Question 1

One drawback of relying on EMCs is that:

Accepted Answer

A) they are not conversant with the ins and outs of the exporting process. 
B) they have no knowledge of different business mores. 
C) the company can fail to develop its own exporting capabilities. 
D) the company is unable to avoid common pitfalls. 
A) they are not conversant with the ins and outs of the exporting process. 
B) they have no knowledge of different business mores. 
C) the company can fail to develop its own exporting capabilities. 
D) the company is unable to avoid common pitfalls. C

Question 2

Countertrade contracts may involve the exchange of poor-quality goods that the firm cannot dispose of profitably.

Accepted Answer

A) True 
 B)False  True

Question 3

Consider the incidence of countertrade.Where is it most common?

Accepted Answer

Countertrade became popular in the1960s as a way for the Soviet Union and the Communist states of Eastern Europe,whose currencies were generally nonconvertible,to purchase imports.During the1980s,the practice became popular in many developing nations that lacked the foreign exchange to purchase necessary imports.Estimates of the percentage of world trade covered by some sort of countertrade agreement range from highs of 8 and 10 percent by value to lows of around 2 percent.In the tight monetary regime that followed the crisis in 1997,many Asian firms found it very difficult to get access to export credits to finance their own international trade.Thus they turned to the only option available to them-countertrade.

Question 4

Many firms are not proactive simply because of their ignorance of foreign market opportunities.

Accepted Answer

A) True 
 B)False

Question 5

Large revenue and profit opportunities are typically available in foreign markets.

Accepted Answer

A) True 
 B)False

Question 6

A _____ allows for a delay in payment.

Accepted Answer

A) bill of lading 
B) time draft 
C) banker's acceptance 
D) sight draft 
A) bill of lading 
B) time draft 
C) banker's acceptance 
D) sight draft

Question 7

The bill of lading serves all of the following purposes except:

Accepted Answer

A) it is a receipt. 
B) it is a bank note. 
C) it is a contract. 
D) it is a document of title. 
A) it is a receipt. 
B) it is a bank note. 
C) it is a contract. 
D) it is a document of title.

Question 8

The agencies of the U.S.Department of Commerce provide the potential exporter with all of these services except:

Accepted Answer

A) matchmaker programs. 
B) trade events and exhibitions. 
C) best prospects lists. 
D) export subsidies. 
A) matchmaker programs. 
B) trade events and exhibitions. 
C) best prospects lists. 
D) export subsidies.

Question 9

Countertrading is a common solution for nonconvertibility of currency.

Accepted Answer

A) True 
 B)False

Question 10

Describe the process involved in financing imports and exports using a letter of credit.Why has this system developed? What is the advantage of using this system?

Accepted Answer

The letter of credit is at the center of

Question 11

An export management company is an export specialist who acts as the export marketing department or international department for their client firms.

Accepted Answer

A) True 
 B)False

Question 12

_____ involves trading goods and services for other goods and services when they cannot be traded for money.

Accepted Answer

A) Countertrade 
B) Forfeiting 
C) A sight draft 
D) A time draft 
A) Countertrade 
B) Forfeiting 
C) A sight draft 
D) A time draft

Question 13

Compare and contrast counterpurchase agreements and offset arrangements.Why might an exporter prefer an offset to a counterpurchase deal?

Accepted Answer

A counterpurchase agreement is a recipro

Question 14

A "best prospects" list:

Accepted Answer

A) gives the names and addresses of potential distributors in the domestic market. 
B) is provided by the United States and Foreign Commercial Service Agency. 
C) can provide a firm free,customized market research survey on any product. 
D) provides information gathering,technical assistance,and export subsidies. 
A) gives the names and addresses of potential distributors in the domestic market. 
B) is provided by the United States and Foreign Commercial Service Agency. 
C) can provide a firm free,customized market research survey on any product. 
D) provides information gathering,technical assistance,and export subsidies.

Question 15

A shotgun approach to exporting will almost always result in that firm becoming established in any one market.

Accepted Answer

A) True 
 B)False

Question 16

When conventional means of payment are difficult,a firm might turn to countertrade as a means of structuring an international sale.

Accepted Answer

A) True 
 B)False

Question 17

Proactive firms do not consider exporting until their domestic market is saturated and the emergence of excess productive capacity at home forces them to look for growth opportunities in foreign markets.

Accepted Answer

A) True 
 B)False

Question 18

The mission of the Eximbank is to provide financing aid that will facilitate exports,imports,and the exchange of commodities between the U.S.and other countries.

Accepted Answer

A) True 
 B)False

Question 19

When one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale,and it can fulfill the obligation with any firm in the country to which the sale is being made,it is a(n):

Accepted Answer

A) barter. 
B) counterpurchase. 
C) offset. 
D) buyback. 
A) barter. 
B) counterpurchase. 
C) offset. 
D) buyback.

Question 20

The letter of credit system has evolved to create a less risky environment for international trade.

Accepted Answer

A) True 
 B)False

One drawback of relying on EMCs is that:

Countertrade contracts may involve the exchange of poor-quality goods that the firm cannot dispose of profitably.

Consider the incidence of countertrade.Where is it most common?

Many firms are not proactive simply because of their ignorance of foreign market opportunities.

Large revenue and profit opportunities are typically available in foreign markets.

A _____ allows for a delay in payment.

The bill of lading serves all of the following purposes except:

The agencies of the U.S.Department of Commerce provide the potential exporter with all of these services except:

Countertrading is a common solution for nonconvertibility of currency.

Describe the process involved in financing imports and exports using a letter of credit.Why has this system developed? What is the advantage of using this system?

An export management company is an export specialist who acts as the export marketing department or international department for their client firms.

_____ involves trading goods and services for other goods and services when they cannot be traded for money.

Compare and contrast counterpurchase agreements and offset arrangements.Why might an exporter prefer an offset to a counterpurchase deal?

A "best prospects" list:

A shotgun approach to exporting will almost always result in that firm becoming established in any one market.

When conventional means of payment are difficult,a firm might turn to countertrade as a means of structuring an international sale.

Proactive firms do not consider exporting until their domestic market is saturated and the emergence of excess productive capacity at home forces them to look for growth opportunities in foreign markets.

The mission of the Eximbank is to provide financing aid that will facilitate exports,imports,and the exchange of commodities between the U.S.and other countries.

When one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale,and it can fulfill the obligation with any firm in the country to which the sale is being made,it is a(n):

The letter of credit system has evolved to create a less risky environment for international trade.

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 Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting in the International Business

Financial Management in the International Business

Filters

Exam 15: Exporting,Importing,and Countertrade

One drawback of relying on EMCs is that:

Countertrade contracts may involve the exchange of poor-quality goods that the firm cannot dispose of profitably.

Consider the incidence of countertrade.Where is it most common?

Many firms are not proactive simply because of their ignorance of foreign market opportunities.

Large revenue and profit opportunities are typically available in foreign markets.

A _____ allows for a delay in payment.

The bill of lading serves all of the following purposes except:

The agencies of the U.S.Department of Commerce provide the potential exporter with all of these services except:

Countertrading is a common solution for nonconvertibility of currency.

Describe the process involved in financing imports and exports using a letter of credit.Why has this system developed? What is the advantage of using this system?

An export management company is an export specialist who acts as the export marketing department or international department for their client firms.

_____ involves trading goods and services for other goods and services when they cannot be traded for money.

Compare and contrast counterpurchase agreements and offset arrangements.Why might an exporter prefer an offset to a counterpurchase deal?

A "best prospects" list:

A shotgun approach to exporting will almost always result in that firm becoming established in any one market.

When conventional means of payment are difficult,a firm might turn to countertrade as a means of structuring an international sale.

Proactive firms do not consider exporting until their domestic market is saturated and the emergence of excess productive capacity at home forces them to look for growth opportunities in foreign markets.

The mission of the Eximbank is to provide financing aid that will facilitate exports,imports,and the exchange of commodities between the U.S.and other countries.

When one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale,and it can fulfill the obligation with any firm in the country to which the sale is being made,it is a(n):

The letter of credit system has evolved to create a less risky environment for international trade.

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 Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting in the International Business

Financial Management in the International Business

Filters