Exam 13: Exporting,Importing,and Countertrade

Why is barter not a common arrangement?

The two categories of drafts are:

In the event of the lack of a letter of credit,export credit insurance can protect the exporter against the possibility of importer's default on payment.

The letter of credit reduces the importer's ability to borrow funds for other purposes.

Why does a letter of credit reduce an importer's ability to borrow funds?

3M has built its export success on all of the following principles EXCEPT:

When a letter of credit is used in exporting arrangements

The text suggests that exporting is not an end in itself,but merely a step toward:

According to the Small Business Administration,exporters still account for only a tiny percentage of U.S.firms-less than 5 percent of firms with fewer than 500 employees

A company of export specialists that acts as an export marketing department for client firms is called a(n):

Unfortunately due to higher default risks,commercial banks and major accounting firms are less willing to assist small firms in starting export operations than they were a decade ago.

In international trade,the supplier (exporter)of a good wants to be paid before he ships his consignment.Correspondingly,the buyer (importer)wants to make payment only upon the receipt of the good.These varying,often conflicting,preferences of parties to a trade are a manifestation of:

Which of the following stands at the center of international commercial transactions?

What is the advantage of export credit insurance?

What are sogo shosha? How do sogo shosha help Japanese exporters? What role do they play in countertrade?

When a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract,it is called:

Briefly describe the role of the U.S.Department of Commerce in helping U.S.firms increase their knowledge of export opportunities.

A U.S.firm sells some products to China.China pays the U.S.firm in dollars,but in exchange,the U.S.firm agrees to spend some of its proceeds from the sale on textiles produced by China.Which type of countertrade is this?

What is the main attraction of countertrade?

Which type of countertrade is the simplest arrangement of the kind,although not common?