Question 1

For U.S.firms,the most comprehensive source of information on export opportunities is the U.S.Department of Commerce.

Accepted Answer

A) True 
 B)False

Question 2

Countertrade's main attraction is that it can give a firm a way to finance an export deal when other means are not available.

Accepted Answer

A) True 
 B)False

Question 3

Export management companies (EMCs)start exporting operations for a firm with the understanding that the firm will take over operations after they are well established.

Accepted Answer

A) True 
 B)False

Question 4

Japan's great trading houses are referred to as

Accepted Answer

A) kaizen. 
B) sogo shosha. 
C) zaibatsu. 
D) guanxi. 
E) kanban. 
A) kaizen. 
B) sogo shosha. 
C) zaibatsu. 
D) guanxi. 
E) kanban.

Question 5

Which of the following is true of barter as a countertrade arrangement?

Accepted Answer

A) It is a very complex arrangement. 
B) It is primarily used with trading partners who are not creditworthy or trustworthy. 
C) It involves cash transactions. 
D) When goods are exchanged simultaneously,one partner ends up financing the other. 
E) It is the most flexible countertrade arrangement. 
A) It is a very complex arrangement. 
B) It is primarily used with trading partners who are not creditworthy or trustworthy. 
C) It involves cash transactions. 
D) When goods are exchanged simultaneously,one partner ends up financing the other. 
E) It is the most flexible countertrade arrangement.

Question 6

In the modern era,countertrade arose in the 1960s as a way to purchase imports for

Accepted Answer

A) the United States. 
B) the Soviet Union. 
C) Germany. 
D) Japan. 
E) Africa. 
A) the United States. 
B) the Soviet Union. 
C) Germany. 
D) Japan. 
E) Africa.

Question 7

Florida Jetskis,based in Miami,wants to export,but,being a small third generation family business is cautious,particularly with respect to financial risk.The CEO,Armand Millard is contemplating the firm's approach to exporting.Which of the following is a strategic step that you would advise Florida Jetskis to take to increase its probability of exporting successfully?

Accepted Answer

A) avoiding the use of export management companies to contain costs 
B) entering several markets simultaneously to hedge risk 
C) entering a foreign market on a small scale 
D) waiting for export opportunities 
E) avoiding recruitment of local personnel 
A) avoiding the use of export management companies to contain costs 
B) entering several markets simultaneously to hedge risk 
C) entering a foreign market on a small scale 
D) waiting for export opportunities 
E) avoiding recruitment of local personnel

Question 8

In domestic trade transactions,a buyer can often obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay.

Accepted Answer

A) True 
 B)False

Question 9

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

Accepted Answer

A) True 
 B)False

Question 10

Exporting is nearly always a way to increase the revenue and profit base of a company because

Accepted Answer

A) there is little competition in the international market. 
B) foreign governments encourage imports from other countries. 
C) international markets are less complex than their domestic counterparts. 
D) the international market is much larger than the domestic market. 
E) it does not involve wasting resources on paperwork. 
A) there is little competition in the international market. 
B) foreign governments encourage imports from other countries. 
C) international markets are less complex than their domestic counterparts. 
D) the international market is much larger than the domestic market. 
E) it does not involve wasting resources on paperwork.

Question 11

What is the Ex-Im Bank? What is its mission and how does it pursue it?

Accepted Answer

The Export-Import Bank,often referred to

Question 12

Omar Arroyo,an international trade attorney,provides free consultations to small businesses on export-related matters as part of a nationwide group coordinated by the Small Business Association.Omar is a member of the group called the

Accepted Answer

A) TradeNet Export Advisor. 
B) Export Trade Assistance Partnership. 
C) United States Trade Service. 
D) Export Legal Assistance Network. 
E) Ex-Im Network. 
A) TradeNet Export Advisor. 
B) Export Trade Assistance Partnership. 
C) United States Trade Service. 
D) Export Legal Assistance Network. 
E) Ex-Im Network.

Question 13

Which of the following is issued to an exporter by a common carrier transporting the merchandise and serves as a receipt,a contract,and a document of title?

Accepted Answer

A) bill of lading 
B) collateral 
C) draft 
D) letter of credit 
E) bill of exchange 
A) bill of lading 
B) collateral 
C) draft 
D) letter of credit 
E) bill of exchange

Question 14

How does the Small Business Administration (SBA)help potential exporters.D.C.Through its Service Corps of Retired Executives (SCORE)program,the SBA oversees some 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.The SBA also coordinates the Export Legal Assistance Network (ELAN),a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

Accepted Answer

The Small Business Administration (SBA)i

Question 15

Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Accepted Answer

A) True 
 B)False

Question 16

Due to the complexity and diversity of foreign markets,firms sometimes hesitate to seek export opportunities.These firms can best overcome ignorance by

Accepted Answer

A) shortening production runs. 
B) creating revenue. 
C) outsourcing decisions. 
D) collecting information. 
E) lowering unit costs. 
A) shortening production runs. 
B) creating revenue. 
C) outsourcing decisions. 
D) collecting information. 
E) lowering unit costs.

Question 17

Johnson Goods,a U.S.company is exporting to Watanabe Trading,a Japanese importer.The two parties agree on a draft,but Watanabe Trading wants it to be a draft that allows for a delay in payment.Watanabe Trading is asking for a(n)

Accepted Answer

A) sight draft. 
B) time draft. 
C) bill of lading. 
D) counterpurchase. 
E) offset. 
A) sight draft. 
B) time draft. 
C) bill of lading. 
D) counterpurchase. 
E) offset.

Question 18

Which of the following organizations runs the Service Corps of Retired Executives (SCORE)program?

Accepted Answer

A) Foreign Credit Insurance Association 
B) International Trade Administration 
C) Small Business Administration 
D) U.S.Department of Commerce 
E) U.S.Commercial Service 
A) Foreign Credit Insurance Association 
B) International Trade Administration 
C) Small Business Administration 
D) U.S.Department of Commerce 
E) U.S.Commercial Service

Question 19

In international commerce,a person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

Accepted Answer

A) True 
 B)False

Question 20

In the United States,export credit insurance is provided by the

Accepted Answer

A) Export-Import Bank. 
B) Bank of New York. 
C) Foreign Credit Insurance Association. 
D) Federal Deposit Insurance Corporation. 
E) Federal Reserve Bank. 
A) Export-Import Bank. 
B) Bank of New York. 
C) Foreign Credit Insurance Association. 
D) Federal Deposit Insurance Corporation. 
E) Federal Reserve Bank.

For U.S.firms,the most comprehensive source of information on export opportunities is the U.S.Department of Commerce.

Countertrade's main attraction is that it can give a firm a way to finance an export deal when other means are not available.

Export management companies (EMCs)start exporting operations for a firm with the understanding that the firm will take over operations after they are well established.

Japan's great trading houses are referred to as

Which of the following is true of barter as a countertrade arrangement?

In the modern era,countertrade arose in the 1960s as a way to purchase imports for

In domestic trade transactions,a buyer can often obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay.

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

Exporting is nearly always a way to increase the revenue and profit base of a company because

What is the Ex-Im Bank? What is its mission and how does it pursue it?

Omar Arroyo,an international trade attorney,provides free consultations to small businesses on export-related matters as part of a nationwide group coordinated by the Small Business Association.Omar is a member of the group called the

Which of the following is issued to an exporter by a common carrier transporting the merchandise and serves as a receipt,a contract,and a document of title?

Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Due to the complexity and diversity of foreign markets,firms sometimes hesitate to seek export opportunities.These firms can best overcome ignorance by

Johnson Goods,a U.S.company is exporting to Watanabe Trading,a Japanese importer.The two parties agree on a draft,but Watanabe Trading wants it to be a draft that allows for a delay in payment.Watanabe Trading is asking for a(n)

Which of the following organizations runs the Service Corps of Retired Executives (SCORE)program?

In international commerce,a person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

In the United States,export credit insurance is provided by the

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Global Production and Supply Chain Management

Global Marketing and Research and Development

Global Human Resource Management

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Exam 14: Exporting, Importing, and Countertrade

For U.S.firms,the most comprehensive source of information on export opportunities is the U.S.Department of Commerce.

Countertrade's main attraction is that it can give a firm a way to finance an export deal when other means are not available.

Export management companies (EMCs)start exporting operations for a firm with the understanding that the firm will take over operations after they are well established.

Japan's great trading houses are referred to as

Which of the following is true of barter as a countertrade arrangement?

In the modern era,countertrade arose in the 1960s as a way to purchase imports for

In domestic trade transactions,a buyer can often obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay.

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

Exporting is nearly always a way to increase the revenue and profit base of a company because

What is the Ex-Im Bank? What is its mission and how does it pursue it?

Omar Arroyo,an international trade attorney,provides free consultations to small businesses on export-related matters as part of a nationwide group coordinated by the Small Business Association.Omar is a member of the group called the

Which of the following is issued to an exporter by a common carrier transporting the merchandise and serves as a receipt,a contract,and a document of title?

Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Due to the complexity and diversity of foreign markets,firms sometimes hesitate to seek export opportunities.These firms can best overcome ignorance by

Johnson Goods,a U.S.company is exporting to Watanabe Trading,a Japanese importer.The two parties agree on a draft,but Watanabe Trading wants it to be a draft that allows for a delay in payment.Watanabe Trading is asking for a(n)

Which of the following organizations runs the Service Corps of Retired Executives (SCORE)program?

In international commerce,a person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

In the United States,export credit insurance is provided by the

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Global Production and Supply Chain Management

Global Marketing and Research and Development

Global Human Resource Management

Filters