Question 1

Once in export markets, new exporters tend to maintain their focus on them, despite what is happening in the home market.

Accepted Answer

A) True 
 B)False

Question 2

A confirmed letter of credit guarantees payment to the seller.

Accepted Answer

A) True 
 B)False

Question 3

CIBERs are international business research and education efforts located at U.S. universities.

Accepted Answer

A) True 
 B)False

Question 4

The premiums charged by marine insurance companies on an international transaction depend on:

Accepted Answer

A)  the age of the ship. 
B)  whether the goods are stowed on deck or under deck. 
C)  the volume of business. 
D)  how the good are packed. 
E)  all of the above.

Question 5

Often small exporters don't consider the use of an export management company when they should.

Accepted Answer

A) True 
 B)False

Question 6

Licensing and joint venture agreements cannot be useful business forms for new exporters.

Accepted Answer

A) True 
 B)False

Question 7

Market Access and Compliance (MAC) specialists seek to open foreign markets to American products. MAC specialists do not do the following:

Accepted Answer

A)  develop strategies to overcome obstacles faced by U.S. business in foreign countries and regions. 
B)  monitor foreign country compliance with trade agreements. 
C)  monitor exchange rate movement. 
D)  all of the above. 
E)  A and B.

Question 8

The kinds of marine insurance policies include:

Accepted Answer

A)  basic named perils. 
B)  broad named perils. 
C)  partial risk. 
D)  all risk. 
E)  A, B, and D.

Question 9

When nonexporting firms are asked why they do not export, they generally list the following as problems:

Accepted Answer

A)  locating foreign markets. 
B)  payment and finance procedures. 
C)  As stated directly in the text. 
D)  lack of foreign language expertise. 
E)  A, B, and C.

Question 10

When engaging in international business, banks are concerned with the merchandise, not the documents.

Accepted Answer

A) True 
 B)False

Question 11

The export marketing plan does not include product characteristics, promotional plans, and details on arrangements with foreign representatives.

Accepted Answer

A) True 
 B)False

Question 12

One of the most common mistakes made by new exporters is not getting advice.

Accepted Answer

A) True 
 B)False

Question 13

Often new exporters think that they won't have to localize their approach, that a marketing technique or distribution system that works in one country will work in another.

Accepted Answer

A) True 
 B)False

Question 14

Straight bills of lading are negotiable documents.

Accepted Answer

A) True 
 B)False

Question 15

By accepting a time draft, the buyer assumes the responsibility for making payment at maturity of the draft.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the most risky for an exporter?

Accepted Answer

A)  Open account 
B)  Irrevocable letter of credit 
C)  Bank collection time draft 
D)  Cash in advance 
E)  Revocable letter of credit

Question 17

Generally, trade missions consist of 5 to 12 business professors.

Accepted Answer

A) True 
 B)False

Question 18

The FTA's Market Access and Compliance Department monitors foreign country compliance with trade agreements.

Accepted Answer

A) True 
 B)False

Question 19

A shipper's export declaration (SED) includes:

Accepted Answer

A)  names and addresses of the shipper and consignee. 
B)  U.S. port of exit and foreign port of unloading. 
C)  export license number and bill-of-lading number. 
D)  description and value of the goods. 
E)  all of the above.

Question 20

Foreign trade zones are also called:

Accepted Answer

A)  free trade zones. 
B)  transit zones. 
C)  free perimeters. 
D)  export processing zones. 
E)  all of the above.

Exam 14: Export and Import Practices

Once in export markets, new exporters tend to maintain their focus on them, despite what is happening in the home market.

A confirmed letter of credit guarantees payment to the seller.

CIBERs are international business research and education efforts located at U.S. universities.

The premiums charged by marine insurance companies on an international transaction depend on:

Often small exporters don't consider the use of an export management company when they should.

Licensing and joint venture agreements cannot be useful business forms for new exporters.

Market Access and Compliance (MAC) specialists seek to open foreign markets to American products. MAC specialists do not do the following:

The kinds of marine insurance policies include:

When nonexporting firms are asked why they do not export, they generally list the following as problems:

When engaging in international business, banks are concerned with the merchandise, not the documents.

The export marketing plan does not include product characteristics, promotional plans, and details on arrangements with foreign representatives.

One of the most common mistakes made by new exporters is not getting advice.

Often new exporters think that they won't have to localize their approach, that a marketing technique or distribution system that works in one country will work in another.

Straight bills of lading are negotiable documents.

By accepting a time draft, the buyer assumes the responsibility for making payment at maturity of the draft.

Which of the following is the most risky for an exporter?

Generally, trade missions consist of 5 to 12 business professors.

The FTA's Market Access and Compliance Department monitors foreign country compliance with trade agreements.

A shipper's export declaration (SED) includes:

Foreign trade zones are also called: