Question 1

Free trade zones are areas designated by the government of a country for duty-free entry of any nonprohibited good.

Accepted Answer

A) True 
 B)False

Question 2

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 develop an international marketing plan. 
B)  Treating international distributors on an equal basis with domestic counterparts. 
C)  Insufficient care in selecting overseas distributors. 
D)  Failure to consider the use of an export management company. 
A)  Failure to develop an international marketing plan. 
B)  Treating international distributors on an equal basis with domestic counterparts. 
C)  Insufficient care in selecting overseas distributors. 
D)  Failure to consider the use of an export management company.

Question 3

The sales agreement should specify as simply as possible the duties of the representative and the firm.

Accepted Answer

A) True 
 B)False

Question 4

Factoring allows the exporter to be more competitive by selling on open account rather than by means of the more costly letter of credit method.

Accepted Answer

A) True 
 B)False

Question 5

Which is the principal government agency responsible for aiding the export of American goods and services through a variety of loan,guarantee,and insurance programs?

Accepted Answer

A)  U.S. Export-Import Bank (Ex-Im Bank) 
B)  Overseas Private Investment Corporation (OPI
C)  
C)  Foreign Sales Corporation (FS
C)  
D)  Major League Baseball (ML
B)  
A)  U.S. Export-Import Bank (Ex-Im Bank) 
B)  Overseas Private Investment Corporation (OPI
C)  
C)  Foreign Sales Corporation (FS
C)  
D)  Major League Baseball (ML
B)

Question 6

Which of the following is the least risky for an importer?

Accepted Answer

A)  Irrevocable letter of credit 
B)  Open account 
C)  Consignment 
D)  Bank collection time draft 
A)  Irrevocable letter of credit 
B)  Open account 
C)  Consignment 
D)  Bank collection time draft

Question 7

The two major reasons U.S.firms give for not exporting are (1)preoccupation with the vast American market and (2)reluctance to become involved in a new and unknown operation.

Accepted Answer

A) True 
 B)False

Question 8

On an open account,the buyer assumes all of the payment risk.

Accepted Answer

A) True 
 B)False

Question 9

Basic named perils that marine insurance will covers include

Accepted Answer

A)  perils of the sea, fires, jettisons, hurricanes. 
B)  theft and larceny. 
C)  piracy on the seas. 
D)  accidents and storms other than hurricanes. 
E)  flooding, tsunamis, earthquakes. 
A)  perils of the sea, fires, jettisons, hurricanes. 
B)  theft and larceny. 
C)  piracy on the seas. 
D)  accidents and storms other than hurricanes. 
E)  flooding, tsunamis, earthquakes.

Question 10

A ____________ is a time draft with a maturity of less than 270 days that has been accepted by the bank on which the draft was drawn,thus becoming the accepting bank's obligation.

Accepted Answer

The answer of A ____________ is a time draft with...

Question 11

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

Accepted Answer

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

Question 12

An SED includes all of the following except

Accepted Answer

A)  names and addresses of the shipper and consignee. 
B)  U.S. port of exit and foreign port of unloading. 
C)  export license number and bill of lading number. 
D)  description and value of the goods. 
E)  carrier's manifest. 
A)  names and addresses of the shipper and consignee. 
B)  U.S. port of exit and foreign port of unloading. 
C)  export license number and bill of lading number. 
D)  description and value of the goods. 
E)  carrier's manifest.

Question 13

The sale of an exporter's accounts receivable on capital goods,commodities,and other high-value goods,with the payment due at least 180 days out is

Accepted Answer

A)  forfaiting. 
B)  consignment. 
C)  factoring. 
D)  banker's acceptance. 
E)  time draft. 
A)  forfaiting. 
B)  consignment. 
C)  factoring. 
D)  banker's acceptance. 
E)  time draft.

Question 14

Among the mistakes most commonly made by new exporters,taking insufficient care in selecting overseas sales ______ and distributors is a common one.

Accepted Answer

representatives
Explanation: Among the m

Question 15

The Small Business Administration (SBA)provides what kind of assistance?

Accepted Answer

A)  Grant programs to support international research 
B)  Education assistance 
C)  Financial assistance 
D)  Coupon redemption service 
E)  Advocacy for market access 
A)  Grant programs to support international research 
B)  Education assistance 
C)  Financial assistance 
D)  Coupon redemption service 
E)  Advocacy for market access

Question 16

Incoterms are 11 trade terms that describe the responsibilities of the buyer and seller in international trade.

Accepted Answer

A) True 
 B)False

Question 17

What is the first step in locating foreign markets?

Accepted Answer

A)  Identifying international agents. 
B)  Identifying international distributors. 
C)  Determining whether there is a need for the firm's products. 
D)  Hiring a customs broker. 
E)  Preparing an export marketing plan. 
A)  Identifying international agents. 
B)  Identifying international distributors. 
C)  Determining whether there is a need for the firm's products. 
D)  Hiring a customs broker. 
E)  Preparing an export marketing plan.

Question 18

The U.S.Export-Import Bank (Ex-Im Bank)offers all of the following except

Accepted Answer

A)  export credit insurance. 
B)  guarantees. 
C)  direct investments. 
D)  intermediary loans. 
E)  working capital guarantee. 
A)  export credit insurance. 
B)  guarantees. 
C)  direct investments. 
D)  intermediary loans. 
E)  working capital guarantee.

Question 19

A shipper's export declaration (SED)is a document required by the Department of Agriculture to control exports and supply export statistics.

Accepted Answer

A) True 
 B)False

Question 20

The Incoterm acronym FAS (named loading port),refers to

Accepted Answer

free alongside ship
Explanation: The Inc

Free trade zones are areas designated by the government of a country for duty-free entry of any nonprohibited good.

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?

The sales agreement should specify as simply as possible the duties of the representative and the firm.

Factoring allows the exporter to be more competitive by selling on open account rather than by means of the more costly letter of credit method.

Which is the principal government agency responsible for aiding the export of American goods and services through a variety of loan,guarantee,and insurance programs?

Which of the following is the least risky for an importer?

The two major reasons U.S.firms give for not exporting are (1)preoccupation with the vast American market and (2)reluctance to become involved in a new and unknown operation.

On an open account,the buyer assumes all of the payment risk.

Basic named perils that marine insurance will covers include

A ____________ is a time draft with a maturity of less than 270 days that has been accepted by the bank on which the draft was drawn,thus becoming the accepting bank's obligation.

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

An SED includes all of the following except

The sale of an exporter's accounts receivable on capital goods,commodities,and other high-value goods,with the payment due at least 180 days out is

Among the mistakes most commonly made by new exporters,taking insufficient care in selecting overseas sales ______ and distributors is a common one.

The Small Business Administration (SBA)provides what kind of assistance?

Incoterms are 11 trade terms that describe the responsibilities of the buyer and seller in international trade.

What is the first step in locating foreign markets?

The U.S.Export-Import Bank (Ex-Im Bank)offers all of the following except

A shipper's export declaration (SED)is a document required by the Department of Agriculture to control exports and supply export statistics.

The Incoterm acronym FAS (named loading port),refers to

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

Free trade zones are areas designated by the government of a country for duty-free entry of any nonprohibited good.

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?

The sales agreement should specify as simply as possible the duties of the representative and the firm.

Factoring allows the exporter to be more competitive by selling on open account rather than by means of the more costly letter of credit method.

Which is the principal government agency responsible for aiding the export of American goods and services through a variety of loan,guarantee,and insurance programs?

Which of the following is the least risky for an importer?

The two major reasons U.S.firms give for not exporting are (1)preoccupation with the vast American market and (2)reluctance to become involved in a new and unknown operation.

On an open account,the buyer assumes all of the payment risk.

Basic named perils that marine insurance will covers include

A ____________ is a time draft with a maturity of less than 270 days that has been accepted by the bank on which the draft was drawn,thus becoming the accepting bank's obligation.

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

An SED includes all of the following except

The sale of an exporter's accounts receivable on capital goods,commodities,and other high-value goods,with the payment due at least 180 days out is

Among the mistakes most commonly made by new exporters,taking insufficient care in selecting overseas sales ______ and distributors is a common one.

The Small Business Administration (SBA)provides what kind of assistance?

Incoterms are 11 trade terms that describe the responsibilities of the buyer and seller in international trade.

What is the first step in locating foreign markets?

The U.S.Export-Import Bank (Ex-Im Bank)offers all of the following except

A shipper's export declaration (SED)is a document required by the Department of Agriculture to control exports and supply export statistics.

The Incoterm acronym FAS (named loading port),refers to

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