Question 1

The letter of credit is issued by the bank at the request of an exporter.

Accepted Answer

A) True 
 B)False

Question 2

The Eximbank is a part of the WTO's efforts to facilitate trade between nations.

Accepted Answer

A) True 
 B)False

Question 3

A firm can increase the probability of exporting successfully by taking which of these steps?

Accepted Answer

A) Avoiding hiring EMCs to lower head counts 
B) Hiring only home country personnel to build commitment 
C) Entering on a small scale 
D) Waiting for the export opportunities to come 
A) Avoiding hiring EMCs to lower head counts 
B) Hiring only home country personnel to build commitment 
C) Entering on a small scale 
D) Waiting for the export opportunities to come

Question 4

International transactions are usually settled using drafts.

Accepted Answer

A) True 
 B)False

Question 5

Switch trading is the direct exchange of goods and/or services between parties without a cash transaction.

Accepted Answer

A) True 
 B)False

Question 6

An offset agreement occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Accepted Answer

A) True 
 B)False

Question 7

What is the simplest form of countertrade? Why are firms reluctant to engage in this type of arrangement?

Accepted Answer

The simplest form of countertrade is bar

Question 8

Discuss the Exim Bank,its goals,and its operations.

Accepted Answer

The Exim Bank,otherwise known as the Exp

Question 9

Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters?

Accepted Answer

A) EMC 
B) SBA 
C) ELAN 
D) SCORE 
A) EMC 
B) SBA 
C) ELAN 
D) SCORE

Question 10

Explain what is meant by countertrade.What is the purpose of countertrade?

Accepted Answer

When conventional means of payment are d

Question 11

One of the reasons for the lack of trust between firms engaged in international trade is due to the problems of using an underdeveloped international legal system to enforce contractual obligations.

Accepted Answer

A) True 
 B)False

Question 12

Compare and contrast time drafts and sight drafts.

Accepted Answer

Drafts,also known as bills of exchange,a

Question 13

Unlike their German and Japanese competitors,U.S.firms are _____ when they see export opportunities.

Accepted Answer

A) information-disadvantaged 
B) money-strapped 
C) regulation-bound 
D) much better prepared 
A) information-disadvantaged 
B) money-strapped 
C) regulation-bound 
D) much better prepared

Question 14

Describe the three purposes of a bill of lading.

Accepted Answer

The bill of lading is an important docum

Question 15

Which of the following is also referred to as a "bill of exchange"?

Accepted Answer

A) A letter of credit 
B) A bill of lading 
C) A draft 
D) A promissory note 
A) A letter of credit 
B) A bill of lading 
C) A draft 
D) A promissory note

Question 16

Through its _____ program,the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Accepted Answer

A) EMC 
B) SCORE 
C) ELAN 
D) International Trade Administration 
A) EMC 
B) SCORE 
C) ELAN 
D) International Trade Administration

Question 17

American exporters can minimize their risk by purchasing insurance from the Foreign Credit Insurance Association.

Accepted Answer

A) True 
 B)False

Question 18

A bill of lading:

Accepted Answer

A) is the same as a letter of credit. 
B) is received from the importer prior to product shipment. 
C) is a financial note issued by a bank. 
D) gives title to the goods. 
A) is the same as a letter of credit. 
B) is received from the importer prior to product shipment. 
C) is a financial note issued by a bank. 
D) gives title to the goods.

Question 19

What is the drawback of using a letter of credit system?

Accepted Answer

A) The exporter is no longer entitled to preexport financing 
B) The importer no longer trusts the exporter 
C) The exporter is not guaranteed any payment 
D) The importer must pay the bank a fee for the letter of credit 
A) The exporter is no longer entitled to preexport financing 
B) The importer no longer trusts the exporter 
C) The exporter is not guaranteed any payment 
D) The importer must pay the bank a fee for the letter of credit

Question 20

What is the biggest advantage of using a letter of credit system?

Accepted Answer

A) The exporter is guaranteed pre-export financing. 
B) It allows the importer time to resell the merchandise before requiring payment. 
C) The trust is established,for the importer and exporter,because of a reputable bank. 
D) It guarantees the importer extra funds for other purposes. 
A) The exporter is guaranteed pre-export financing. 
B) It allows the importer time to resell the merchandise before requiring payment. 
C) The trust is established,for the importer and exporter,because of a reputable bank. 
D) It guarantees the importer extra funds for other purposes.

The letter of credit is issued by the bank at the request of an exporter.

The Eximbank is a part of the WTO's efforts to facilitate trade between nations.

A firm can increase the probability of exporting successfully by taking which of these steps?

International transactions are usually settled using drafts.

Switch trading is the direct exchange of goods and/or services between parties without a cash transaction.

An offset agreement occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

What is the simplest form of countertrade? Why are firms reluctant to engage in this type of arrangement?

Discuss the Exim Bank,its goals,and its operations.

Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters?

Explain what is meant by countertrade.What is the purpose of countertrade?

One of the reasons for the lack of trust between firms engaged in international trade is due to the problems of using an underdeveloped international legal system to enforce contractual obligations.

Compare and contrast time drafts and sight drafts.

Unlike their German and Japanese competitors,U.S.firms are _____ when they see export opportunities.

Describe the three purposes of a bill of lading.

Which of the following is also referred to as a "bill of exchange"?

Through its _____ program,the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

American exporters can minimize their risk by purchasing insurance from the Foreign Credit Insurance Association.

A bill of lading:

What is the drawback of using a letter of credit system?

What is the biggest advantage of using a letter of credit system?

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

The letter of credit is issued by the bank at the request of an exporter.

The Eximbank is a part of the WTO's efforts to facilitate trade between nations.

A firm can increase the probability of exporting successfully by taking which of these steps?

International transactions are usually settled using drafts.

Switch trading is the direct exchange of goods and/or services between parties without a cash transaction.

An offset agreement occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

What is the simplest form of countertrade? Why are firms reluctant to engage in this type of arrangement?

Discuss the Exim Bank,its goals,and its operations.

Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters?

Explain what is meant by countertrade.What is the purpose of countertrade?

One of the reasons for the lack of trust between firms engaged in international trade is due to the problems of using an underdeveloped international legal system to enforce contractual obligations.

Compare and contrast time drafts and sight drafts.

Unlike their German and Japanese competitors,U.S.firms are _____ when they see export opportunities.

Describe the three purposes of a bill of lading.

Which of the following is also referred to as a "bill of exchange"?

Through its _____ program,the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

American exporters can minimize their risk by purchasing insurance from the Foreign Credit Insurance Association.

A bill of lading:

What is the drawback of using a letter of credit system?

What is the biggest advantage of using a letter of credit system?

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