Exam 16: Exporting, Importing, and Countertrade

Discuss the importance of the Export-Import Bank, its goals, and its operations.

In an international transaction involving a bank as a third party, the exporter ships the product after

What is the Foreign Credit Insurance Association?

________ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

________ can be used when a government restricts the convertibility of its currency to preserve its foreign exchange reserves so they can be used to service international debt commitments and purchase crucial imports.

A counterpurchase gives exporters more flexibility than an offset.

Which of the following statements is true of exporting?

Countertrade is least attractive to large, diverse multinational enterprises.

In a letter of credit transaction, the importer secures the letter of credit

Describe the 14 steps in a typical international trade transaction.

________ occurs when a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them. 

A ________ allows for a delay in payment-normally 30, 60, 90, or 120 days.

________ is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent.

The main attraction of ________ is that it can give a firm a way to finance an export deal when other means are not available.

A ________ is simply an order written by an exporter instructing an importer, or an importer's agent, to pay a specified amount of money at a specified time.

Explain 3M's main export principles that have made the company's exporting business so successful.

________ is primarily used for one time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to miniature businesses on export-related matters?

A ________ states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.

Which of the following statements is true of export management companies (EMCs)?