Question 1

Exporters usually issue a letter of credit to importers in international transactions.

Accepted Answer

A) True 
 B)False

Question 2

The Export-Import Bank _____.

Accepted Answer

A)  is an international financial institution that provides loans for capital programs 
B)  provides finance to facilitate trade between United States and other countries 
C)  is an independent agency of the United Nations 
D)  focuses on policies that have an impact on the exchange rate and the balance of payments

Question 3

Describe the three purposes of a bill of lading.

Accepted Answer

The answer of Describe the three purposes of a bill...

Question 4

A buyback occurs when a direct exchange of goods or services occur between two parties without a cash transaction.

Accepted Answer

A) True 
 B)False

Question 5

Describe the information sources that are available to American companies to learn about export opportunities?

Accepted Answer

The answer of Describe the information sources that are available...

Question 6

The bank promises to pay on behalf of the importer when a bank is used as third party in international transactions.

Accepted Answer

A) True 
 B)False

Question 7

In the _____ program organized by the U.S.Department of Commerce,department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers.

Accepted Answer

A)  best prospects 
B)  SCORE 
C)  capital assistance 
D)  matchmaker

Question 8

Discuss the importance of the Export-Import Bank,its goals,and its operations.

Accepted Answer

The answer of Discuss the importance of the Export-Import Bank,its...

Question 9

What is the Foreign Credit Insurance Association?

Accepted Answer

The answer of What is the Foreign Credit Insurance Association?...

Question 10

Barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

Accepted Answer

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

Question 12

Discuss the idea of compensation or buybacks as they relate to countertrade.Provide an example of a buyback arrangement.

Accepted Answer

The answer of Discuss the idea of compensation or buybacks...

Question 13

Which of the following statements is true of countertrade?

Accepted Answer

A)  Countertrade reduces the profitability of competing firms and is considered an unethical practice. 
B)  Countertrade is a conventional means to pay exporters. 
C)  Smaller organizations commonly use countertrade in international transactions. 
D)  Countertrade occurs when goods and services are traded for other goods and services.

Question 14

What is the main attraction of countertrade?

Accepted Answer

The answer of What is the main attraction of countertrade?...

Question 15

Discuss the disadvantages of countertrade.

Accepted Answer

The answer of Discuss the disadvantages of countertrade....

Question 16

A _____ is payable on presentation to the drawee.

Accepted Answer

A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit

Question 17

Countertrade denotes a whole range of agreements that involve financial exchanges.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an advantage of countertrade?

Accepted Answer

A)  Countertrade uses instruments such as time draft and sight draft. 
B)  It is an effective way of doing business with developing nations. 
C)  It provides exporters and opportunity to obtain direct revenue. 
D)  Countertrade prevents exchange of unusable or poor-quality goods.

Question 19

An importer obtains a letter of credit from a bank in the exporter's country in a typical international transaction.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a document used to give the title of the products to a bank?

Accepted Answer

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

Exam 16: Exporting, Importing, and Countertrade

Exporters usually issue a letter of credit to importers in international transactions.

The Export-Import Bank _____.

Describe the three purposes of a bill of lading.

A buyback occurs when a direct exchange of goods or services occur between two parties without a cash transaction.

Describe the information sources that are available to American companies to learn about export opportunities?

The bank promises to pay on behalf of the importer when a bank is used as third party in international transactions.

In the _____ program organized by the U.S.Department of Commerce,department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers.

Discuss the importance of the Export-Import Bank,its goals,and its operations.

What is the Foreign Credit Insurance Association?

Barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

Discuss the idea of compensation or buybacks as they relate to countertrade.Provide an example of a buyback arrangement.

Which of the following statements is true of countertrade?

What is the main attraction of countertrade?

Discuss the disadvantages of countertrade.

A _____ is payable on presentation to the drawee.

Countertrade denotes a whole range of agreements that involve financial exchanges.

Which of the following is an advantage of countertrade?

An importer obtains a letter of credit from a bank in the exporter's country in a typical international transaction.

Which of the following is a document used to give the title of the products to a bank?