Question 1

The most comprehensive source of information on export opportunities for U.S.firms is the _____.

Accepted Answer

A)   Small Business Administration
B)   Department of Commerce
C)   Federal Trade Commission
D)   Bureau of Competition
E)   Bank of New YorkF) B) and E)
G) A) and C)

Question 2

Identify a drawback of a countertrade agreement.

Accepted Answer

A)   It fails to give firms a way to finance an export deal.
B)   It requires an in-house trading department to be maintained, which can be expensive and time-consuming.
C)   It is detrimental to the economy of the importing country.
D)   Developing nations may have trouble raising the foreign exchange necessary to pay for imports.
E)   It is not an acceptable means of trading in most developing countries.F) A) and C)
G) A) and B)

Question 3

Which of the following is an advantage of countertrade?

Accepted Answer

A)   Firms can avoid setting up in-house trading departments.
B)   It addresses the issue of lack of trust in international business.
C)   It gives a firm a way to finance an export deal when other means are not available.
D)   Firms usually appreciate being paid in the form of goods and services instead of hard currency.
E)   It usually involves the exchange of high-quality goods that a firm can dispose of profitably.F) A) and E)
G) A) and B)

Question 4

Issued by a bank at the request of an importer,a bill of lading states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of exporting?

Accepted Answer

A)   Many foreign customers require face-to-face negotiations on their home turf.
B)   Large firms tend to wait for the world to come to them, rather than going out into the world to seek opportunities.
C)   Exporters have the advantage of reduced paperwork and fewer formalities.
D)   Medium-sized and small firms are proactive about seeking opportunities for profitable exporting.
E)   Firms that focus only on exporting often lose out on significant opportunities for growth and cost reduction.F) None of the above
G) B) and D)

Question 6

Lack of trust in international trade is exacerbated by the distance between the two parties in space,language,and culture.

Accepted Answer

A) True 
 B)False

Question 7

A draft,an instrument normally used in international commerce to effect payment,is also known as a letter of credit.

Accepted Answer

A) True 
 B)False

Question 8

Banks charge exporters a fee for issuing a letter of credit.

Accepted Answer

A) True 
 B)False

Question 9

Once accepted by the drawee,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.
E)   letter of credit.F) A) and C)
G) C) and D)

Question 10

Which of the following is a drawback of relying on an export management company (EMC) ?

Accepted Answer

A)   It does not provide references and has no antecedents.
B)   The exporting company can fail to develop its own exporting capabilities.
C)   It does not have expert specialists to help neophyte exporter identify opportunities.
D)   It typically lacks information about local business regulations.
E)   The exporting company cannot avoid the common pitfalls of exporting.F) All of the above
G) A) and B)

Question 11

When a firm enters a(n) _____ agreement with a country,it often ends up with what are called counterpurchase credits,which can be used to purchase goods from that country.

Accepted Answer

A)   arbitrage
B)   offset
C)   switch trading
D)   buyback
E)   compensationF) B) and D)
G) None of the above

Question 12

In international trade,an exporter wants to be paid before a consignment is shipped.Correspondingly,the importer wants to pay only upon receipt of the consignment.These conflicting preferences of the parties are a manifestation of _____.

Accepted Answer

A)   corporate greed
B)   acculturation
C)   lack of trust
D)   cultural insensitivity
E)   countertrading opportunitiesF) C) and D)
G) A) and B)

Question 13

While small firms tend to be proactive about seeking opportunities for profitable exporting,large firms are very reactive.

Accepted Answer

A) True 
 B)False

Question 14

A(n) _____ refers to a buying agreement similar to counterpurchase,but the exporting country can then fulfill the agreement with any firm in the country to which the sale is being made.

Accepted Answer

A)   switch trade
B)   offset
C)   buyback
D)   arbitrage
E)   barterF) B) and E)
G) C) and D)

Question 15

The direct exchange of goods and/or services between two parties without a cash transaction is referred to as _____.

Accepted Answer

A)   switch trading
B)   counterpurchase
C)   barter
D)   offset
E)   buybackF) A) and D)
G) A) and C)

Question 16

The U.S.Department of Commerce has a(n) _____ in which department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers.

Accepted Answer

A)   matchmaker program
B)   "best prospects" list
C)   SCORE program
D)   "comparison shopping service"
E)   export-import programF) A) and B)
G) D) and E)

Question 17

Countertrade is most likely to be used when:

Accepted Answer

A)   the foreign currency is easily convertible.
B)   the exporter has a letter of credit.
C)   the conventional means of international trade transaction are difficult.
D)   there is mutual trust between the exporter and the importer.
E)   an export management company is used.F) B) and D)
G) None of the above

Question 18

A lack of trust between two parties engaged in international trade is exacerbated by the:

Accepted Answer

A)   saturation of the domestic market.
B)   similar preferences of the parties regarding how a transaction should be configured.
C)   narrowing distance between the two parties due to technological advances.
D)   problems of using an underdeveloped international legal system to enforce contractual obligations.
E)   possibility of doing business with someone with whom they have been associated for a long time.F) B) and C)
G) A) and E)

Question 19

Through its _____ program,the Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Accepted Answer

A)   Export Legal Assistance Network
B)   Service Corps of Retired Executives
C)   International Trade Veteran's Group
D)   Network of Foreign Trade Executives
E)   Export Management CompanyF) A) and B)
G) B) and C)

Question 20

The mission of the _____ is to provide financing aid that will facilitate exports,imports,and the exchange of commodities between the United States and other countries.

Accepted Answer

A)   sogo shosha
B)   World Bank
C)   Overseas Commercial Service
D)   Ex-Im Bank
E)   Export Credit Insurance AssociationF) A) and D)
G) B) and D)

Exam 14: Exporting, Importing, and Countertrade

Which of the following is a drawback of relying on an export management company (EMC) ?

Correct AnswerverifiedShow Answer

Once accepted by the drawee,a time draft becomes a(n) :

Correct AnswerverifiedShow Answer

Countertrade is most likely to be used when:

Correct AnswerverifiedShow Answer

Issued by a bank at the request of an importer,a bill of lading states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

Correct AnswerverifiedShow Answer

Identify a drawback of a countertrade agreement.

Correct AnswerverifiedShow Answer

The direct exchange of goods and/or services between two parties without a cash transaction is referred to as _____.

Correct AnswerverifiedShow Answer

A(n) _____ refers to a buying agreement similar to counterpurchase,but the exporting country can then fulfill the agreement with any firm in the country to which the sale is being made.

Correct AnswerverifiedShow Answer

The U.S.Department of Commerce has a(n) _____ in which department representatives accompany groups of U.S.businesspeople abroad to meet with qualified agents,distributors,and customers.

Correct AnswerverifiedShow Answer

The mission of the _____ is to provide financing aid that will facilitate exports,imports,and the exchange of commodities between the United States and other countries.

Correct AnswerverifiedShow Answer

In international trade,an exporter wants to be paid before a consignment is shipped.Correspondingly,the importer wants to pay only upon receipt of the consignment.These conflicting preferences of the parties are a manifestation of _____.

Correct AnswerverifiedShow Answer

When a firm enters a(n) _____ agreement with a country,it often ends up with what are called counterpurchase credits,which can be used to purchase goods from that country.

Correct AnswerverifiedShow Answer

A lack of trust between two parties engaged in international trade is exacerbated by the:

Correct AnswerverifiedShow Answer

While small firms tend to be proactive about seeking opportunities for profitable exporting,large firms are very reactive.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of countertrade?

Correct AnswerverifiedShow Answer

Through its _____ program,the Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Correct AnswerverifiedShow Answer

The most comprehensive source of information on export opportunities for U.S.firms is the _____.

Correct AnswerverifiedShow Answer

A draft,an instrument normally used in international commerce to effect payment,is also known as a letter of credit.

Correct AnswerverifiedShow Answer

Lack of trust in international trade is exacerbated by the distance between the two parties in space,language,and culture.

Correct AnswerverifiedShow Answer

Banks charge exporters a fee for issuing a letter of credit.

Correct AnswerverifiedShow Answer

Which of the following is true of exporting?

Correct AnswerverifiedShow 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

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