Exam 14: Exporting, Importing, and Countertrade

Export credit insurance protects an exporter against the possibility of a foreign importer's default on payment when there is a lack of a letter of credit.

Briefly describe the different forms of government-backed assistance that help potential U.S.exporters finance their export programs.

In international commerce,a sight draft allows for a delay in payment.

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

The sogo shosha of Japan

When a time draft is drawn on and accepted by a business firm,it is known as a(n)

What is countertrade? When can it be used?

German and Japanese firms are relatively more information-disadvantaged than U.S.firms.

What is the difference between a sight draft and a time draft?

A type of countertrade where a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them is called

Which of the following is a characteristic of a time draft?

For an importer,which of the following is a disadvantage of using a letter of credit for international transactions?

A range of barterlike agreements by which goods and services are traded for other goods and services when they cannot be traded for money is known as

Financing aid that will facilitate exports,imports,and the exchange of commodities between the United States and other countries is provided by the

Countertrade is most likely to be used when

Delios Trading is exporting for the first time to Japan and has contracted with Abe Imports in Tokyo for an initial order valued at $110,000.Delios Trading wants Abe Imports to secure a document from a Tokyo bank that would indicate that the bank would pay Delios Trading $110,000 upon presentation of specified documents by the exporter.What is the name of the document that Delios Trading is asking for?

An export credit insurance is necessary when the exporter

Once accepted by the drawee,a time draft becomes a(n)

Mary Warner,the sales manager for a medium-sized apparel company,is facing a tremendous challenge in convincing her boss to get the company to export.As she reflected on this challenge,she realized that many medium-sized firms like hers are not proactive in seeking export opportunities because

To cater to the growing demand for luxury cars,Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc.in exchange for 5,000 gallons of oil.Due to a lack of trust,Terabithia decided to make it a one-time-only deal.Which of the following forms of countertrade is the country most likely to use?