Exam 14: Exporting, Importing, and Countertrade

Why do many neophyte exporters have problems when trying to do business abroad for the first time? What are the common pitfalls experienced by such exporters?

Which of the following is true of a letter of credit?

The list provided by the International Trade Administration to a potential exporter with the names and addresses of potential distributors in foreign markets, along with businesses they are in, is called the:

Which of the following is a common pitfall that novice exporters come across?

Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in international trade.

Which of the following refers to an export specialist that acts as an export marketing department for client firms?

In international commerce, the party initiating a draft is known as the:

From an exporter's perspective, why is an offset more attractive than a straight counterpurchase agreement?

A letter of credit may reduce an importer's ability to borrow funds for other purposes.

Reactive firms do not consider exporting until their domestic market is saturated.

Which of the following is true of exporting?

Repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for purchasing U.S. exports is guaranteed by the:

Exporting is often not an end in itself, but merely a step on the road toward establishment of foreign production.

The most comprehensive source of information on export opportunities for U.S. firms is the:

Representatives of the U.S. Department of Commerce accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers, as part of the:

The advantage of export management companies (EMCs) is that they are experienced specialists that can help the neophyte exporter identify opportunities and avoid common pitfalls.

Which of the following drafts allows for a delay in payment?

An exporter has to forgo a letter of credit when:

A draft, an instrument normally used in international commerce to effect payment, is also known as a letter of credit.

Which of the following is a way in which the U.S. Department of Commerce helps potential exporters?