Question 1

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.

Question 2

A _____ is issued to an exporter by a common carrier transporting the merchandise and it 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

Question 3

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 4

The most restrictive countertrade arrangement is _____ because if goods are not exchanged simultaneously,one party ends up financing the other for a period.

Accepted Answer

A)  counterpurchase 
B)  offset 
C)  barter 
D)  switch trading 
E)  buyback

Question 5

The _____ is a government organization that helps potential exporters.It employs 76 district international trade officers and 10 regional international trade officers throughout the United States as well as a 10-person international trade staff in Washington,DC.

Accepted Answer

A)  Federal Trade Commission 
B)  U.S. Commercial Service 
C)  International Trade Administration 
D)  Small Business Administration 
E)  sogo shosha

Question 6

The _____ refers to a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

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

Question 7

The Export-Import Bank provides financing aid to prospective U.S.exporters.

Accepted Answer

A) True 
 B)False

Question 8

_____ has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S.exports.

Accepted Answer

A)  The Department of Commerce 
B)  The World Bank 
C)  Ex-Im Bank 
D)  Bank of New York 
E)  The Small Business Administration

Question 9

Barter is primarily used with trading partners who are not creditworthy or trustworthy.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  It is the simplest countertrade arrangement. 
B)  It gives the exporter greater flexibility to choose the goods that it wishes to purchase. 
C)  It allows the use of a specialized third-party trading house. 
D)  It gives the exporter counterpurchase credits, which can be used to purchase goods from another country. 
E)  It allows direct exchange of goods and/or services between two parties without a cash transaction.

Exam 14: Exporting, Importing, and Countertrade

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

A _____ is issued to an exporter by a common carrier transporting the merchandise and it serves as a receipt,a contract,and a document of title.

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.

The most restrictive countertrade arrangement is _____ because if goods are not exchanged simultaneously,one party ends up financing the other for a period.

The _____ is a government organization that helps potential exporters.It employs 76 district international trade officers and 10 regional international trade officers throughout the United States as well as a 10-person international trade staff in Washington,DC.

The _____ refers to a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

The Export-Import Bank provides financing aid to prospective U.S.exporters.

_____ has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S.exports.

Barter is primarily used with trading partners who are not creditworthy or trustworthy.

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