, of the manufacturing in their home country. 
D) establish "call centers" in developing countries in order to save labor costs. 
E) outsource a full line of new products only.

Question 10

According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualified for lower duties than human figures that are classified as dolls.

Accepted Answer

A) True 
 B)False

Question 11

Representatives of the apparel, footwear, and textile industries in may countries are deeply concerned about the impact increased trade with China will have on these sectors.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies?

Accepted Answer

A) ad valorem duty 
B) countervailing duty 
C) antidumping duty 
D) specific duty 
E) customs duty 
A) ad valorem duty 
B) countervailing duty 
C) antidumping duty 
D) specific duty 
E) customs duty

Question 13

________ is a/an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

Accepted Answer

A) Manufacturer's export agent 
B) Export commission representative 
C) Export merchant 
D) Export management company 
E) Cooperative exporter 
A) Manufacturer's export agent 
B) Export commission representative 
C) Export merchant 
D) Export management company 
E) Cooperative exporter

Question 14

Which set of documents generally represents the minimum documentation required to clear a shipment through customs?

Accepted Answer

A) packing list, commercial invoice 
B) bill of exchange, commercial invoice 
C) certificate of origin, bill of exchange 
D) packing list, insurance certificate 
E) letter of credit, commercial invoice 
A) packing list, commercial invoice 
B) bill of exchange, commercial invoice 
C) certificate of origin, bill of exchange 
D) packing list, insurance certificate 
E) letter of credit, commercial invoice

Question 15

What are customs duties? How do they work in controlling imported goods? Discuss in light of the different categories of customs duties.

Accepted Answer

There are two main categories of customs

Question 16

The Fly American Act is an example of a nontariff barrier.

Accepted Answer

A) True 
 B)False

Question 17

What is meant by "documentary credit?" How does "documentary collection" differ from "cash in advance" and "sales on open account"?

Accepted Answer

Documentary credits, also referred to as

Question 18

Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then reexported.

Accepted Answer

A) True 
 B)False

Question 19

In the post-September 11 business environment in the United States, imports have come under increased security.One of the initiatives taken in the interest of national security is:

Accepted Answer

A) NAFTA. 
B) C-TPAT. 
C) WTO. 
D) NTB. 
E) FSC. 
A) NAFTA. 
B) C-TPAT. 
C) WTO. 
D) NTB. 
E) FSC.

Question 20

Sweden applies a system to certain categories of imported agricultural products which is referred to as:

Accepted Answer

A) temporary surcharges. 
B) ad valorem duty. 
C) variable import levies. 
D) specific duty. 
E) countervailing duty. 
A) temporary surcharges. 
B) ad valorem duty. 
C) variable import levies. 
D) specific duty. 
E) countervailing duty.

An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's ________.

In an export/import transaction requiring a letter of credit (L/C), the exporter's (seller's)bank can be known as the "advising" bank, the "confirming" bank, or both.

An executive is undecided whether to rely on in-house or external export specialists/ intermediaries in the home country.He is leaning towards direct representation in a market.What are the benefits of going forth with direct representation?

The cooperative exporters are sometimes referred to as "mother hen."

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

The WTO recently ruled that America's foreign sales corporation (FSC)law was acceptable to signatory countries.

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

The chief executives of Swiss Swatch Group and Japanese Canon would like to:

According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualified for lower duties than human figures that are classified as dolls.

Representatives of the apparel, footwear, and textile industries in may countries are deeply concerned about the impact increased trade with China will have on these sectors.

Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies?

________ is a/an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

Which set of documents generally represents the minimum documentation required to clear a shipment through customs?

What are customs duties? How do they work in controlling imported goods? Discuss in light of the different categories of customs duties.

The Fly American Act is an example of a nontariff barrier.

What is meant by "documentary credit?" How does "documentary collection" differ from "cash in advance" and "sales on open account"?

Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then reexported.

In the post-September 11 business environment in the United States, imports have come under increased security.One of the initiatives taken in the interest of national security is:

Sweden applies a system to certain categories of imported agricultural products which is referred to as:

Introduction to Global Marketing

The Global Economic Environment

Regional Market Characteristics and Preferential Trade Agreements

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters

Exam 8: Importing, Exporting, and Sourcing

An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's ________.

In an export/import transaction requiring a letter of credit (L/C), the exporter's (seller's)bank can be known as the "advising" bank, the "confirming" bank, or both.

An executive is undecided whether to rely on in-house or external export specialists/ intermediaries in the home country.He is leaning towards direct representation in a market.What are the benefits of going forth with direct representation?

The cooperative exporters are sometimes referred to as "mother hen."

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

The WTO recently ruled that America's foreign sales corporation (FSC)law was acceptable to signatory countries.

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

The chief executives of Swiss Swatch Group and Japanese Canon would like to:

According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualified for lower duties than human figures that are classified as dolls.

Representatives of the apparel, footwear, and textile industries in may countries are deeply concerned about the impact increased trade with China will have on these sectors.

Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies?

________ is a/an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

Which set of documents generally represents the minimum documentation required to clear a shipment through customs?

What are customs duties? How do they work in controlling imported goods? Discuss in light of the different categories of customs duties.

The Fly American Act is an example of a nontariff barrier.

What is meant by "documentary credit?" How does "documentary collection" differ from "cash in advance" and "sales on open account"?

Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then reexported.

In the post-September 11 business environment in the United States, imports have come under increased security.One of the initiatives taken in the interest of national security is:

Sweden applies a system to certain categories of imported agricultural products which is referred to as:

Introduction to Global Marketing

The Global Economic Environment

Regional Market Characteristics and Preferential Trade Agreements

Social and Cultural Environments

The Political, Legal, and Regulatory Environments

Global Information Systems and Market Research

Segmentation, Targeting, and Positioning

Global Market Entry Strategies: Licensing, Investment, and Strategic Alliances

Brand and Product Decisions in Global Marketing

Pricing Decisions

Global Marketing Channels and Physical Distribution

Global Marketing Communications Decisions I: Advertising and Public Relations

Global Marketing Communications Decisions II: Sales Promotion, Personal Selling, and Special Forms of Marketing Communication

Global Marketing and the Digital Revolution

Strategic Elements of Competitive Advantage

Leadership, Organization, and Corporate Social Responsibility

Filters