Question 1

A firm can increase the probability of exporting successfully by taking which of these steps?

Accepted Answer

A)  avoid hiring EMCs to contain costs 
B)  hire home country personnel to build commitment 
C)  enter on a small scale 
D)  wait for the export opportunities to come to you 
E)  make extensive investments in building regional contacts 
A)  avoid hiring EMCs to contain costs 
B)  hire home country personnel to build commitment 
C)  enter on a small scale 
D)  wait for the export opportunities to come to you 
E)  make extensive investments in building regional contacts

Question 2

Which of the following is not a drawback of countertrade?

Accepted Answer

A)  firms would normally prefer cash 
B)  firms may be stuck with unusable goods 
C)  firms may be stuck with poor-quality goods 
D)  firms may be able to use buybacks to make a quick profit 
E)  firms may not be able to dispose of goods at a profit 
A)  firms would normally prefer cash 
B)  firms may be stuck with unusable goods 
C)  firms may be stuck with poor-quality goods 
D)  firms may be able to use buybacks to make a quick profit 
E)  firms may not be able to dispose of goods at a profit

Question 3

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 4

ITCs refer to what?

Accepted Answer

A)  International Trade Committees 
B)  International Transit Committees 
C)  International Trade Centres 
D)  Inter-provincial Trade Centres 
E)  Inter-governmental Trade Committees 
A)  International Trade Committees 
B)  International Transit Committees 
C)  International Trade Centres 
D)  Inter-provincial Trade Centres 
E)  Inter-governmental Trade Committees

Question 5

There is more than one type of countertrade.

Accepted Answer

A) True 
 B)False

Question 6

When a firm agrees to purchase a certain amount of materials back from a country to which a sale is made,it is called:

Accepted Answer

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

Question 7

3M has built its export success on all of these principles except:

Accepted Answer

A)  adding additional product lines once export operation is successful. 
B)  cultivating personal relationships with customers. 
C)  hiring local to promote the firm's products. 
D)  entering on a small scale to reduce risks. 
E)  using a first mover strategy. 
A)  adding additional product lines once export operation is successful. 
B)  cultivating personal relationships with customers. 
C)  hiring local to promote the firm's products. 
D)  entering on a small scale to reduce risks. 
E)  using a first mover strategy.

Question 8

Which of these countries is considered as one of the World's most successful exporting nation?

Accepted Answer

A)  Australia 
B)  The Philippines 
C)  Germany 
D)  The U.K. 
E)  Canada 
A)  Australia 
B)  The Philippines 
C)  Germany 
D)  The U.K. 
E)  Canada

Question 9

Until recently,Canada was mostly a(n)____________ when it came to international trade.

Accepted Answer

A)  market leader 
B)  economy where exports played a major role 
C)  economy built on countertrade 
D)  self-contained economy 
E)  example of the world's most successful exporting nations 
A)  market leader 
B)  economy where exports played a major role 
C)  economy built on countertrade 
D)  self-contained economy 
E)  example of the world's most successful exporting nations

Question 10

You want to understand the mechanisms for financing exports and imports as they relate to your business,which has never before exported or imported any goods (you have operated completely within your own province).Your company is small,at fewer than 25 employees,but you hope that it will grow substantially in the future.
Describe the financing mechanism known as the bill of lading.

Accepted Answer

Bill of Lading: The third critical docum

Question 11

From an exporter's perspective,an offset agreement is more attractive than a straight counter-purchase agreement because it gives the exporter greater flexibility to choose the goods that it wishes to purchase.

Accepted Answer

A) True 
 B)False

Question 12

ABC International's market research identified that Canadian consumers prefer relatively less sugar in their soft drinks whereas Asian consumers prefer more.ABC exported their best selling soft drink in Canada,Tasty,without modification to the Asian market.ABC committed which of the common mistakes of exporting?

Accepted Answer

A)  Poor market analysis 
B)  A failure to customize the product 
C)  A poorly executed promotional campaign 
D)  A poor understanding of competitive conditions 
E)  A poor choice of retailers 
A)  Poor market analysis 
B)  A failure to customize the product 
C)  A poorly executed promotional campaign 
D)  A poor understanding of competitive conditions 
E)  A poor choice of retailers

Question 13

Time drafts:

Accepted Answer

A)  have no value given the deferred nature of document 
B)  are generally not preferable in international transaction 
C)  are negotiable instruments 
D)  are also called bill of ladings 
E)  are replaced by sight drafts after all conditions are met 
A)  have no value given the deferred nature of document 
B)  are generally not preferable in international transaction 
C)  are negotiable instruments 
D)  are also called bill of ladings 
E)  are replaced by sight drafts after all conditions are met

Question 14

The set of international trading rules that set out the rights and obligations of buyers and sellers in international trade is known as what?

Accepted Answer

A)  DFAIT 
B)  FITT 
C)  Incoterms 
D)  The Paris declaration 
E)  EMCs 
A)  DFAIT 
B)  FITT 
C)  Incoterms 
D)  The Paris declaration 
E)  EMCs

Question 15

A ____________'s principle is to trade goods and services when they cannot be traded for money.

Accepted Answer

A)  letter of credit 
B)  draft 
C)  bill of exchange 
D)  countertrade 
E)  switch trading 
A)  letter of credit 
B)  draft 
C)  bill of exchange 
D)  countertrade 
E)  switch trading

Question 16

What is the attraction to firms of exporting?

Accepted Answer

A)  larger revenue 
B)  larger profits 
C)  the ability to gain cultural awareness 
D)  all of these answers are correct 
E)  both larger revenue and larger profits 
A)  larger revenue 
B)  larger profits 
C)  the ability to gain cultural awareness 
D)  all of these answers are correct 
E)  both larger revenue and larger profits

Question 17

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 18

The way to overcome ignorance about export opportunities is _________.

Accepted Answer

A)  to start importing 
B)  to DFAIT 
C)  to collect information 
D)  to use barter transactions 
E)  to use countertrade 
A)  to start importing 
B)  to DFAIT 
C)  to collect information 
D)  to use barter transactions 
E)  to use countertrade

Question 19

Issued by a bank at the request of an importer,the ________________ states that the bank will pay a specified sum of money to the beneficiary on presentation of particular,specified documents.

Accepted Answer

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

Question 20

According to the opening case,one of the things SteelMaster did to grow its export business was what?

Accepted Answer

A)  gain the redibility of foreign governments 
B)  obtain below market rate financing 
C)  open manufacturing facilities around the globe 
D)  learn other languages 
E)  have a dedicated person to develop international business 
A)  gain the redibility of foreign governments 
B)  obtain below market rate financing 
C)  open manufacturing facilities around the globe 
D)  learn other languages 
E)  have a dedicated person to develop international business

A firm can increase the probability of exporting successfully by taking which of these steps?

Which of the following is not a drawback of countertrade?

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

ITCs refer to what?

There is more than one type of countertrade.

When a firm agrees to purchase a certain amount of materials back from a country to which a sale is made,it is called:

3M has built its export success on all of these principles except:

Which of these countries is considered as one of the World's most successful exporting nation?

Until recently,Canada was mostly a(n)____________ when it came to international trade.

From an exporter's perspective,an offset agreement is more attractive than a straight counter-purchase agreement because it gives the exporter greater flexibility to choose the goods that it wishes to purchase.

Time drafts:

The set of international trading rules that set out the rights and obligations of buyers and sellers in international trade is known as what?

A ____________'s principle is to trade goods and services when they cannot be traded for money.

What is the attraction to firms of exporting?

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

The way to overcome ignorance about export opportunities is _________.

Issued by a bank at the request of an importer,the ________________ states that the bank will pay a specified sum of money to the beneficiary on presentation of particular,specified documents.

According to the opening case,one of the things SteelMaster did to grow its export business was what?

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 Randd

Global Manufacturing and Materials Management

Global Human Resource Management

Filters

Exam 13: Exporting,Importing,and Countertrade

A firm can increase the probability of exporting successfully by taking which of these steps?

Which of the following is not a drawback of countertrade?

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

ITCs refer to what?

There is more than one type of countertrade.

When a firm agrees to purchase a certain amount of materials back from a country to which a sale is made,it is called:

3M has built its export success on all of these principles except:

Which of these countries is considered as one of the World's most successful exporting nation?

Until recently,Canada was mostly a(n)____________ when it came to international trade.

From an exporter's perspective,an offset agreement is more attractive than a straight counter-purchase agreement because it gives the exporter greater flexibility to choose the goods that it wishes to purchase.

Time drafts:

The set of international trading rules that set out the rights and obligations of buyers and sellers in international trade is known as what?

A ____________'s principle is to trade goods and services when they cannot be traded for money.

What is the attraction to firms of exporting?

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

The way to overcome ignorance about export opportunities is _________.

Issued by a bank at the request of an importer,the ________________ states that the bank will pay a specified sum of money to the beneficiary on presentation of particular,specified documents.

According to the opening case,one of the things SteelMaster did to grow its export business was what?

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 Randd

Global Manufacturing and Materials Management

Global Human Resource Management

Filters