Question 1

Guanxi refers to the:

Accepted Answer

A) connections which are essential for doing business in China. 
B) subcultural groups that exist in China. 
C) dominant cultural group that decides Chinese cultural norms. 
D) cultural differences between Taiwan and China. 
E) department responsible for implementing cultural practices in China.

Question 2

Under a licensing agreement, the multinational firm grants rights on its intangible property to a foreign company for a specified period of time.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements holds true for "countertrade"?

Accepted Answer

A) It refers to a situation where companies are barred from engaging in sales in particular goods and services. 
B) It refers to a situation where companies trade goods and services for other goods and services. 
C) It refers to a situation where companies jointly sell goods and services with their competitors. 
D) It refers to a situation where companies establish their monopoly in the sale of goods and services in a particular sector. 
E) It refers to a situation where companies indulge in business espionage to counter the trade of their competitors.

Question 4

Which of the following statements holds true for the sight draft?

Accepted Answer

A) The sight draft is paid on the receipt of the goods by the importer. 
B) The sight draft is payable typically 30, 60, 90, or 120 days in the future as specified by the draft. 
C) The sight draft is paid on receipt of the draft (when it is "seen"). 
D) The sight draft is paid in advance immediately after the order is made to the exporter and before the export of the ordered goods. 
E) The sight draft is paid after a period of exactly one year after the delivery has been made to the importer.

Question 5

Governments use bills of lading to determine the value of the goods for customs-valuation purposes.

Accepted Answer

A) True 
 B)False

Question 6

_____ refers to a contractual, strategic partnership between two or more separate business entities to pursue a business opportunity together.

Accepted Answer

A) Joint venture 
B) Licensing 
C) Leasing 
D) Acquisition 
E) Franchising

Question 7

A carrier refers to the entity which:

Accepted Answer

A) handles the physical transportation of goods across geographical distances. 
B) buys goods from another country and transfers into one's home country. 
C) sends goods out of one's own country to another country. 
D) finances the production of goods in a foreign country. 
E) designs and develops goods in one's own country.

Question 8

SBA's _____ loan program funds small businesses to pay for any activity that will increase exports.

Accepted Answer

The answer of SBA's _____ loan program funds small businesses...

Question 9

_____ refers to the granting of permission by one party to another party to use intellectual property rights, such as trademarks, patents, brand names, or technology, to a foreign company under defined conditions along with providing a bundle of services and products.

Accepted Answer

A) Joint venture 
B) Licensing 
C) Leasing 
D) Acquisition 
E) Franchising

Question 10

What are the investment modes of entry into a foreign country?

Accepted Answer

The answer of What are the investment modes of entry...

Question 11

_____ refers to the measure of the impact that activities like transportation and manufacturing have on the environment, especially on climate change.

Accepted Answer

A) Depensation 
B) Coriolis Effect 
C) Baldwin Effect 
D) Carbon footprint 
E) Commensalism

Question 12

Multinational companies may purchase a local supplier to directly control the supply of raw materials.This is known as:

Accepted Answer

A) horizontal integration. 
B) diversification. 
C) vertical integration. 
D) branding. 
E) underwriting.

Question 13

Entrepreneurs benefit from outsourcing because they can acquire services as needed, without having to build those capabilities internally.

Accepted Answer

A) True 
 B)False

Question 14

Licensing makes for a flatter world, because it creates a legal vehicle for taking a product or service delivered in one country and providing a nearly identical version of that product or service in another country.

Accepted Answer

A) True 
 B)False

Question 15

Most companies consider the market-entry option of licensing to be a high-risk option because of the heavy upfront investment.

Accepted Answer

A) True 
 B)False

Question 16

The _____ is a legal document issued by a bank at the importer's (or buyer's) request wherein the importer promises to pay a specified amount of money when the bank receives documents about the shipment.

Accepted Answer

A) export declaration 
B) license 
C) letter of credit 
D) bill of lading 
E) customs invoice

Question 17

One of the disadvantages of licensing is the lower potential returns, compared to other forms of entry into the foreign market, because the revenues are shared between the parties.

Accepted Answer

A) True 
 B)False

Question 18

What are the hidden costs of outsourcing?

Accepted Answer

The answer of What are the hidden costs of outsourcing?...

Question 19

In a(n) _____ joint venture, each partner contributes capital and resources in exchange for an equity stake and share in any resulting profits.

Accepted Answer

The answer of In a(n) _____ joint venture, each partner...

Question 20

Under a licensing agreement, a multinational firm provides a bundle of services and products to a foreign company.

Accepted Answer

A) True 
 B)False

Exam 9: Exporting, Importing, and Global Sourcing

Guanxi refers to the:

Under a licensing agreement, the multinational firm grants rights on its intangible property to a foreign company for a specified period of time.

Which of the following statements holds true for "countertrade"?

Which of the following statements holds true for the sight draft?

Governments use bills of lading to determine the value of the goods for customs-valuation purposes.

_____ refers to a contractual, strategic partnership between two or more separate business entities to pursue a business opportunity together.

A carrier refers to the entity which:

SBA's _____ loan program funds small businesses to pay for any activity that will increase exports.

_____ refers to the granting of permission by one party to another party to use intellectual property rights, such as trademarks, patents, brand names, or technology, to a foreign company under defined conditions along with providing a bundle of services and products.

What are the investment modes of entry into a foreign country?

_____ refers to the measure of the impact that activities like transportation and manufacturing have on the environment, especially on climate change.

Multinational companies may purchase a local supplier to directly control the supply of raw materials.This is known as:

Entrepreneurs benefit from outsourcing because they can acquire services as needed, without having to build those capabilities internally.

Licensing makes for a flatter world, because it creates a legal vehicle for taking a product or service delivered in one country and providing a nearly identical version of that product or service in another country.

Most companies consider the market-entry option of licensing to be a high-risk option because of the heavy upfront investment.

The _____ is a legal document issued by a bank at the importer's (or buyer's) request wherein the importer promises to pay a specified amount of money when the bank receives documents about the shipment.

One of the disadvantages of licensing is the lower potential returns, compared to other forms of entry into the foreign market, because the revenues are shared between the parties.

What are the hidden costs of outsourcing?

In a(n) _____ joint venture, each partner contributes capital and resources in exchange for an equity stake and share in any resulting profits.

Under a licensing agreement, a multinational firm provides a bundle of services and products to a foreign company.