Exam 13: Exporting,Importing,and Countertrade

Countertrade is most attractive to small firms.

Barter is primarily used with trading partners who are not creditworthy or trustworthy.

A large vertically integrated Japanese trading house is known as a sogo shosha.

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

The person or business initiating the draft is known as the ____________.

Exporting remains a challenge for firms,especially for _______ firms that can find the process intimidating.

In the United States,what percent of firms export,according to the U.S.Small Business Administration?

International Trade Centres also promote international trade through what?

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

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

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 most important mechanism,the letter of credit.

Unlike their German and Japanese competitors,Canadian firms are still somewhat ____________ when they seek export opportunities.

A good EMC will have all of these except:

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

The highest rate of defaults on commercial transactions for Canadian exporters comes from whom?

As a ______________,a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge.

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. Do you believe that the complexity of export financing deters small firms such as yours from becoming involved in exporting? Is there a role for government? Explain with reference to the BDC.

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 draft (or bill of exchange).

Common pitfalls of exporting include all of these except:

Describe the pros and cons of countertrade.Who is most likely to engage in countertrade?