Question 1

What rationales do U.S.nonexporting firms often offer to explain their avoidance of foreign markets?

Accepted Answer

Answers may vary,but two major reasons U.S.firms give for not exporting are their preoccupation with the vast American market and a reluctance to become involved in a new,unknown,and therefore risky operation.When managers of nonexporting firms are probed further on why they are not active in international markets,they generally mention the following three areas in which they lack knowledge: locating foreign markets,payment and financing procedures,and export procedures.The answer should cover these points and perhaps support them with examples.

Question 2

Why do companies not export?

Accepted Answer

A)  They do not wish to increase their sales. 
B)  They do not feel a need for exporting. 
C)  They are preoccupied with the host market. 
D)  They are reluctant to embark on a new and unknown operation. 
A)  They do not wish to increase their sales. 
B)  They do not feel a need for exporting. 
C)  They are preoccupied with the host market. 
D)  They are reluctant to embark on a new and unknown operation. D

Question 3

The export-marketing plan is essentially the same as the domestic marketing plan.

Accepted Answer

A) True 
 B)False  True

Question 4

Which of the following is the most risky for an exporter?

Accepted Answer

A)  Open account 
B)  Irrevocable letter of credit 
C)  Bank collection time draft 
D)  Cash in advance 
E)  Revocable letter of credit 
A)  Open account 
B)  Irrevocable letter of credit 
C)  Bank collection time draft 
D)  Cash in advance 
E)  Revocable letter of credit

Question 5

When the seller makes goods available at the factory or warehouse,where risk passes,is known as

Accepted Answer

Ex-Works
Explanation: When the

Question 6

The concept of the L/C is a simple one,the bank as intermediary between buyer and seller.In fact,though,a simple irrevocable L/C requires five steps to clear payment.

Accepted Answer

A) True 
 B)False

Question 7

The Incoterm for the situation where the seller loads the goods onto the ship and the risk passes to the buyer once they are aboard the ship,is

Accepted Answer

A)  CFR. 
B)  DAT. 
C)  CIF. 
D)  FOB. 
E)  FAS. 
A)  CFR. 
B)  DAT. 
C)  CIF. 
D)  FOB. 
E)  FAS.

Question 8

Once a firm determines that a market exists for its products,it needs to decide to export directly or indirectly.

Accepted Answer

A) True 
 B)False

Question 9

Most of what is contained in a sales agreement is the same in the contract for a domestic representative as for an export sale.However,which of the following is among the two areas requiring special attention in an export sales contract?

Accepted Answer

A)  Designation of responsibilities for collection of monies. 
B)  Designation for managing promotion of the product. 
C)  Designation of responsibilities for patent and trademark registration. 
D)  Designation of the deadline and mechanisms for completing the sale. 
A)  Designation of responsibilities for collection of monies. 
B)  Designation for managing promotion of the product. 
C)  Designation of responsibilities for patent and trademark registration. 
D)  Designation of the deadline and mechanisms for completing the sale.

Question 10

Of the 12 most common mistakes and pitfalls awaiting new exporters listed in the textbook,which one of the following is not in the list?

Accepted Answer

A)  Failure to provide readily available servicing for the product. 
B)  Failing to provide sales and warranty information in locally understood languages. 
C)  Failing to modify products to meet cultural preferences of other countries. 
D)  Failure to set up an export management company. 
A)  Failure to provide readily available servicing for the product. 
B)  Failing to provide sales and warranty information in locally understood languages. 
C)  Failing to modify products to meet cultural preferences of other countries. 
D)  Failure to set up an export management company.

Question 11

Identify and explain the different Incoterms.

Accepted Answer

Answers may vary but

Question 12

__________ is a stipulation that a letter of credit cannot be canceled without the seller's consent.

Accepted Answer

Irrevocable
Explanation: An ir

Question 13

"Comparing the total cost of ocean freight versus air freight,air freight may be cheaper." Which of the following components are not considered when making the previous statement?

Accepted Answer

A)  Insurance rates 
B)  Packing 
C)  Replacement cost of damaged goods 
D)  Inventory cost 
E)  Product age 
A)  Insurance rates 
B)  Packing 
C)  Replacement cost of damaged goods 
D)  Inventory cost 
E)  Product age

Question 14

Independent businesses that handle import shipments for compensation are

Accepted Answer

customhouse brokers
Explanation: Indepen

Question 15

On pricing,which of the following terms of sale are more convenient for foreign buyers because to establish their cost,they merely have to add the import duties,landing charges,and freight from the port of arrival to their warehouse?

Accepted Answer

A)  CFR 
B)  CIP 
C)  DAT 
D)  DAP 
E)  DDP 
A)  CFR 
B)  CIP 
C)  DAT 
D)  DAP 
E)  DDP

Question 16

The premiums charged by marine insurance companies on an international transaction depend on all of the following except

Accepted Answer

A)  the age of the ship. 
B)  whether the goods are stowed on deck or under deck. 
C)  the volume of business. 
D)  the nationality of the shipper. 
E)  how the good are packed. 
A)  the age of the ship. 
B)  whether the goods are stowed on deck or under deck. 
C)  the volume of business. 
D)  the nationality of the shipper. 
E)  how the good are packed.

Question 17

Customhouse brokers have functions parallel to those of foreign freight forwarders,but on the export side of the transaction.

Accepted Answer

A) True 
 B)False

Question 18

An unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation is

Accepted Answer

A)  an unconditional letter of credit. 
B)  a time draft. 
C)  a consignment. 
D)  a sight draft. 
A)  an unconditional letter of credit. 
B)  a time draft. 
C)  a consignment. 
D)  a sight draft.

Question 19

The Enforcement and Compliance unit of the ITA helps American business by

Accepted Answer

A)  providing advocacy for market access. 
B)  monitoring foreign country compliance with trade agreements. 
C)  shaping industry-specific trade policies and promotion strategies. 
D)  organizing trade missions and fairs. 
A)  providing advocacy for market access. 
B)  monitoring foreign country compliance with trade agreements. 
C)  shaping industry-specific trade policies and promotion strategies. 
D)  organizing trade missions and fairs.

Question 20

Bills of lading serve each of the following purposes except

Accepted Answer

A)  a contract for carriage between the shipper and the carrier. 
B)  a receipt from the buyer for goods received. 
C)  a receipt from the carrier for goods shipped. 
D)  a certificate of ownership. 
A)  a contract for carriage between the shipper and the carrier. 
B)  a receipt from the buyer for goods received. 
C)  a receipt from the carrier for goods shipped. 
D)  a certificate of ownership.

What rationales do U.S.nonexporting firms often offer to explain their avoidance of foreign markets?

Why do companies not export?

The export-marketing plan is essentially the same as the domestic marketing plan.

Which of the following is the most risky for an exporter?

When the seller makes goods available at the factory or warehouse,where risk passes,is known as

The concept of the L/C is a simple one,the bank as intermediary between buyer and seller.In fact,though,a simple irrevocable L/C requires five steps to clear payment.

The Incoterm for the situation where the seller loads the goods onto the ship and the risk passes to the buyer once they are aboard the ship,is

Once a firm determines that a market exists for its products,it needs to decide to export directly or indirectly.

Most of what is contained in a sales agreement is the same in the contract for a domestic representative as for an export sale.However,which of the following is among the two areas requiring special attention in an export sales contract?

Of the 12 most common mistakes and pitfalls awaiting new exporters listed in the textbook,which one of the following is not in the list?

Identify and explain the different Incoterms.

__________ is a stipulation that a letter of credit cannot be canceled without the seller's consent.

"Comparing the total cost of ocean freight versus air freight,air freight may be cheaper." Which of the following components are not considered when making the previous statement?

Independent businesses that handle import shipments for compensation are

On pricing,which of the following terms of sale are more convenient for foreign buyers because to establish their cost,they merely have to add the import duties,landing charges,and freight from the port of arrival to their warehouse?

The premiums charged by marine insurance companies on an international transaction depend on all of the following except

Customhouse brokers have functions parallel to those of foreign freight forwarders,but on the export side of the transaction.

An unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation is

The Enforcement and Compliance unit of the ITA helps American business by

Bills of lading serve each of the following purposes except

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

The International Monetary System and Financial Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix C: Global Operations and Supply Chain Management

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Exam 17: Appendix B: Export and Import Practices

What rationales do U.S.nonexporting firms often offer to explain their avoidance of foreign markets?

Why do companies not export?

The export-marketing plan is essentially the same as the domestic marketing plan.

Which of the following is the most risky for an exporter?

When the seller makes goods available at the factory or warehouse,where risk passes,is known as

The concept of the L/C is a simple one,the bank as intermediary between buyer and seller.In fact,though,a simple irrevocable L/C requires five steps to clear payment.

The Incoterm for the situation where the seller loads the goods onto the ship and the risk passes to the buyer once they are aboard the ship,is

Once a firm determines that a market exists for its products,it needs to decide to export directly or indirectly.

Most of what is contained in a sales agreement is the same in the contract for a domestic representative as for an export sale.However,which of the following is among the two areas requiring special attention in an export sales contract?

Of the 12 most common mistakes and pitfalls awaiting new exporters listed in the textbook,which one of the following is not in the list?

Identify and explain the different Incoterms.

__________ is a stipulation that a letter of credit cannot be canceled without the seller's consent.

"Comparing the total cost of ocean freight versus air freight,air freight may be cheaper." Which of the following components are not considered when making the previous statement?

Independent businesses that handle import shipments for compensation are

On pricing,which of the following terms of sale are more convenient for foreign buyers because to establish their cost,they merely have to add the import duties,landing charges,and freight from the port of arrival to their warehouse?

The premiums charged by marine insurance companies on an international transaction depend on all of the following except

Customhouse brokers have functions parallel to those of foreign freight forwarders,but on the export side of the transaction.

An unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation is

The Enforcement and Compliance unit of the ITA helps American business by

Bills of lading serve each of the following purposes except

The Challenging Context of International Business

International Trade and Investment

Sociocultural Forces

Sustainability and Natural Resources

Political Forces That Affect Global Trade

Intellectual Property Rights and Other Legal Forces

Economic and Socioeconomic Forces

The International Monetary System and Financial Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

International Markets: Assessment and Entry Modes

Marketing Internationally

Managing Human Resources in an International Context

International Accounting and Financial Management

Appendix A: International Institutions From a Business Perspective

Appendix C: Global Operations and Supply Chain Management

Filters