Exam 13: Exporting,Importing,and Countertrade

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

It often makes sense to enter a foreign market on a large scale to reduce the costs of any subsequent failure.

Once accepted,a time draft becomes a(n):

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

Unlike their German and Japanese competitors,many U.S.firms are relatively blind when they seek export opportunities;they are information disadvantaged.

A program in which department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers is called the:

Which of the following is an advantage of the letter of credit system to the exporter?

When a time draft is drawn on and accepted by a business firm,it is called a(n):

Saudi Arabia agreed to buy ten 747 jets from Boeing with payment in crude oil,discounted at 10 percent below posted world oil prices.This is an example of:

The firm that enters many markets at once runs the risk of spreading its limited management resources too thin.

What is the difference between a sight draft and a time draft?

Which of the following is one of the ways in which the U.S.Department of Commerce helps potential exporters?

What is countertrade? Give an example of when it can be used.

Explain how the Small Business Administration (SBA)can help potential exporters.D.C.Through its Service Corps of Retired Executives (SCORE)program,the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.The SBA also coordinates the Export Legal Assistance Network (ELAN),a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

Which of the following is NOT a distinct countertrade arrangement?

A U.S.firm concludes a counterpurchase agreement with Poland for which it receives some number of counterpurchase credits for purchasing Polish goods.The U.S.firm does not want any Polish goods,however,so it sells the credits to a third-party trading house at a discount.The trading house finds a firm that can use the credits and sells them at a profit.This is an example of

Exporters clearly prefer to get a _____ from importers.

Large firms generally tend to be _____ about seeking opportunities for profitable exporting,whereas medium-sized and small firms are _____.

The Ex-Im Bank provides _____ for the repayment of medium and long-term loans U.S.commercial banks make to foreign borrowers for purchasing U.S.exports.This makes the commercial banks more willing to lend cash to foreign enterprises.

The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment.The exporter can insure against this possibility by: