Exam 14: Exporting, Importing, and Countertrade

A firm sells some products to a foreign country.The foreign country pays the firm in dollars but in exchange the firm agrees to spend some of the proceeds from the sale on textiles produced by the foreign country.In which of the following types of countertrade arrangement are the two parties engaged?

Which of the following is a common pitfall that novice exporters come across?

The Foreign Credit Insurance Association (FCIA)is an association of private commercial institutions operating under the guidance of the

Jamal Steel,a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furnace from Shinto Manufacturing,a Japan-based company.Rather than have a letter of credit binding the two parties,both agree on a draft.In international commerce,Shinto Manufacturing,the party initiating the draft is known as the

From an exporter's perspective,why is an offset more attractive than a straight counterpurchase agreement?

Abby Goodwin,the sales manager of Ark Techno Products is wary of using an export management company (EMC)to get the company on the exporting path.Her CEO,John Mosco is very much in favor of hiring an EMC.Which of the following is a drawback of relying on an export management company (EMC)that Abby Goodwin can use to support her contention?

The Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses through its program known as the

John Ciro,the CEO of Ciro Products,a small manufacturer,told his employees that he is part of a group that was going abroad along with representatives of the U.S.Department of Commerce and other U.S.businesspeople to meet with qualified agents,distributors,and customers.Ciro was most likely talking about the

Only large companies have benefited significantly from the moneymaking opportunities of exporting.

Southern Products is a ninety-year old,fourth generation family business located in Pooler,Georgia.The company had concentrated on the U.S.market its entire life by selling its products primarily in the southern United States.Due to increased competition in the domestic market,Southern Products now wants to sell abroad.The company and its top management team is hesitant,however.Firms engaged in international trade deal with people they may have never seen,who live in different countries,who speak different languages,and who abide by different legal systems.These factors result in

Offset refers to the use of a specialized third-party trading house in a countertrade arrangement.

Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in international trade.

While seeking opportunities for profitable exporting,large firms generally tend to be

Which of the following is the most restrictive countertrade arrangement?

Countertrade is most attractive to

The mission of the Foreign Credit Insurance Association is to provide financing aid that will facilitate exports,imports,and the exchange of commodities between the United States and other countries.

Which of the following is true of a letter of credit?

How does a lack of trust affect firms engaged in international trade? How can the problem be solved?

When serving as collateral,the bill of lading

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge,it serves as a