Question 1

Bank charges on letters of credit will depend on the

Accepted Answer

A)  Exporter's creditworthiness. 
B)  size of the transaction. 
C)  Exporter's means of finance. 
D)  time taken to approve the sale. 
A)  Exporter's creditworthiness. 
B)  size of the transaction. 
C)  Exporter's means of finance. 
D)  time taken to approve the sale. B

Question 2

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Accepted Answer

A) True 
 B)False  True

Question 3

Through its ________ program, the SBA oversees about 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Accepted Answer

A)  matchmaker 
B)  SCORE 
C)  ELAN 
D)  trade fair 
A)  matchmaker 
B)  SCORE 
C)  ELAN 
D)  trade fair B

Question 4

A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

Accepted Answer

A) True 
 B)False

Question 5

What problems do novice exporters typically face when trying to export?

Accepted Answer

Novice exporters run into significant pr

Question 6

Countertrade emerged in the 1960s as a way for the ________ to purchase imports.

Accepted Answer

A)  United States 
B)  European Union 
C)  ASEAN countries 
D)  Soviet Union and the then-communist states of Eastern Europe 
A)  United States 
B)  European Union 
C)  ASEAN countries 
D)  Soviet Union and the then-communist states of Eastern Europe

Question 7

Lack of knowledge is one of the biggest impediments to a company becoming a successful exporter.

Accepted Answer

A) True 
 B)False

Question 8

The main attraction of ________ is that it can give a firm a way to finance an export deal when there are no other means available.

Accepted Answer

A)  a countertrade 
B)  a buyback 
C)  a counterpurchase 
D)  an offset 
A)  a countertrade 
B)  a buyback 
C)  a counterpurchase 
D)  an offset

Question 9

Which of the following is a successful exporting strategy used by 3M?

Accepted Answer

A)  Add additional products once exporting becomes successful. 
B)  Enter many markets at one time to gain maximum exposure. 
C)  Bring in expert marketing specialists to promote the firm's products. 
D)  Enter on a large scale to flood the market. 
A)  Add additional products once exporting becomes successful. 
B)  Enter many markets at one time to gain maximum exposure. 
C)  Bring in expert marketing specialists to promote the firm's products. 
D)  Enter on a large scale to flood the market.

Question 10

The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.

Accepted Answer

A) True 
 B)False

Question 11

The Japanese sogo shosha have offices all over Japan, and companies wishing to trade with Japan must go through them.

Accepted Answer

A) True 
 B)False

Question 12

What is true of exporting?

Accepted Answer

A)  A common pitfall of exporting is a poor understanding of competitive conditions in the foreign market. 
B)  Securing financing is rarely a problem for exporters. 
C)  A common pitfall of exporting is trying too hard to customize a product offering rather than "sticking with what you know." 
D)  Most exporters have a very good understanding of the competitive conditions in the foreign market. 
A)  A common pitfall of exporting is a poor understanding of competitive conditions in the foreign market. 
B)  Securing financing is rarely a problem for exporters. 
C)  A common pitfall of exporting is trying too hard to customize a product offering rather than "sticking with what you know." 
D)  Most exporters have a very good understanding of the competitive conditions in the foreign market.

Question 13

A ________ is payable on presentation to the drawee.

Accepted Answer

A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit 
A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit

Question 14

Which of the following is an advantage of countertrade?

Accepted Answer

A)  Countertrade uses instruments such as time drafts and sight drafts. 
B)  It is an effective way of doing business with developing nations. 
C)  It provides exporters an opportunity to obtain direct revenue. 
D)  Countertrade prevents the exchange of unusable or poor-quality goods. 
A)  Countertrade uses instruments such as time drafts and sight drafts. 
B)  It is an effective way of doing business with developing nations. 
C)  It provides exporters an opportunity to obtain direct revenue. 
D)  Countertrade prevents the exchange of unusable or poor-quality goods.

Question 15

________ occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Accepted Answer

A)  Barter 
B)  Offset 
C)  Counterpurchase 
D)  Buyback 
A)  Barter 
B)  Offset 
C)  Counterpurchase 
D)  Buyback

Question 16

A banker's acceptance

Accepted Answer

A)  is payable to the drawee immediately on presentation in a bank. 
B)  is a time draft that has been drawn on and accepted by a bank. 
C)  is a sight draft that can be used as a negotiable instrument in banks. 
D)  allows a buyer possession of the merchandise without signing any formal documents. 
A)  is payable to the drawee immediately on presentation in a bank. 
B)  is a time draft that has been drawn on and accepted by a bank. 
C)  is a sight draft that can be used as a negotiable instrument in banks. 
D)  allows a buyer possession of the merchandise without signing any formal documents.

Question 17

The Export-Import Bank

Accepted Answer

A)  is an international financial institution that provides loans for capital programs. 
B)  provides finance to facilitate cross-border trade between the United States and other countries. 
C)  is an independent agency of the United Nations. 
D)  focuses on policies that have an impact on the exchange rate and the balance of payments. 
A)  is an international financial institution that provides loans for capital programs. 
B)  provides finance to facilitate cross-border trade between the United States and other countries. 
C)  is an independent agency of the United Nations. 
D)  focuses on policies that have an impact on the exchange rate and the balance of payments.

Question 18

Compare and contrast time drafts and sight drafts.

Accepted Answer

A draft, sometimes referred to as a bill

Question 19

A ________ allows for a delay in payment.

Accepted Answer

A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit 
A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit

Question 20

A ________ serves as a receipt, a contract, and a document of title.

Accepted Answer

A)  letter of credit 
B)  bill of lading 
C)  draft 
D)  bill of exchange 
A)  letter of credit 
B)  bill of lading 
C)  draft 
D)  bill of exchange

Bank charges on letters of credit will depend on the

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Through its ________ program, the SBA oversees about 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

What problems do novice exporters typically face when trying to export?

Countertrade emerged in the 1960s as a way for the ________ to purchase imports.

Lack of knowledge is one of the biggest impediments to a company becoming a successful exporter.

The main attraction of ________ is that it can give a firm a way to finance an export deal when there are no other means available.

Which of the following is a successful exporting strategy used by 3M?

The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.

The Japanese sogo shosha have offices all over Japan, and companies wishing to trade with Japan must go through them.

What is true of exporting?

A ________ is payable on presentation to the drawee.

Which of the following is an advantage of countertrade?

________ occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

A banker's acceptance

The Export-Import Bank

Compare and contrast time drafts and sight drafts.

A ________ allows for a delay in payment.

A ________ serves as a receipt, a contract, and a document of title.

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 16: Exporting, Importing, and Countertrade

Bank charges on letters of credit will depend on the

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Through its ________ program, the SBA oversees about 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

What problems do novice exporters typically face when trying to export?

Countertrade emerged in the 1960s as a way for the ________ to purchase imports.

Lack of knowledge is one of the biggest impediments to a company becoming a successful exporter.

The main attraction of ________ is that it can give a firm a way to finance an export deal when there are no other means available.

Which of the following is a successful exporting strategy used by 3M?

The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.

The Japanese sogo shosha have offices all over Japan, and companies wishing to trade with Japan must go through them.

What is true of exporting?

A ________ is payable on presentation to the drawee.

Which of the following is an advantage of countertrade?

________ occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

A banker's acceptance

The Export-Import Bank

Compare and contrast time drafts and sight drafts.

A ________ allows for a delay in payment.

A ________ serves as a receipt, a contract, and a document of title.

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters