Question 1

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 E)
G) All of the above

Question 2

A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called a(n) :

Accepted Answer

A)  switch trade.
B)  offset.
C)  buyback.
D)  arbitrage.
E)  barter.F) A) and B)
G) D) 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) A) and B)
G) A) and C)

Question 4

Which of the following is the most restrictive countertrade arrangement?

Accepted Answer

A)  Counterpurchase
B)  Offset
C)  Barter
D)  Switch trading
E)  BuybackF) A) and B)
G) D) and E)

Question 5

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)  buyback.F) A) and B)
G) A) and C)

Question 6

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

Accepted Answer

A) True 
 B)False

Question 7

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 opportunities.F) A) and E)
G) A) and D)

Question 8

A nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters is the:

Accepted Answer

A)  TradeNet Export Advisor.
B)  Export Trade Assistance Partnership.
C)  United States Trade Service.
D)  Export Legal Assistance Network.
E)  Ex-Im Network.F) None of the above
G) B) and D)

Question 9

When serving as collateral, the bill of lading:

Accepted Answer

A)  can be used to advance funds to the exporter by its local bank before or during shipment.
B)  specifies that the carrier is obligated to provide a transportation service in return for a certain charge.
C)  can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.
D)  states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.
E)  is an order written by an exporter instructing an importer, or an importer's agent, to pay a specified amount of money at a specified time.F) A) and E)
G) B) and E)

Question 10

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 11

How does a lack of trust affect firms engaged in international trade? How can the problem be solved?

Accepted Answer

Firms engaged in international trade hav...

Question 12

Financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries is provided by the:

Accepted Answer

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

Question 13

Which of the following is a disadvantage of barter as a countertrade arrangement?

Accepted Answer

A)  It is a very complex arrangement.
B)  In a barter system, if goods are exchanged simultaneously, one party ends up financing the other.
C)  Firms engaged in barter run the risk of having to accept goods they do not want or cannot use.
D)  It involves huge cash transactions.
E)  It cannot be used in transactions with trading partners who are not creditworthy.F) A) and E)
G) D) and E)

Question 14

How does the Small Business Administration (SBA) help potential exporters?
D.C. Through its Service Corps of Retired Executives (SCORE) program, the SBA oversees some 11,500 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 Small Business Administration (SBA) ...

Question 15

The Foreign Credit Insurance Association (FCIA)  is an association of private commercial institutions operating under the guidance of the:

Accepted Answer

A)  Federal Mediation and Conciliation Service.
B)  U.S. Department of Commerce.
C)  Export-Import Bank.
D)  International Trade Administration.
E)  Ministry of International Trade and Industry.F) C) and E)
G) A) and D)

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 E)
G) A) and B)

Question 18

Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. These firms can best overcome ignorance by:

Accepted Answer

A)  shortening production runs.
B)  creating revenue.
C)  outsourcing decisions.
D)  collecting information.
E)  lowering unit costs.F) B) and C)
G) C) and D)

Question 19

Export credit insurance protects an exporter against the possibility of a foreign importer's default on payment when there is a lack of a letter of credit.

Accepted Answer

A) True 
 B)False

Question 20

Firms that do not export often:

Accepted Answer

A)  face problems of currency conversion.
B)  lose out on significant opportunities for cost reduction.
C)  are able to reduce their unit costs.
D)  are not intimidated by the business practices of foreign countries.
E)  explore foreign markets to see where they can leverage their technology.F) A) and B)
G) B) and E)

Exam 14: Exporting, Importing, and Countertrade

How does a lack of trust affect firms engaged in international trade? How can the problem be solved?

Correct Answer
verified
Firms engaged in international trade hav...
View 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 Answer
verified

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 Answer
verified

Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. These firms can best overcome ignorance by:

Correct Answer
verified

Correct Answer
verified
The Small Business Administration (SBA) ...
View Answer

Which of the following is the most restrictive countertrade arrangement?

Correct Answer
verified

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

Correct Answer
verified

A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called a(n) :

Correct Answer
verified

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

Correct Answer
verified

Financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries is provided by the:

Correct Answer
verified

The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the:

Correct Answer
verified

A nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters is the:

Correct Answer
verified

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

Correct Answer
verified

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

Correct Answer
verified

Export credit insurance protects an exporter against the possibility of a foreign importer's default on payment when there is a lack of a letter of credit.

Correct Answer
verified

When serving as collateral, the bill of lading:

Correct Answer
verified

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

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

Firms that do not export often:

Correct Answer
verified

Which of the following is a disadvantage of barter as a countertrade arrangement?

Correct Answer
verified

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

Correct Answer
verified

Exam 14: Exporting, Importing, and Countertrade

How does a lack of trust affect firms engaged in international trade? How can the problem be solved?

Correct AnswerverifiedFirms engaged in international trade hav...View AnswerShow 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 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

Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. These firms can best overcome ignorance by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe Small Business Administration (SBA) ...View AnswerShow Answer

Which of the following is the most restrictive countertrade arrangement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A buying agreement where the exporting country can fulfill the agreement with any firm in the country to which the sale is being made is called a(n) :

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

Financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries is provided by the:

Correct AnswerverifiedShow Answer

The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the:

Correct AnswerverifiedShow Answer

A nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters is the:

Correct AnswerverifiedShow Answer

A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank before final payment by the importer.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Export credit insurance protects an exporter against the possibility of a foreign importer's default on payment when there is a lack of a letter of credit.

Correct AnswerverifiedShow Answer

When serving as collateral, the bill of lading:

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

Firms that do not export often:

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of barter as a countertrade arrangement?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified
Firms engaged in international trade hav...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Small Business Administration (SBA) ...
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

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified