Question 1

A draft is sometimes referred to as a:

Accepted Answer

A) bill of exchange. 
B) letter of credit. 
C) bill of lading. 
D) counter purchase. 
E) payment order. 
A) bill of exchange. 
B) letter of credit. 
C) bill of lading. 
D) counter purchase. 
E) payment order. A

Question 2

Countertrade is an alternative means of structuring an international sale.

Accepted Answer

A) True 
 B)False  True

Question 3

A sight draft allows for a delay in payment.

Accepted Answer

A) True 
 B)False  False

Question 4

For Canadian firms, one of the most comprehensive sources of export opportunities information is/are the:

Accepted Answer

A) Trade Commissioners. 
B) the United Nations. 
C) Team Canada. 
D) foreign embassies. 
E) Industry Canada. 
A) Trade Commissioners. 
B) the United Nations. 
C) Team Canada. 
D) foreign embassies. 
E) Industry Canada.

Question 5

What is countertrade? Give an example of when it can be used.

Accepted Answer

Countertrade is an alternative means of

Question 6

What is the Export Development bank? What is its mission? How does it pursue its mission?

Accepted Answer

The EDC is crown corporation.I

Question 7

Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters?

Accepted Answer

Neophyte exporters tend to underestimate

Question 8

When a specialized third-party trading house is used in a countertrade arrangement, it is called:

Accepted Answer

A) counter-purchase. 
B) offset. 
C) managed barter. 
D) buyback. 
E) switch trading. 
A) counter-purchase. 
B) offset. 
C) managed barter. 
D) buyback. 
E) switch trading.

Question 9

Given the financial and other risks, today, governments at all levels in Canada are not willing to assist small firms in starting export operations.

Accepted Answer

A) True 
 B)False

Question 10

What is the difference between a sight draft and a time draft?

Accepted Answer

A sight draft is payable on presentation

Question 11

Toddler Toys, which recently opened for business, has 45 employees and about $10 million in sales.Given the small size of the firm, according to studies, Toddler Toys would be ___________ seeking opportunities for profitable exporting.

Accepted Answer

A) proactive about 
B) prohibited from 
C) reactive about 
D) government-driven for 
E) discouraged from 
A) proactive about 
B) prohibited from 
C) reactive about 
D) government-driven for 
E) discouraged from

Question 12

Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)?

Accepted Answer

A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank. 
B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank. 
C) The exporter's bank is the advising, confirming, and issuing bank. 
D) The importer's bank is the advising, confirming, and issuing bank. 
E) The exporter's bank is the drawee; the importer's bank is the payee. 
A) The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank. 
B) The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank. 
C) The exporter's bank is the advising, confirming, and issuing bank. 
D) The importer's bank is the advising, confirming, and issuing bank. 
E) The exporter's bank is the drawee; the importer's bank is the payee.

Question 14

Time drafts are negotiable instruments.

Accepted Answer

A) True 
 B)False

Question 15

Great trading houses in Japan are called:

Accepted Answer

A) kaizen. 
B) sogo shosha. 
C) MITI. 
D) guanxi. 
E) keiratsu. 
A) kaizen. 
B) sogo shosha. 
C) MITI. 
D) guanxi. 
E) keiratsu.

Question 16

Describe the mechanisms for financing export and imports.Do you believe that the complexity of export financing deters small firms from becoming involved in exporting? Explain your answer.

Accepted Answer

There are three principle mechanisms use

Question 17

For the service of providing letter of credit, the bank's service charge ranges between ____________ of the value of L/C.

Accepted Answer

A) 5 to 7 percent 
B) 10 to 15 percent 
C) 3 to 4 percent 
D) 0.5 to 2 percent 
E) 1 to 3 percent 
A) 5 to 7 percent 
B) 10 to 15 percent 
C) 3 to 4 percent 
D) 0.5 to 2 percent 
E) 1 to 3 percent

Question 18

When a firm builds a plant in a country-or supplies technology, equipment, training, or other services to the country-and agrees to take a certain percentage of the plant's output as partial payment for the contract, it is called:

Accepted Answer

A) counter-purchase. 
B) offset. 
C) switch trading. 
D) buyback. 
E) industrial barter. 
A) counter-purchase. 
B) offset. 
C) switch trading. 
D) buyback. 
E) industrial barter.

Question 19

The most restrictive countertrade arrangement is:

Accepted Answer

A) counter-purchase. 
B) offset. 
C) buybacks. 
D) switch trading. 
E) barter. 
A) counter-purchase. 
B) offset. 
C) buybacks. 
D) switch trading. 
E) barter.

Question 20

As a receipt, the _______________ indicates that the carrier has received the merchandise described on the face of the document.

Accepted Answer

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

A draft is sometimes referred to as a:

Countertrade is an alternative means of structuring an international sale.

A sight draft allows for a delay in payment.

For Canadian firms, one of the most comprehensive sources of export opportunities information is/are the:

What is countertrade? Give an example of when it can be used.

What is the Export Development bank? What is its mission? How does it pursue its mission?

Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters?

When a specialized third-party trading house is used in a countertrade arrangement, it is called:

Given the financial and other risks, today, governments at all levels in Canada are not willing to assist small firms in starting export operations.

What is the difference between a sight draft and a time draft?

Toddler Toys, which recently opened for business, has 45 employees and about $10 million in sales.Given the small size of the firm, according to studies, Toddler Toys would be ___________ seeking opportunities for profitable exporting.

Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries.

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)?

Time drafts are negotiable instruments.

Great trading houses in Japan are called:

Describe the mechanisms for financing export and imports.Do you believe that the complexity of export financing deters small firms from becoming involved in exporting? Explain your answer.

For the service of providing letter of credit, the bank's service charge ranges between ____________ of the value of L/C.

When a firm builds a plant in a country-or supplies technology, equipment, training, or other services to the country-and agrees to take a certain percentage of the plant's output as partial payment for the contract, it is called:

The most restrictive countertrade arrangement is:

As a receipt, the _______________ indicates that the carrier has received the merchandise described on the face of the document.

Globalization

Country Differences in Political Economy

The Cultural Environment

Ethics in International Business

International Trade Theories

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The Global Monetary System

Global Strategy

Entering Foreign Markets

Global Marketing and RD

Global Production, Outsourcing, and Logistics

Global Human Resource Management

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Exam 13: Exporting, Importing, and Countertrade

A draft is sometimes referred to as a:

Countertrade is an alternative means of structuring an international sale.

A sight draft allows for a delay in payment.

For Canadian firms, one of the most comprehensive sources of export opportunities information is/are the:

What is countertrade? Give an example of when it can be used.

What is the Export Development bank? What is its mission? How does it pursue its mission?

Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters?

When a specialized third-party trading house is used in a countertrade arrangement, it is called:

Given the financial and other risks, today, governments at all levels in Canada are not willing to assist small firms in starting export operations.

What is the difference between a sight draft and a time draft?

Toddler Toys, which recently opened for business, has 45 employees and about $10 million in sales.Given the small size of the firm, according to studies, Toddler Toys would be ___________ seeking opportunities for profitable exporting.

Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries.

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)?

Time drafts are negotiable instruments.

Great trading houses in Japan are called:

Describe the mechanisms for financing export and imports.Do you believe that the complexity of export financing deters small firms from becoming involved in exporting? Explain your answer.

For the service of providing letter of credit, the bank's service charge ranges between ____________ of the value of L/C.

When a firm builds a plant in a country-or supplies technology, equipment, training, or other services to the country-and agrees to take a certain percentage of the plant's output as partial payment for the contract, it is called:

The most restrictive countertrade arrangement is:

As a receipt, the _______________ indicates that the carrier has received the merchandise described on the face of the document.

Globalization

Country Differences in Political Economy

The Cultural Environment

Ethics in International Business

International Trade Theories

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The Global Monetary System

Global Strategy

Entering Foreign Markets

Global Marketing and RD

Global Production, Outsourcing, and Logistics

Global Human Resource Management

Filters