Deck 16: Export and Import Management

Question 1

_________________ exporting involves the use of independent U.S. middlemen to market the firm's products overseas.

A) Direct
B) Indirect
C) Parallel
D) Synchronized
E) Dual

Answer 1

B

Question 2

Which of the following countries is the largest participant in database growth?

A) United Kingdom
B) Germany
C) Japan
D) France
E) United States

Answer 2

E

Question 3

For a firm beginning exports for the first time, the first step is to use available ___________________.

A) primary data
B) secondary data
C) tertiary data
D) Internet data
E) intranet data

Answer 3

B

Question 4

When attempting to identify an appropriate overseas market and an appropriate segment, consumer variables should be considered. All of the following
Are consumer variables that should be considered EXCEPT:

A) service quality.
B) purchase frequency.
C) lifestyle.
D) preferences.
E) purchase behavior.

Question 5

Data for grouping along macroeconomic criteria are available from international agencies such as:

A) the International Court of Justice
B) the World Court.
C) the World Bank.
D) the National Geographic Society.
E) the World Economic Council.

Question 6

The identification of an appropriate overseas market and an appropriate segment involves grouping by all of the following criteria EXCEPT:

A) socioeconomic characteristics.
B) political and legal characteristics.
C) consumer variables.
D) service variables.
E) financial conditions.

Question 7

The _________________ acts as the export department to a small exporter or a large producer with small overseas sales.

A) combination export manager (CEM)
B) export merchant
C) export commission house
D) piggyback exporter
E) trading company

Question 8

The CEM stands for:

A) cash export manager.
B) customs export manager.
C) charismatic export manager.
D) combination export manager.
E) collective export manager.

Question 9

Conducting export research on China and Russia would best be done by:

A) doing database research.
B) doing on-line searches.
C) doing field work.
D) using existing government facts and figures.
E) using data supplied by trade missions.

Question 10

As an aid to expanding information about world trade, increasingly, international marketing information is available in the form of ____________________.

A) CD-ROMs
B) electronic encyclopedias
C) electronic databases
D) CIA reports
E) government intelligence reports

Question 11

To get an idea of market segments in a foreign country, the marketer can first group regions within countries across the world by macroeconomic variables.
An illustration of one of these macroeconomic variables would be:

A) level of industrial development.
B) purchase preferences.
C) services sought.
D) lifestyles.
E) purchase frequency.

Question 12

In 2011, exports represented about __________ percent of the U.S. GDP.

A) 5 percent
B) 8 percent
C) 9 percent
D) 10 percent
E) 14 percent

Question 13

_______________ is usually the first entry mode of entry used by many companies.

A) Exporting
B) Importing
C) Licensing
D) Contract manufacturing
E) None of the above

Question 14

When independent U.S. middlemen market a firm's goods in an overseas market, they are called ______________________. They market through their own network
Of foreign distributors and their own sales force.

A) exporters
B) export specialists
C) export representatives
D) distribution specialists
E) parallel exporters

Question 15

The Japanese trading companies are known as:

A) keiretsus
B) chaebols
C) sogonets
D) sogoshoshas
E) akimonos

Question 16

The easiest product to sell abroad with respect to logistics is a(n) _____________ product.

A) differentiated
B) semi-standardized
C) clustered
D) gray market
E) standardized

Question 17

In 2011, an estimated _______________ American jobs depended on international trade and export expansion.

A) 1 million
B) 8 million
C) 10 million
D) 15 million
E) 20 million

Question 18

When attempting to identify an appropriate overseas market and an appropriate segment, socioeconomic variables should be considered. All of the following
Are socioeconomic variables that should be considered EXCEPT:

A) demographics.
B) economic.
C) geographic.
D) econometrics.
E) climatic characteristics.

Question 19

___________________ is the most popular way for many companies to become international.

A) Exporting
B) Importing
C) Licensing
D) Contract manufacturing
E) None of the above

Question 20

Approximately how many databases (that can be used to help with international trade) are available online in the world?

A) 1,000
B) 3,000
C) 4,000
D) 5,000
E) 6,000

Question 21

A(n) ___________________ refers to the practice where U.S. firms that have an established export department assume, under a cooperative agreement, the
Responsibility of exporting the products of other U.S. companies.

A) combination export manager (CEM)
B) export broker
C) export commission house
D) piggyback exporter
E) trading company

Question 22

In order to expand their exporting activities, many Japanese firms rely on giant general trading companies known as _________________________.

A) keiretsus
B) chaebols
C) sogonets
D) sogoshoshas
E) akimonos

Question 23

_________________ exporting occurs when a manufacturer or exporter sells directly to an importer or buyer located in a foreign market.

A) Direct
B) Indirect
C) Parallel
D) Synchronized
E) Dual

Question 24

___________________ are large, foreign organizations engaged in exporting and importing. They buy on their own account and export the goods to their home
Country.

A) Combination export manager (CEM)
B) Export broker
C) Export commission house
D) Piggyback exporter
E) Trading companies

Question 25

When the exporter quotes a price for the goods, including charges for delivery of the goods alongside a vessel at a port (the seller covers all costs of unloading and
Wharfage plus loading the goods on the vessel and the buyer covers all other charges
To get the goods to the buyer), this form of terms of shipment is called:

A) ex-works.
B) free alongside ship (FAS).
C) free on board (FOB).
D) cost and freight (CFR).
E) Cost, Insurance, and Freight (CIF).

Question 26

All exports from the United States (except to Canada and U.S. territories) require a(n) _____________________.

A) letter of credit.
B) letter of ownership.
C) letter for transportation permission.
D) export license.
E) social security number.

Question 27

With respect to direct exporting, the primary difference between a foreign sales subsidiary and a foreign sales branch is that the foreign sales branch:

A) is larger.
B) is smaller.
C) is not a separate legal entity.
D) uses home country managers.
E) does not pay taxes.

Question 28

A(n) _________________________ is a contract between the exporter and the shipper indicating that the shipper has accepted responsibility for the goods and
Will provide transportation in return for payment.

A) bill of disclosure
B) term of sale
C) payment statement
D) transportation invoice
E) bill of lading

Question 29

The _____________________ is someone who brings together an overseas buyer and a U.S. manufacturer for the purpose of an export sale and earns a commission
For establishing a contact that results in a sale.

A) combination export manager (CEM)
B) export broker
C) export commission house
D) piggyback exporter
E) trading company

Question 30

A(n) ____________________ places orders on behalf of its foreign clients with U.S. manufacturers and acts as a finder for its client to get the best buy.

A) combination export manager (CEM)
B) export broker
C) export commission house
D) piggyback exporter
E) trading company

Question 31

The following characteristics (high set-up costs, higher credit risks, and higher customer loyalty) apply to which of the following forms of exporting?

A) direct
B) indirect
C) parallel
D) synchronized
E) dual

Question 32

INCOTERMS 2000 which went into effect from January 1, 2000 and is an acronym for ____________________________, are the internationally accepted standard
Definitions for the terms of sale by the International Chamber of Commerce.

A) Industrial Commercial Terms
B) Insurance Commercial Terms
C) Irrevocable Commercial Terms
D) International Commercial Terms
E) none of the above

Question 33

A(n) _______________________ is a bill for the goods stating basic information about the transaction, including a description of the merchandise, total cost of the
Goods sold, addresses of the buyer and seller, and delivery and payment.

A) bill of disclosure
B) term of sale
C) payment statement
D) commercial invoice
E) bill of lading

Question 34

In the U.S., ______________________ allows exporters to file export information at no cost over the Internet.

A) Auxiliary Export System
B) Amended Export System
C) Automated Export System
D) Alliance Export System
E) none of the above

Question 35

All of the following are possible payment terms for goods exported to another nation EXCEPT:

A) advance payment
B) third party draft.
C) confirmed irrevocable letter of credit.
D) unconfirmed irrevocable letter of credit
E) open account

Question 36

The _________________ buys and sells on their own accounts and assumes all the responsibilities of exporting a product. Manufacturers do not control sales activities.

A) combination export manager (CEM)
B) export merchant
C) export commission house
D) piggyback exporter
E) trading company

Question 37

Which of the following is an example of a large trading company?

A) IBM.
B) General Motors.
C) Mitsui.
D) Volvo.
E) Wal-Mart.

Question 38

When the exporter quotes a price for the goods, including charges for delivery of the goods alongside a vessel at a port (the seller covers all costs of unloading and
Wharfage at the shipment port and the buyer covers all other charges to get the goods
To the buyer), this form of terms of shipment is called:

A) ex-works.
B) free alongside ship (FAS).
C) free on board (FOB).
D) cost and freight (CFR).
E) Cost, Insurance, and Freight (CIF).

Question 39

The second pillar of the export transaction is the logistics of the export transaction. Included in this transaction are all of the following EXCEPT:

A) a bill of lading.
B) the terms of sale.
C) the payment.
D) a dispute mechanism.
E) monitoring of the shipment and delivery of the goods.

Question 40

All of the following are common types of export representatives in the United States EXCEPT:

A) combination export manager (CEM).
B) export merchant.
C) export commission house.
D) export consortium.
E) the trading company.

Question 41

A(n) ________________________ is a payment form where a draft is so drawn as to be payable on presentation to the drawee (usually the buyer).

A) cash with order
B) third party draft
C) confirmed irrevocable letter of credit
D) sight draft
E) time draft

Question 42

The terms of payment between the exporter and importer are a matter of negotiation and depend on a variety of factors. All of the following might be on that list of
Factors EXCEPT:

A) the buyer's credit standing.
B) the seller's reputation.
C) the amount of the sale transaction.
D) the risks associated with the type of merchandise to be shipped.
E) the usual practice in the trade.

Question 43

A(n) __________________ is a payment form where a shipment is held by the importer until the merchandise has been sold, at which time payment is made to the
Exporter.

A) cash with order
B) confirmed irrevocable letter of credit
C) sight draft
D) time draft
E) consignment

Question 44

With respect to shipments entering the United States, a(n) __________ is a guarantee by someone that the duties and any potential penalties will be paid to the customs
Of the importing country.

A) line of credit
B) transfer
C) bond
D) permit
E) tariff

Question 45

Ex-Im Bank has two major programs in place which include:

A) Project Finance Division and Working Capital Program.
B) Project Finance Division and Working Capital Business Program.
C) Project Finance Division and Working Capital Export Program.
D) Project Finance Division and Working Capital Guarantee Program.
E) Project Finance Division and Working Capital Infrastructure Program.

Question 46

The main emphasis of the Ex-Im Bank's lending practices today is in the area of:

A) loans to Japan.
B) loans to Taiwan.
C) loans to Mexico.
D) loans for prior bankrupt countries.
E) project finance (such as infrastructure projects---roads, dams, etc.).

Question 47

The Ex-Im Bank is described as being a:

A) bank that lends exclusively to importers.
B) new name for the old "World Bank."
C) federally supported bank whose mission is to thwart communism by making loans to anti-communist nations and exporters.
D) federally supported bank whose mission is to support exporters with necessary credit.
E) bank which is not in existence yet. The concept still awaits Congressional approval.

Question 48

The Japan External Trade Organization (JETRO) which helps foreign businesses to export to Japan is affiliated with Japan's _____________________________.

A) Ministry of Business, Trade, and Industry
B) Ministry of Economy, Trade, and Industry
C) Ministry of Economy, Trade, and Technology
D) Ministry of Economy, Trade, and Logistics
E) Ministry of Economy, Trade, and Agriculture

Question 49

A shipment that is held by the importer until the merchandise has been sold is called:

A) advance payment.
B) confirmed irrevocable letter of credit.
C) unconfirmed irrevocable letter of credit.
D) open account.
E) consignment.

Question 50

A(n) _______________________ is a payment form where a cash payment occurs when the order is placed.

A) cash with order
B) confirmed irrevocable letter of credit
C) sight draft
D) time draft
E) consignment

Question 51

_______________ risk is the risk that the importer will not pay or fail to pay on the agreed terms.

A) Credit
B) Exchange
C) Transfer
D) Importer
E) Exporter

Question 52

Merchandise arriving from Canada and Mexico, trade fair goods, and perishable goods and shipments assigned to the U.S. government almost always utilize the
____________________ to enable fast delivery after arrival.

A) quick release form
B) quick permit form
C) Customs form 7200
D) Special Permit for Immediate Delivery
E) block and load release form

Question 53

___________________ risk refers to the chances that payment will not be made due to the importer's inability to obtain U.S. dollars and transfer them to the
Exporter.

A) Credit
B) Exchange
C) Transfer
D) Importer
E) Exporter

Question 54

Ex-Im Bank is not an aid or development agency, but a_____________________ corporation.

A) state
B) domestic
C) regional
D) private
E) government

Question 55

Since most world trade is done in dollars, the U.S. importer does not usually need to _____________ foreign exchange transactions.

A) capitalize
B) hedge
C) capitate
D) survey
E) monitor

Question 56

___________________ risk exists when the sale is in the importer's currency and that currency depreciates in terms of the dollar, leaving the exporter with a lesser
Number of dollars.

A) Foreign credit
B) Foreign exchange
C) Foreign transfer
D) Foreign payment
E) Foreign delivery

Question 57

One of the biggest advantages the United States has in importing is that U.S. companies can:

A) order unlimited amounts of goods.
B) always sell what they order abroad.
C) be assured that the government will support their trade efforts.
D) pay in U.S. dollars--a currency accepted everywhere.
E) always turn a profit with the goods they buy because of market demand.

Question 58

When a shipment reaches the United States, the consignee (usually the importer) will file ______________ with the port director at the port of entry.

A) visas
B) product passports
C) bills of landing
D) bills of shipping
E) entry documents

Question 59

A confirmed irrevocable letter of credit is issued by the ____________ bank and confirmed by a bank usually in the ____________ country.

A) importer's, exporter's
B) exporter's, importer's
C) investment, exporter's
D) government's, exporter's
E) none of the above

Question 60

All of the following are activities that an importer would normally go through in order to complete the purchase process. Which of the items listed below does not
Logically fit?

A) Find a bank in the exporter's country to handle financial transactions.
B) Establish a letter of credit to smooth the process.
C) Decide on the mode of transfer of goods.
D) Always use an export or import middleman to expedite the process.
E) Check compliance with national laws.

Question 61

A standardized product is not the easiest to sell abroad.

Question 62

The World Bank publishes the World Development Report.

Question 63

_________________ exporting involves using independent U.S. middlemen to
market the firm's products overseas.

Question 64

The combination export manager (CEM) acts as the import department to a small
importer.

Question 65

Exports represent about 4 percent of the U.S. gross domestic product (GDP).

Question 66

Piggyback exporting refers to the practice where U.S. firms that have an established
export department assume, under a cooperative agreement, the responsibility of
exporting the products of other U.S. companies.

Question 67

When import duties are paid, the _________________ duty is a combination of a specified amount of the per unit weight or other quantity of the merchandise plus
An ad valorem rate.

A) bonded
B) corkage
C) compound
D) nontariff
E) import

Question 68

________________ channels refer to the legal export/import transaction involving genuine products into a country by intermediaries other than the authorized
Distributors.

A) Black market
B) Gray market
C) Positioned
D) Zoned
E) Red zone

Question 69

Exporting is the first mode of foreign entry used by many companies.

Question 70

In the U.S., the Automated Export System (AES) enables exporters to file import
information at no cost over the Internet.

Question 71

When import duties are paid, the _________________ duty is a percentage of the value of the merchandise.

A) ad valorem
B) specific
C) compound
D) nontariff
E) import

Question 72

Another name for gray market channels is _________________.

A) positioned imports
B) concentric marketing
C) strategic entry imports
D) parallel imports
E) sidebar hedging

Question 73

Brand reputation is a critical element in _________________ products.

A) gray
B) black
C) furniture
D) smuggled
E) none of the above

Question 74

For a firm beginning exports for the first time, the first step is to use available primary data.

Question 75

______________________ duties are duties that are assessed to counter the effects of subsidies provided by foreign governments to goods that are exported
To the United States.

A) Ad valorem
B) Specific
C) Compound
D) Countervailing
E) Antidumping

Question 76

When import duties are paid, the _________________ duty is a specified amount of the per unit weight or other quantity of the merchandise.

A) ad valorem
B) specific
C) compound
D) nontariff
E) import

Question 77

All of the following conditions lend to the development of gray markets EXCEPT:

A) currency fluctuations.
B) differences in market demand.
C) legal differences.
D) opportunistic behavior.
E) foreign trade outlets.

Question 78

Exports from the United States do not require an export license.

Question 79

If goods enter a ________________, they can be re-exported anytime (up to five years) without payment of duty.

A) holding pen
B) corporate security zone
C) bonded warehouse
D) wharf zone
E) parallel import zone

Question 80

_________________ duties are assessed on imported merchandise sold to importers in the United States at a price that is less than the fair market value.

A) Ad valorem
B) Specific
C) Compound
D) Nontariff
E) Antidumping