Exam 14: Exporting and Countertrade

The ability to formulate and implement marketing plans and the extent of geographic coverage provided in the target market are evaluation criteria for an export intermediary's managerial commitment.

In a short essay, explain the importance of a freight forwarder to the facilitation of international trade transactions. What are the typical tasks assigned to the freight forwarder?

Incoterms are universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods.

Which of the following statements is true about open account?

Which of the following activities is applicable to the final stage of exporting?

When a firm establishes a presence in the foreign market by investing capital in and securing ownership of a factory, subsidiary, or other facility there, it is typically a(n) ________.

________ will internationalize via FDI because they require direct contact with customers.

Which of the following statements is true about managing export-import transactions?

The Internet facilitates international trade in the service sector by ________.

After managers have chosen an appropriate market for exporting, the next step is to ________.

GrajQ GmbH., an automobile manufacturing company based in Germany, requires a low-risk strategy to enter China. Which of the following foreign market entry strategies is the most suitable for GrajQ?

Organic Towel Exports (Scenario) The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's . Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels. -Which of the following should be considered first in making the decision to export OTC towels to Canada?

Frezt Inc., a focal firm, is a telecommunications company based in the United States. The company maintains a relatively low degree of control over its operations in Mexico City. The company has delegated most of its distribution activities to its Mexican partners. Which of the following foreign market entry strategies is the company implementing?

The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.

The top trading partner for the European Union is ________.

Exporting, licensing, and franchising require a relatively low level of managerial commitment and dedicated resources.

Lamp Shade Imports (Scenario) The ABC Lamp Company is an SME that designs and manufactures high quality lamps that are sold in high-end furniture stores across Canada and the United States. ABC imports lamp shades from Asia where costs are lower than in North America. ABC has received a large order from a hotel chain that wants to purchase 5,000 lamps in the next three months, and ABC will need to import corresponding lamp shades. ABC recently ended a relationship with a Chinese supplier due to the poor quality of shades that were shipped. ABC managers are seeking a new Asian supplier that can fill the hotel lamp order. -In order to eliminate the need for the Asian supplier to borrow money, what could ABC do?

National governments require exporters to obtain a license to protect the exported goods against damage, loss, pilferage, and delay.

________ is the discounting of a foreign account receivable by transferring title of the sold item and its account receivable to an organization-that specializes in purchasing accounts receivable-for cash at a discount from the face value.

Organic Towel Exports (Scenario) The Organic Towel Company (OTC) employs 400 workers at its facility in Liverpool, England, where the firm has been manufacturing 100% organic cotton towels for five years. OTC sells towels in the United Kingdom primarily to boutique hotels and specialty retail stores, as well as to individual consumers through the company's . Recently, OTC managers attended a trade show in London where they made contact with numerous foreign market managers. OTC received a request from Earth Waves, an organic clothing store in Toronto, Canada, for a large order of towels. OTC had not been looking into expanding, but firm managers are seriously considering the opportunity to reach a global niche market with their towels. -Which of the following documents is the contract between the shipping company and the exporter?