Question 1

A _____ is issued to the exporter by the 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

Question 2

It often makes sense to enter a foreign market on a large scale to reduce the costs of any subsequent failure.

Accepted Answer

A) True 
 B)False

Question 3

Once accepted,a time draft becomes a(n):

Accepted Answer

A) asset for the drawee. 
B) in-transit bill. 
C) promise to pay by the accepting party. 
D) bill of lading.

Question 4

The United Nations has calculated that the time involved in preparing documentation,along with the costs of common errors in paperwork,often amounts to _____ percent of the final value of goods exported.

Accepted Answer

A) 75 
B) 25 
C) 10 
D) 50

Question 5

Unlike their German and Japanese competitors,many U.S.firms are relatively blind when they seek export opportunities;they are information disadvantaged.

Accepted Answer

A) True 
 B)False

Question 6

A program in which department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers is called the:

Accepted Answer

A) matchmaker program. 
B) best prospects program. 
C) SCORE program. 
D) STAR program.

Question 7

Which of the following is an advantage of the letter of credit system to the exporter?

Accepted Answer

A) Payment for merchandise only after delivery is made 
B) Facilitates obtaining of preexport financing 
C) Higher price is obtained for goods 
D) Lower shipping costs are incurred

Question 8

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

Accepted Answer

A) trade acceptance. 
B) in-transit bill. 
C) banker's acceptance. 
D) bill of lading.

Question 9

Saudi Arabia agreed to buy ten 747 jets from Boeing with payment in crude oil,discounted at 10 percent below posted world oil prices.This is an example of:

Accepted Answer

A) a letter of credit. 
B) a time draft. 
C) countertrade. 
D) buyback.

Question 10

The firm that enters many markets at once runs the risk of spreading its limited management resources too thin.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

The answer of What is the difference between a sight...

Question 12

Which of the following is one of the ways in which the U.S.Department of Commerce helps potential exporters?

Accepted Answer

A) It oversees about 850 volunteers with international trade experience. 
B) It has assembled a "comparison shopping service" for 14 countries that are major markets for U.S.exports. 
C) It coordinates a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. 
D) It provides export specialists who act as the export marketing department or international department for their client firms.

Question 13

What is countertrade? Give an example of when it can be used.

Accepted Answer

The answer of What is countertrade? Give an example of...

Question 14

Explain how the Small Business Administration (SBA)can help potential exporters.D.C.Through its Service Corps of Retired Executives (SCORE)program,the SBA oversees some 850 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 answer of Explain how the Small Business Administration (SBA)can...

Question 15

Which of the following is NOT a distinct countertrade arrangement?

Accepted Answer

A) Barter 
B) Counterpurchase 
C) Switch trading 
D) Merger

Question 16

A U.S.firm concludes a counterpurchase agreement with Poland for which it receives some number of counterpurchase credits for purchasing Polish goods.The U.S.firm does not want any Polish goods,however,so it sells the credits to a third-party trading house at a discount.The trading house finds a firm that can use the credits and sells them at a profit.This is an example of

Accepted Answer

A) barter. 
B) switch trading. 
C) an offset. 
D) a buyback.

Question 17

Exporters clearly prefer to get a _____ from importers.

Accepted Answer

A) promissory note 
B) credit insurance 
C) letter of credit 
D) bill of lading

Question 18

Large firms generally tend to be _____ about seeking opportunities for profitable exporting,whereas medium-sized and small firms are _____.

Accepted Answer

A) passive;aggressive 
B) risk averse;risk takers 
C) cautious;adventurous 
D) proactive;reactive

Question 19

The Ex-Im Bank provides _____ for the repayment of medium and long-term loans U.S.commercial banks make to foreign borrowers for purchasing U.S.exports.This makes the commercial banks more willing to lend cash to foreign enterprises.

Accepted Answer

A) export credit insurance 
B) direct lending option 
C) bank guarantee 
D) interest

Question 20

The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment.The exporter can insure against this possibility by:

Accepted Answer

A) approaching the World Bank. 
B) buying export credit insurance. 
C) obtaining preexport financing. 
D) filing a suit against the importer in court.

Exam 13: Exporting,Importing,and Countertrade

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

It often makes sense to enter a foreign market on a large scale to reduce the costs of any subsequent failure.

Once accepted,a time draft becomes a(n) :

The United Nations has calculated that the time involved in preparing documentation,along with the costs of common errors in paperwork,often amounts to _____ percent of the final value of goods exported.

Unlike their German and Japanese competitors,many U.S.firms are relatively blind when they seek export opportunities;they are information disadvantaged.

A program in which department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers is called the:

Which of the following is an advantage of the letter of credit system to the exporter?

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

Saudi Arabia agreed to buy ten 747 jets from Boeing with payment in crude oil,discounted at 10 percent below posted world oil prices.This is an example of:

The firm that enters many markets at once runs the risk of spreading its limited management resources too thin.

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

Which of the following is one of the ways in which the U.S.Department of Commerce helps potential exporters?

What is countertrade? Give an example of when it can be used.

Which of the following is NOT a distinct countertrade arrangement?

Exporters clearly prefer to get a _____ from importers.

Large firms generally tend to be _ about seeking opportunities for profitable exporting,whereas medium-sized and small firms are _.

The Ex-Im Bank provides _____ for the repayment of medium and long-term loans U.S.commercial banks make to foreign borrowers for purchasing U.S.exports.This makes the commercial banks more willing to lend cash to foreign enterprises.

The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment.The exporter can insure against this possibility by: