Question 1

In the modern era,countertrade arose in the 1960s as a way for _____ to purchase imports.

Accepted Answer

A)   the United States
B)   the Soviet Union
C)   Germany
D)   Japan
E)   AfricaF) A) and B)
G) None of the above

Question 2

Organizations resort to countertrade of goods and services when:

Accepted Answer

A)   the importer defaults on payment.
B)   the goods and services cannot be traded for money.
C)   the exporter is not able to get a letter of credit from a local bank.
D)   a formal document for acknowledgement is not available.
E)   the conventional means of payment are cheaper.F) B) and D)
G) C) and E)

Question 3

Which of the following is true of medium-sized and small firms?

Accepted Answer

A)   They are proactive about seeking opportunities for profitable exporting.
B)   They consider exporting only after their domestic market is saturated.
C)   They are not intimidated by the complexities of foreign legal systems.
D)   They have a high degree of familiarity with foreign market opportunities.
E)   They explore foreign markets to see where the opportunities lie for leveraging their technology.F) B) and C)
G) A) and B)

Question 4

A(n) _____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.

Accepted Answer

A)   counterpurchase
B)   offset
C)   switch trading
D)   buyback
E)   barterF) A) and D)
G) C) and D)

Question 5

In international commerce,a party initiating a draft is known as the _____.

Accepted Answer

A)   maker
B)   drawee
C)   buyer
D)   agent
E)   drafterF) B) and E)
G) C) and E)

Question 6

Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Accepted Answer

A) True 
 B)False

Question 7

A letter of credit reduces an importer's ability to borrow funds for other purposes because:

Accepted Answer

A)   the importer has to request for it.
B)   it is a financial liability against the importer.
C)   the importer has to pay for the merchandise even before receiving the documents.
D)   the importer has to pay even if the conditions stated in the letter are not satisfied.
E)   it does not give the importer any extra time to resell the merchandise before requiring payment.F) B) and D)
G) B) and C)

Question 8

Briefly describe the different forms of government-backed assistance that help potential U.S.exporters finance their export programs.

Accepted Answer

Prospective U.S.exporters can draw on tw...

Question 9

Which of the following is an advantage of exporting?

Accepted Answer

A)   It helps in easy currency conversion.
B)   It provides large revenue and profit opportunities.
C)   It reduces the administrative costs incurred by a company.
D)   It helps companies increase their unit costs.
E)   It reduces paperwork and complex formalities.F) A) and C)
G) A) and B)

Question 10

German and Japanese firms are relatively more information disadvantaged than U.S.firms.

Accepted Answer

A) True 
 B)False

Question 11

What does the term sogo shosha mean? How do they help Japanese exporters and what role do they play in countertrade?

Accepted Answer

Sogo shosha are Japan's great trading ho...

Question 12

A _____ is issued by a bank,and it indicates that the bank will make payments under specific circumstances.

Accepted Answer

A)   bill of exchange
B)   bill of lading
C)   letter of credit
D)   time draft
E)   usance draftF) A) and D)
G) None of the above

Question 13

Exporters often face voluminous paperwork,complex formalities,and many potential delays and errors.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following institutions within the U.S.Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets?

Accepted Answer

A)   The International Trade Administration
B)   The Small Business Administration
C)   The Federal Trade Commission
D)   The Bureau of Competition
E)   The Bank of New YorkF) B) and D)
G) All of the above

Question 15

Which of the following is true of an export management company (EMC) ?

Accepted Answer

A)   It coordinates the Export Legal Assistance Network, a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.
B)   It provides a potential exporter with a "best prospects" list.
C)   It assembles a "comparison shopping service" for 14 countries.
D)   It organizes trade events that help potential exporters make foreign contacts.
E)   It specializes in serving firms in particular industries and in particular areas of the world.F) A) and D)
G) A) and C)

Question 16

Firms engaged in international trade deal with people they may have never seen,who live in different countries,who speak different languages,and who abide by different legal systems.These factors result in:

Accepted Answer

A)   easy tracking of the parties involved.
B)   a lack of trust between the parties.
C)   strict enforcement of contractual obligations.
D)   rapid acculturation.
E)   better understanding of how transactions should be configured.F) A) and D)
G) D) and E)

Question 17

Briefly describe the strategic steps that novice exporters can take to increase the probability of exporting successfully.

Accepted Answer

The probability of exporting successfull...

Question 18

In international commerce,a sight draft allows for a delay in payment.

Accepted Answer

A) True 
 B)False

Question 19

When a time draft is presented to a drawee,he or she signifies acceptance of it by:

Accepted Answer

A)   delivering the goods immediately.
B)   paying the draft amount immediately.
C)   providing a collateral for the amount specified in the bill.
D)   writing or stamping a notice of acceptance on its face.
E)   selling the draft to an investor at a discount from its face value.F) A) and E)
G) B) and D)

Question 20

Which of the following is a distinct type of countertrade arrangement?

Accepted Answer

A)   Merger
B)   Arbitrage
C)   Dirty float
D)   Barter
E)   DeregulationF) B) and D)
G) All of the above

Exam 14: Exporting, Importing, and Countertrade

Exporters often face voluminous paperwork,complex formalities,and many potential delays and errors.

Correct AnswerverifiedShow Answer

Which of the following is true of medium-sized and small firms?

Correct AnswerverifiedShow Answer

A letter of credit reduces an importer's ability to borrow funds for other purposes because:

Correct AnswerverifiedShow Answer

Firms engaged in international trade deal with people they may have never seen,who live in different countries,who speak different languages,and who abide by different legal systems.These factors result in:

Correct AnswerverifiedShow Answer

Briefly describe the strategic steps that novice exporters can take to increase the probability of exporting successfully.

Correct AnswerverifiedThe probability of exporting successfull...View AnswerShow Answer

A _____ is issued by a bank,and it indicates that the bank will make payments under specific circumstances.

Correct AnswerverifiedShow Answer

Briefly describe the different forms of government-backed assistance that help potential U.S.exporters finance their export programs.

Correct AnswerverifiedProspective U.S.exporters can draw on tw...View AnswerShow Answer

When a time draft is presented to a drawee,he or she signifies acceptance of it by:

Correct AnswerverifiedShow Answer

Which of the following institutions within the U.S.Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets?

Correct AnswerverifiedShow Answer

In international commerce,a sight draft allows for a delay in payment.

Correct AnswerverifiedShow Answer

In the modern era,countertrade arose in the 1960s as a way for _____ to purchase imports.

Correct AnswerverifiedShow Answer

Which of the following is true of an export management company (EMC) ?

Correct AnswerverifiedShow Answer

Which of the following is a distinct type of countertrade arrangement?

Correct AnswerverifiedShow Answer

In international commerce,a party initiating a draft is known as the _____.

Correct AnswerverifiedShow Answer

Organizations resort to countertrade of goods and services when:

Correct AnswerverifiedShow Answer

Which of the following is an advantage of exporting?

Correct AnswerverifiedShow Answer

What does the term sogo shosha mean? How do they help Japanese exporters and what role do they play in countertrade?

Correct AnswerverifiedSogo shosha are Japan's great trading ho...View AnswerShow Answer

German and Japanese firms are relatively more information disadvantaged than U.S.firms.

Correct AnswerverifiedShow Answer

Exporting is often not an end in itself,but merely a step on the road toward establishment of foreign production.

Correct AnswerverifiedShow Answer

A(n) _____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The probability of exporting successfull...
View Answer

Correct Answer
verified

Correct Answer
verified
Prospective U.S.exporters can draw on tw...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Sogo shosha are Japan's great trading ho...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified