Question 1

Describe the Foreign Credit Insurance Association (FCIA).What types of risks does it cover?

Accepted Answer

In the United States,export credit insur

Question 2

Time drafts are negotiable instruments.

Accepted Answer

A) True 
 B)False

Question 3

A _____ gives the names and addresses of potential distributors in foreign markets along with businesses they are in,the products they handle,and their contact person.

Accepted Answer

A) matchmaker list 
B) best prospects list 
C) potential exporter list 
D) SCORE list 
A) matchmaker list 
B) best prospects list 
C) potential exporter list 
D) SCORE list

Question 4

When a firm enters a(n)_____ agreement with a country,it often ends up with what are called counterpurchase credits,which can be used to purchase goods from that country.

Accepted Answer

A) barter 
B) offset 
C) switch trading 
D) buyback 
A) barter 
B) offset 
C) switch trading 
D) buyback

Question 5

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

Accepted Answer

A) TradeNet Export Advisor 
B) Export Trade Assistance Partnership 
C) United States Trade Service 
D) Export Legal Assistance Network 
A) TradeNet Export Advisor 
B) Export Trade Assistance Partnership 
C) United States Trade Service 
D) Export Legal Assistance Network

Question 6

Why are small and medium-sized firms not proactive in seeking export opportunities?

Accepted Answer

A) They are familiar with the foreign market and know where they lie. 
B) The export market is similar to the home market in terms of legal and business practices. 
C) They are intimidated by the complexities and mechanics of exporting to countries. 
D) Domestic regulations limit their ability to export profitably. 
A) They are familiar with the foreign market and know where they lie. 
B) The export market is similar to the home market in terms of legal and business practices. 
C) They are intimidated by the complexities and mechanics of exporting to countries. 
D) Domestic regulations limit their ability to export profitably.

Question 7

The letter of credit

Accepted Answer

A) states that the bank will pay a specified sum of money to a beneficiary on presentation of particular,specified documents. 
B) is an order written by an exporter instructing an importer to pay a specified amount of money at a specified time. 
C) serves as a receipt,a contract,and a document of title. 
D) indicates that the carrier has received the merchandise described on the face of the document. 
A) states that the bank will pay a specified sum of money to a beneficiary on presentation of particular,specified documents. 
B) is an order written by an exporter instructing an importer to pay a specified amount of money at a specified time. 
C) serves as a receipt,a contract,and a document of title. 
D) indicates that the carrier has received the merchandise described on the face of the document.

Question 8

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

Accepted Answer

A) contract 
B) receipt 
C) document of title 
D) letter of credit 
A) contract 
B) receipt 
C) document of title 
D) letter of credit

Question 9

What are the guidelines that can help a novice exporter to increase the probability of exporting successfully?

Accepted Answer

Hire an EMC or at least an experienced

Question 10

The sogo shosha of Japan:

Accepted Answer

A) proactively,continuously seek export opportunities for their affiliated companies. 
B) exclusively serve the largest and most prestigious companies in Japan. 
C) have offices concentrated in the business district of Tokyo. 
D) have monopolized the export market in the country. 
A) proactively,continuously seek export opportunities for their affiliated companies. 
B) exclusively serve the largest and most prestigious companies in Japan. 
C) have offices concentrated in the business district of Tokyo. 
D) have monopolized the export market in the country.

Question 11

The United Nations has calculated that the time involved in preparing documentation,along with the costs of common errors in paperwork,often amounts to 10 percent of the final value of goods exported.

Accepted Answer

A) True 
 B)False

Question 12

Countries might be forced to use countertrade when a currency is

Accepted Answer

A) externally convertible. 
B) internally convertible. 
C) nonconvertible. 
D) freely convertible. 
A) externally convertible. 
B) internally convertible. 
C) nonconvertible. 
D) freely convertible.

Question 13

In domestic transactions,the buyer can often obtain possession of the merchandise without signing formal documents acknowledging his/her obligation to pay.

Accepted Answer

A) True 
 B)False

Question 14

Due to the lack of trust between two parties to an international transaction,both have the same preferences as to how the transaction should be configured.

Accepted Answer

A) True 
 B)False

Question 15

Counterpurchase:

Accepted Answer

A) is the most restrictive countertrade arrangement. 
B) is a reciprocal buying agreement. 
C) is the simplest countertrade arrangement. 
D) uses a specialized third-party trading house. 
A) is the most restrictive countertrade arrangement. 
B) is a reciprocal buying agreement. 
C) is the simplest countertrade arrangement. 
D) uses a specialized third-party trading house.

Question 16

Which of the following steps can increase a firm's probability of exporting successfully?

Accepted Answer

A) Avoid hiring EMCs to contain costs 
B) Enter several markets simultaneously to hedge risk 
C) Enter a foreign market on a small scale 
D) Wait for export opportunities to come 
A) Avoid hiring EMCs to contain costs 
B) Enter several markets simultaneously to hedge risk 
C) Enter a foreign market on a small scale 
D) Wait for export opportunities to come

Question 17

Occidental Petroleum negotiated a deal with Russia under which Occidental would build several ammonia plants in Russia and as partial payment receive ammonia over a 20-year period.This is an example of:

Accepted Answer

A) switch trading. 
B) a buyback. 
C) a counterpurchase. 
D) an offset. 
A) switch trading. 
B) a buyback. 
C) a counterpurchase. 
D) an offset.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

As a collateral,the bill of lading:

Accepted Answer

A) can be used to advance funds to the exporter by its local bank before or during shipment. 
B) specifies that the carrier is obligated to provide a transportation service in return for a certain charge. 
C) can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. 
D) states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents. 
A) can be used to advance funds to the exporter by its local bank before or during shipment. 
B) specifies that the carrier is obligated to provide a transportation service in return for a certain charge. 
C) can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. 
D) states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

Question 20

When issuing a letter of credit,the bank charges the exporter a fee for the service.

Accepted Answer

A) True 
 B)False

Describe the Foreign Credit Insurance Association (FCIA).What types of risks does it cover?

Time drafts are negotiable instruments.

A _____ gives the names and addresses of potential distributors in foreign markets along with businesses they are in,the products they handle,and their contact person.

When a firm enters a(n)_____ agreement with a country,it often ends up with what are called counterpurchase credits,which can be used to purchase goods from that country.

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

Why are small and medium-sized firms not proactive in seeking export opportunities?

The letter of credit

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

What are the guidelines that can help a novice exporter to increase the probability of exporting successfully?

The sogo shosha of Japan:

The United Nations has calculated that the time involved in preparing documentation,along with the costs of common errors in paperwork,often amounts to 10 percent of the final value of goods exported.

Countries might be forced to use countertrade when a currency is

In domestic transactions,the buyer can often obtain possession of the merchandise without signing formal documents acknowledging his/her obligation to pay.

Due to the lack of trust between two parties to an international transaction,both have the same preferences as to how the transaction should be configured.

Counterpurchase:

Which of the following steps can increase a firm's probability of exporting successfully?

Occidental Petroleum negotiated a deal with Russia under which Occidental would build several ammonia plants in Russia and as partial payment receive ammonia over a 20-year period.This is an example of:

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

As a collateral,the bill of lading:

When issuing a letter of credit,the bank charges the exporter a fee for the service.

Globalization

National Differences in Political Economy

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Global Production,Outsourcing,and Logistics

Global Marketing and RD

Global Human Resource Management

Filters

Exam 13: Exporting,Importing,and Countertrade

Describe the Foreign Credit Insurance Association (FCIA).What types of risks does it cover?

Time drafts are negotiable instruments.

A _____ gives the names and addresses of potential distributors in foreign markets along with businesses they are in,the products they handle,and their contact person.

When a firm enters a(n)_____ agreement with a country,it often ends up with what are called counterpurchase credits,which can be used to purchase goods from that country.

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

Why are small and medium-sized firms not proactive in seeking export opportunities?

The letter of credit

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

What are the guidelines that can help a novice exporter to increase the probability of exporting successfully?

The sogo shosha of Japan:

The United Nations has calculated that the time involved in preparing documentation,along with the costs of common errors in paperwork,often amounts to 10 percent of the final value of goods exported.

Countries might be forced to use countertrade when a currency is

In domestic transactions,the buyer can often obtain possession of the merchandise without signing formal documents acknowledging his/her obligation to pay.

Due to the lack of trust between two parties to an international transaction,both have the same preferences as to how the transaction should be configured.

Counterpurchase:

Which of the following steps can increase a firm's probability of exporting successfully?

Occidental Petroleum negotiated a deal with Russia under which Occidental would build several ammonia plants in Russia and as partial payment receive ammonia over a 20-year period.This is an example of:

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

As a collateral,the bill of lading:

When issuing a letter of credit,the bank charges the exporter a fee for the service.

Globalization

National Differences in Political Economy

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Global Production,Outsourcing,and Logistics

Global Marketing and RD

Global Human Resource Management

Filters