Exam 16: Exporting, Importing, and Countertrade

Discuss the idea of compensation or buybacks as they relate to countertrade. Provide an example of a buyback arrangement.

A draft used in international transactions ____.

The U.S. Department of Commerce organizes trade events that help potential exporters make foreign contacts and explore export opportunities.

The person or business initiating a draft is known as the ____.

Barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Lack of knowledge is one of the biggest impediments to a company becoming a successful exporter.

Explain how switch trading works.

Compare and contrast the export assistance provided to German and Japanese companies with that given to American companies. Discuss the implications of the differences between the countries.

In a typical international trade transaction, the ____.

Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to miniature businesses on export-related matters?

Compare and contrast time drafts and sight drafts.

Foreign Credit Insurance Association is a part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

What are the typical problems that novice exporters face when trying to export?

A time draft is payable on presentation to the drawee.

Explain 3M's main export principles that have made the company's exporting business so successful.

In a letter of credit transaction, the importer secures the letter of credit ____.

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

Proactive firms do not consider exporting until their domestic market is saturated.