Exam 16: Exporting, Importing, and Countertrade

A(n) _____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.

_____ is viewed as the most restrictive countertrade arrangement.

Countertrade denotes a whole range of agreements that involve financial exchanges.

The bank promises to pay on behalf of the importer when a bank is used as a third party in international transactions.

A(n) _____ can help new exporters identify opportunities and avoid common pitfalls.

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

As a receipt, the bill of lading indicates that the carrier:

Which of the following statements is true of export credit insurance?

In theory, the advantage of EMCs is that they are:

Compare and contrast time drafts and sight drafts.

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

Importers usually issue a _____ to importers in international transactions.

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

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

Through its _____ program, the SBA oversees about 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

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

Describe the information sources that are available to American companies to learn about export opportunities.

_____ are export specialists that act as the export marketing department or international department for their client firms.

The great promise of exporting is that: