Exam 16: Exporting, Importing, and Countertrade

Countertrade is least attractive to large,diverse multinational enterprises.

A sight draft allows for a delay in payment.

Barter is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

The U.S.Department of Commerce organizes trade events that help potential exporters make foreign contacts and explore export opportunities.

A draft is the instrument normally used in international commerce to effect payment.

What are the typical problems that novice exporters face when trying to export?

U.S.organizations can get financing aid from the Export-Import Bank.

A counterpurchase gives exporters more flexibility than an offset.

What is an export management company? What are its advantages and disadvantages?

In a typical international trade transaction,the _____.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Japan's great trading houses are called Samurai houses.

Foreign Credit Insurance Association is a part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

Explain the problem of trust that persists in international business.

Proactive firms do not consider exporting until their domestic market is saturated.

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

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

Time drafts cannot be sold to investors at a discount from its face value.

EMCs are governmental agencies that help the U.S.Department of Commerce to promote export in the United States.