Question 1

The Foreign Credit Insurance Association is part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

Accepted Answer

A) True 
 B)False

Question 2

When a time draft is drawn on and accepted by a business firm, it is called a trade acceptance.

Accepted Answer

A) True 
 B)False

Question 3

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Accepted Answer

There are several reasons firms do not t

Question 4

Compare and contrast the export assistance provided to German and Japanese companies with that given to American companies. Discuss the implications of the differences between the countries.

Accepted Answer

Germany, one of the world's most success

Question 5

Discuss the idea of compensation or buybacks as they relate to countertrade. Provide an example of a buyback arrangement.

Accepted Answer

A buyback occurs when a firm builds a pl

Question 6

Japan's ________ have offices all over the world, and they proactively, continuously seek export opportunities for their affiliated companies large and small.

Accepted Answer

A)  sogo shosha 
B)  kaizen 
C)  MITI 
D)  Samurai 
A)  sogo shosha 
B)  kaizen 
C)  MITI 
D)  Samurai

Question 7

The most comprehensive source of information for U.S. firms on exporting opportunities is the U.S. Department of Commerce.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is true of countertrade?

Accepted Answer

A)  Countertrade reduces the profitability of competing firms and is considered an unethical practice. 
B)  Countertrade is a conventional means to pay exporters. 
C)  Smaller organizations commonly use countertrade in international transactions. 
D)  Countertrade occurs when goods and services are traded for other goods and services. 
A)  Countertrade reduces the profitability of competing firms and is considered an unethical practice. 
B)  Countertrade is a conventional means to pay exporters. 
C)  Smaller organizations commonly use countertrade in international transactions. 
D)  Countertrade occurs when goods and services are traded for other goods and services.

Question 9

Ignorance of the potential opportunities is a huge barrier to exporting.

Accepted Answer

A) True 
 B)False

Question 10

Why is there a problem of trust that persists in international business?

Accepted Answer

Firms engaged in international trade hav

Question 11

Hiring an export management company (EMC) will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

Accepted Answer

A) True 
 B)False

Question 12

The bill of lading does not serve as a document of title as such.

Accepted Answer

A) True 
 B)False

Question 13

What is a reason that firms take a reactive approach to exporting rather than a proactive approach?

Accepted Answer

A)  Most firms are familiar with the foreign market opportunities and therefore do not need to utilize proactive approaches. 
B)  They are intimidated by the complexities and mechanics of exporting to countries where business practices, language, culture, legal systems, and currency are very different from the home market. 
C)  Most firms already know where the market potential and opportunities are and they do not need to be proactive. 
D)  They are not intimidated by the complexities and mechanics of exporting to foreign countries and can, therefore, use the same reactive approaches that work in their home market. 
A)  Most firms are familiar with the foreign market opportunities and therefore do not need to utilize proactive approaches. 
B)  They are intimidated by the complexities and mechanics of exporting to countries where business practices, language, culture, legal systems, and currency are very different from the home market. 
C)  Most firms already know where the market potential and opportunities are and they do not need to be proactive. 
D)  They are not intimidated by the complexities and mechanics of exporting to foreign countries and can, therefore, use the same reactive approaches that work in their home market.

Question 14

________ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

Accepted Answer

A)  Counterpurchase 
B)  Barter 
C)  Offset 
D)  Switch trading 
A)  Counterpurchase 
B)  Barter 
C)  Offset 
D)  Switch trading

Question 15

A draft used in international transactions

Accepted Answer

A)  is a document requesting payment. 
B)  explains the conditions of a contract. 
C)  is the same as a letter of credit. 
D)  gives a bank guarantee to an exporter. 
A)  is a document requesting payment. 
B)  explains the conditions of a contract. 
C)  is the same as a letter of credit. 
D)  gives a bank guarantee to an exporter.

Question 16

What type of firm is most likely to engage in countertrade? Why?

Accepted Answer

Countertrade is most attractive to large

Question 17

As a document of title, a ________ can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.

Accepted Answer

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

Question 18

________ are export specialists that offer a full menu of services to handle all aspects of exporting, similar to having an internal exporting department within your own firm.

Accepted Answer

A)  Small business development centers (SBDCs) 
B)  Centers for international business education and research (CIBERs) 
C)  Export legal assistance networks (ELANs) 
D)  Export management companies (EMCs) 
A)  Small business development centers (SBDCs) 
B)  Centers for international business education and research (CIBERs) 
C)  Export legal assistance networks (ELANs) 
D)  Export management companies (EMCs)

Question 19

Explain why barter is viewed as the most restrictive countertrade arrangement.

Accepted Answer

The simplest form of countertrade is bar

Question 20

The person or business initiating a draft is known as the

Accepted Answer

A)  beneficiary. 
B)  drawee. 
C)  maker. 
D)  trustee. 
A)  beneficiary. 
B)  drawee. 
C)  maker. 
D)  trustee.

The Foreign Credit Insurance Association is part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

When a time draft is drawn on and accepted by a business firm, it is called a trade acceptance.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Compare and contrast the export assistance provided to German and Japanese companies with that given to American companies. Discuss the implications of the differences between the countries.

Discuss the idea of compensation or buybacks as they relate to countertrade. Provide an example of a buyback arrangement.

Japan's ________ have offices all over the world, and they proactively, continuously seek export opportunities for their affiliated companies large and small.

The most comprehensive source of information for U.S. firms on exporting opportunities is the U.S. Department of Commerce.

Which of the following statements is true of countertrade?

Ignorance of the potential opportunities is a huge barrier to exporting.

Why is there a problem of trust that persists in international business?

Hiring an export management company (EMC) will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

The bill of lading does not serve as a document of title as such.

What is a reason that firms take a reactive approach to exporting rather than a proactive approach?

________ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

A draft used in international transactions

What type of firm is most likely to engage in countertrade? Why?

As a document of title, a ________ can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.

________ are export specialists that offer a full menu of services to handle all aspects of exporting, similar to having an internal exporting department within your own firm.

Explain why barter is viewed as the most restrictive countertrade arrangement.

The person or business initiating a draft is known as the

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

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Exam 16: Exporting, Importing, and Countertrade

The Foreign Credit Insurance Association is part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

When a time draft is drawn on and accepted by a business firm, it is called a trade acceptance.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Compare and contrast the export assistance provided to German and Japanese companies with that given to American companies. Discuss the implications of the differences between the countries.

Discuss the idea of compensation or buybacks as they relate to countertrade. Provide an example of a buyback arrangement.

Japan's ________ have offices all over the world, and they proactively, continuously seek export opportunities for their affiliated companies large and small.

The most comprehensive source of information for U.S. firms on exporting opportunities is the U.S. Department of Commerce.

Which of the following statements is true of countertrade?

Ignorance of the potential opportunities is a huge barrier to exporting.

Why is there a problem of trust that persists in international business?

Hiring an export management company (EMC) will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

The bill of lading does not serve as a document of title as such.

What is a reason that firms take a reactive approach to exporting rather than a proactive approach?

________ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

A draft used in international transactions

What type of firm is most likely to engage in countertrade? Why?

As a document of title, a ________ can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.

________ are export specialists that offer a full menu of services to handle all aspects of exporting, similar to having an internal exporting department within your own firm.

Explain why barter is viewed as the most restrictive countertrade arrangement.

The person or business initiating a draft is known as the

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