Exam 16: Exporting, Importing, and Countertrade

Which of the following statements is true of reactive firms?

A banker's acceptance ____.

Which of the following statements is true of EMCs?

The Export-Import Bank is an independent agency of the World Trade Organization.

_____ denotes a whole range of barter-like agreements and its principle is to trade goods and services for other goods and services when they cannot be traded for money.

Barter is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

A _____ is payable on presentation to the drawee.

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

In an international transaction involving bank as a third party, the exporter ships the product after ____.

SCORE is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

A counterpurchase gives exporters more flexibility than an offset.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Which of the following is NOT a successful exporting strategy used by 3M?

Nearly every state in the U.S. maintains active trade commissions to promote exports.

EMCs are governmental agencies that help the U.S. Department of Commerce to promote export in the United States.

What type of firms is most likely to engage in countertrade? Why?

A _____ is issued to the exporter by the common carrier transporting the merchandise and serves as a receipt, a contract, and a document of title.

What is the Foreign Credit Insurance Association?

Barter is viewed as the least restrictive countertrade arrangement.

Which of the following is a document used to give the title of the products to a bank?