Exam 13: Exporting,Importing,and Countertrade

Within the U.S.Department of Commerce are two organizations dedicated to providing businesses with intelligence and assistance for attacking foreign markets: the Service Corps of Retired Executives (SCORE)and the Export Legal Assistance Network (ELAN).

Describe the meaning of export management companies.What are the advantages and drawbacks of using EMCs?

As a _____,a bill of lading can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank before final payment by the importer.

Most novice exporters realize the amount of management resources that have to be dedicated to cultivate business in foreign countries.

Albania offered such items as spring water,tomato juice,and chrome ore in exchange for a $60 million fertilizer and methanol complex.Which type of countertrade is this?

What is the drawback for the importer in using a letter of credit?

Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Why is lack of trust such a critical issue for firms engaged in international trade? How can firms engaged in trade reduce lack of trust issues?

Which of the following is payable on presentation to the drawee?

EMCs normally accept two types of export assignments.One,startup services are performed with the understanding that the EMC will have continuing responsibility for selling the firm's products.Two,they

Sight draft allows for a delay in payment.

Which of the following statements about medium and small-sized firms is true?

According to Don Gallion,president of FCX Systems,finding a good _____ is a critical factor in achieving success in exporting that will keep the firm out of trouble when it comes to customs and what one should and shouldn't do.

The most restrictive countertrade arrangement is:

In theory,the advantage of EMCs is that they are experienced specialists who can help the neophyte exporter identify opportunities and avoid common pitfalls.

Lack of trust between two parties engaged in international trade is accentuated by:

The letter of credit is issued by a bank at the request of a(n):

A good EMC has all of the following qualities EXCEPT:

A letter of credit is sometimes referred to as a bill of exchange.