Question 1

Which of the following is a disadvantage of using a letter of credit (L/C)?

Accepted Answer

A)  A letter of credit does not give protection to the importer. 
B)  A letter of credit does not give protection to the exporter. 
C)  The exporter cannot avail pre-export financing when using a L/C. 
D)  The importer must pay a bank fee for the letter of credit. 
A)  A letter of credit does not give protection to the importer. 
B)  A letter of credit does not give protection to the exporter. 
C)  The exporter cannot avail pre-export financing when using a L/C. 
D)  The importer must pay a bank fee for the letter of credit.

Question 2

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

Accepted Answer

The Export-Import Bank, often referred t

Question 3

A ____ is the instrument normally used in international commerce to effect payment.

Accepted Answer

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

Question 4

Which of the following is a major advantage of using a letter of credit?

Accepted Answer

A)  It gives the importer time to resell the merchandise before payment. 
B)  It guarantees the exporter pre-export financing. 
C)  It helps international traders engage in trade with trust. 
D)  It guarantees the importer extra funds for other purposes. 
A)  It gives the importer time to resell the merchandise before payment. 
B)  It guarantees the exporter pre-export financing. 
C)  It helps international traders engage in trade with trust. 
D)  It guarantees the importer extra funds for other purposes.

Question 5

The main attraction of a(n) _____ is that it can give a firm a way to finance an export deal when there are no other means available.

Accepted Answer

A)  countertrade 
B)  buyback 
C)  counterpurchase 
D)  offset 
A)  countertrade 
B)  buyback 
C)  counterpurchase 
D)  offset

Question 6

_____ 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.

Accepted Answer

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

Question 7

The Foreign Credit Insurance Association provides coverage:

Accepted Answer

A)  to insure products during shipment. 
B)  against commercial risks and political risks faced by exporters. 
C)  to insure that products are delivered that have already been paid for. 
D)  against political risks faced by importers. 
A)  to insure products during shipment. 
B)  against commercial risks and political risks faced by exporters. 
C)  to insure that products are delivered that have already been paid for. 
D)  against political risks faced by importers.

Which of the following is a disadvantage of using a letter of credit (L/C)?

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

A ____ is the instrument normally used in international commerce to effect payment.

Which of the following is a major advantage of using a letter of credit?

The main attraction of a(n) _____ is that it can give a firm a way to finance an export deal when there are no other means available.

_____ 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.

The Foreign Credit Insurance Association provides coverage:

Globalization

National Differences in Political Economy, 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 Trade Pacts Give the Mexican Auto Industry an Edge

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 RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 16: Exporting, Importing, and Countertrade

Which of the following is a disadvantage of using a letter of credit (L/C)?

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

A ____ is the instrument normally used in international commerce to effect payment.

Which of the following is a major advantage of using a letter of credit?

The main attraction of a(n) _____ is that it can give a firm a way to finance an export deal when there are no other means available.

_____ 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.

The Foreign Credit Insurance Association provides coverage:

Globalization

National Differences in Political Economy, 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 Trade Pacts Give the Mexican Auto Industry an Edge

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 RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters