Exam 16: Exporting, Importing, and Countertrade

_____ denotes a whole range of barter-like agreements and its principle is to trade 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?

Which of the following is a disadvantage of using a letter of credit (L/C)?

Which of the following is a major advantage of using a letter of credit?

In theory,the advantage of EMCs is that they are _____.

_____ is an alternative means of structuring an international sale when conventional means of payment are difficult,costly,or nonexistent.

A _____ is simply an order written by an exporter instructing an importer,or an importer's agent,to pay a specified amount of money at a specified time.

A(n)_____ occurs 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.

A draft used in international transactions _____.

A _____ allows for a delay in payment.

Compare and contrast the export assistance provided to German and Japanese companies with that given to American companies.Discuss the implications of the differences between the countries.

What type of firms are most likely to engage in countertrade? Why?

Firms commonly employ a reputable bank as third party in international transactions.

The bill of lading is a product guarantee issued by the exporter to the importer.

Describe a typical international trade transaction.

A banker's acceptance _____.

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

Japan's great trading houses are called _____.

Nearly every state in the U.S.maintains active trade commissions to promote exports.

Poor understanding of competitive conditions in the foreign market is a common problem facing exporters.