Question 1

Which of the following statements is true about Small Business Administration (SBA)?

Accepted Answer

A)  It is the most comprehensive source of export opportunities information. 
B)  SBA is a private organization managed by leaders of large corporate. 
C)  The SBA employs trade officers throughout the United States. 
D)  SBA offers help exclusively to small businesses that sell products within U.S. 
A)  It is the most comprehensive source of export opportunities information. 
B)  SBA is a private organization managed by leaders of large corporate. 
C)  The SBA employs trade officers throughout the United States. 
D)  SBA offers help exclusively to small businesses that sell products within U.S.

Question 2

Which of the following statements is true of exporting?

Accepted Answer

A)  It increases the trade deficit that nations have. 
B)  Exporting leads to diseconomies of scope. 
C)  It helps a firm achieve economies of scale 
D)  Exporting is not beneficial to a country's economy. 
A)  It increases the trade deficit that nations have. 
B)  Exporting leads to diseconomies of scope. 
C)  It helps a firm achieve economies of scale 
D)  Exporting is not beneficial to a country's economy.

Question 3

Which of the following statements is true of export credit insurance?

Accepted Answer

A)  Exporter will require more insurance if a letter of credit is used in transactions. 
B)  The FCIA provides coverage against commercial risks and political risks. 
C)  Private associations cannot offer export insurance in the United States. 
D)  Organizations do not receive coverage against political risks of global trade. 
A)  Exporter will require more insurance if a letter of credit is used in transactions. 
B)  The FCIA provides coverage against commercial risks and political risks. 
C)  Private associations cannot offer export insurance in the United States. 
D)  Organizations do not receive coverage against political risks of global trade.

Question 4

In an international transaction involving bank as a third party,the exporter ships the product after _____.

Accepted Answer

A)  the bank receives materials from the importer 
B)  receiving cleared payment through bank 
C)  the importer has paid the bank 
D)  the bank promises to pay on the importer's behalf 
A)  the bank receives materials from the importer 
B)  receiving cleared payment through bank 
C)  the importer has paid the bank 
D)  the bank promises to pay on the importer's behalf

Question 5

Compare and contrast time drafts and sight drafts.

Accepted Answer

Drafts fall into two categories,sight dr

Question 6

A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Accepted Answer

A)  Small firms tend to be more aggressive than larger firms in global trade. 
B)  Governments do not provide much assistance to exporters. 
C)  Growth opportunities are often limited in global markets. 
D)  Exporters often face voluminous paperwork and complex formalities. 
A)  Small firms tend to be more aggressive than larger firms in global trade. 
B)  Governments do not provide much assistance to exporters. 
C)  Growth opportunities are often limited in global markets. 
D)  Exporters often face voluminous paperwork and complex formalities.

Question 8

Hiring an EMC will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

Accepted Answer

A) True 
 B)False

Question 9

Explain why barter is viewed as the most restrictive counter-trade arrangement.

Accepted Answer

The simplest form of countertrade is bar

Question 10

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Accepted Answer

A) True 
 B)False

Question 11

The person or business initiating a draft is known as the _____.

Accepted Answer

A)  beneficiary 
B)  drawee 
C)  maker 
D)  trustee 
A)  beneficiary 
B)  drawee 
C)  maker 
D)  trustee

Question 12

A bill of lading serves as a receipt,a contract,and a document of title.

Accepted Answer

A) True 
 B)False

Question 13

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

Accepted Answer

A)  Counterpurchase 
B)  Barter 
C)  Offset 
D)  Switch trading 
A)  Counterpurchase 
B)  Barter 
C)  Offset 
D)  Switch trading

Question 14

The bill of lading does not serve as a document of title as such.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Which of the following statements is true of reactive firms?

Accepted Answer

A)  Reactive firms consider a variety of markets for selling their products and services. 
B)  They consider exporting only after their domestic market is saturated. 
C)  They systematically scan foreign markets for profitable export opportunities. 
D)  They create excess productive capacity and actively hunt for opportunities in foreign markets. 
A)  Reactive firms consider a variety of markets for selling their products and services. 
B)  They consider exporting only after their domestic market is saturated. 
C)  They systematically scan foreign markets for profitable export opportunities. 
D)  They create excess productive capacity and actively hunt for opportunities in foreign markets.

Question 17

As a receipt,the bill of lading indicates that the carrier _____.

Accepted Answer

A)  provides a written promise of payment before releasing the merchandise 
B)  has obtained the merchandise described on the face of the document 
C)  receives payment from a third-party such as a bank or trading house 
D)  is obligated to provide a transportation service in return for a certain charge 
A)  provides a written promise of payment before releasing the merchandise 
B)  has obtained the merchandise described on the face of the document 
C)  receives payment from a third-party such as a bank or trading house 
D)  is obligated to provide a transportation service in return for a certain charge

Question 18

Barter is viewed as the least restrictive countertrade arrangement.

Accepted Answer

A) True 
 B)False

Question 19

A time draft is payable on presentation to the drawee

Accepted Answer

A) True 
 B)False

Question 20

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

Accepted Answer

A) True 
 B)False

Which of the following statements is true about Small Business Administration (SBA)?

Which of the following statements is true of exporting?

Which of the following statements is true of export credit insurance?

In an international transaction involving bank as a third party,the exporter ships the product after _____.

Compare and contrast time drafts and sight drafts.

A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Hiring an EMC will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

Explain why barter is viewed as the most restrictive counter-trade arrangement.

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

The person or business initiating a draft is known as the _____.

A bill of lading serves as a receipt,a contract,and a document of title.

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

The bill of lading does not serve as a document of title as such.

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?

Which of the following statements is true of reactive firms?

As a receipt,the bill of lading indicates that the carrier _____.

Barter is viewed as the least restrictive countertrade arrangement.

A time draft is payable on presentation to the drawee

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

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 and Finance in the International Business

Filters

Exam 16: Exporting, Importing, and Countertrade

Which of the following statements is true about Small Business Administration (SBA)?

Which of the following statements is true of exporting?

Which of the following statements is true of export credit insurance?

In an international transaction involving bank as a third party,the exporter ships the product after _____.

Compare and contrast time drafts and sight drafts.

A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Hiring an EMC will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

Explain why barter is viewed as the most restrictive counter-trade arrangement.

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

The person or business initiating a draft is known as the _____.

A bill of lading serves as a receipt,a contract,and a document of title.

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

The bill of lading does not serve as a document of title as such.

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?

Which of the following statements is true of reactive firms?

As a receipt,the bill of lading indicates that the carrier _____.

Barter is viewed as the least restrictive countertrade arrangement.

A time draft is payable on presentation to the drawee

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

Globalization

National Differences in Political Economy

Political Economy and Economic Development

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 and Finance in the International Business

Filters