Question 1

John Ciro,the CEO of Ciro Products,a small manufacturer,told his employees that he is part of a group that was going abroad along with representatives of the U.S.Department of Commerce and other U.S.businesspeople to meet with qualified agents,distributors,and customers.Ciro was most likely talking about the

Accepted Answer

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

Question 2

A firm sells some products to a foreign country.The foreign country pays the firm in dollars but in exchange the firm agrees to spend some of the proceeds from the sale on textiles produced by the foreign country.In which of the following types of countertrade arrangement are the two parties engaged?

Accepted Answer

A)  switch trading
B)  buyback
C)  counterpurchase
D)  barter
E)  compensationF) C) and D)
G) B) and E) C

Question 3

From an exporter's perspective,why is an offset more attractive than a straight counterpurchase agreement?

Accepted Answer

A)  It is the simplest countertrade arrangement.
B)  It gives the exporter greater flexibility to choose the goods that it wishes to purchase.
C)  It allows the use of a specialized third-party trading house.
D)  It gives the exporter counterpurchase credits,which can be used to purchase goods from another country.
E)  It allows direct exchange of goods and/or services between two parties without a cash transaction.F) A) and B)
G) A) and C)

Question 4

The mission of the Foreign Credit Insurance Association 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) True 
 B)False

Question 5

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 6

Which of the following is a common pitfall that novice exporters come across?

Accepted Answer

A)  poor understanding of the opportunities in the domestic market
B)  low unit costs
C)  increased economies of scale
D)  problems securing financing
E)  familiar distribution systemsF) A) and E)
G) C) and D) D

Question 7

Southern Products is a ninety-year old,fourth generation family business located in Pooler,Georgia.The company had concentrated on the U.S.market its entire life by selling its products primarily in the southern United States.Due to increased competition in the domestic market,Southern Products now wants to sell abroad.The company and its top management team is hesitant,however.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) C) and E)
G) B) and D)

Question 8

While seeking opportunities for profitable exporting,large firms generally tend to be

Accepted Answer

A)  passive.
B)  risk averse.
C)  wary.
D)  proactive.
E)  neutral.F) C) and E)
G) None of the above

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 D)
G) D) and E)

Question 10

Only large companies have benefited significantly from the moneymaking opportunities of exporting.

Accepted Answer

A) True 
 B)False

Question 11

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge,it serves as a

Accepted Answer

A)  contract.
B)  receipt.
C)  document of title.
D)  letter of credit.
E)  bill of exchange.F) A) and B)
G) All of the above

Question 12

Which of the following is true of a letter of credit?

Accepted Answer

A)  It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular,specified documents.
B)  It is a document written by an exporter instructing an importer to pay a specified amount of money at a specified time.
C)  It serves as a receipt,a contract,and a document of title.
D)  It indicates that the carrier has received the merchandise described on the face of the document.
E)  It allows buyers to obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay.F) B) and C)
G) A) and B)

Question 13

Countertrade is most attractive to

Accepted Answer

A)  small exporters.
B)  large multinational enterprises.
C)  only U.S.firms.
D)  any firm in democratic nations.
E)  new companies.F) A) and D)
G) A) and C)

Question 14

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) B) and E)
G) A) and D) C

Question 15

Offset refers to the use of a specialized third-party trading house in a countertrade arrangement.

Accepted Answer

A) True 
 B)False

Question 16

Jamal Steel,a rapidly growing small steel company with annual revenues of $8 million is looking to buy a large industrial furnace from Shinto Manufacturing,a Japan-based company.Rather than have a letter of credit binding the two parties,both agree on a draft.In international commerce,Shinto Manufacturing,the party initiating the draft is known as the

Accepted Answer

A)  maker.
B)  drawee.
C)  buyer.
D)  agent.
E)  drafter.F) A) and D)
G) A) and C)

Question 17

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 through its program known as the

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 Company.F) B) and E)
G) A) and E)

Question 18

Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in international trade.

Accepted Answer

The financial devices that have evolved ...

Question 19

Abby Goodwin,the sales manager of Ark Techno Products is wary of using an export management company (EMC) to get the company on the exporting path.Her CEO,John Mosco is very much in favor of hiring an EMC.Which of the following is a drawback of relying on an export management company (EMC) that Abby Goodwin can use to support her contention?

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 a 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) None of the above
G) A) and E)

Question 20

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) B) and C)

Exam 14: Exporting, Importing, and Countertrade

Correct Answer
verified

Correct Answer
verified
C

From an exporter's perspective,why is an offset more attractive than a straight counterpurchase agreement?

Correct Answer
verified

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

Correct Answer
verified

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 is a common pitfall that novice exporters come across?

Correct Answer
verified
D

Correct Answer
verified

While seeking opportunities for profitable exporting,large firms generally tend to be

Correct Answer
verified

When serving as collateral,the bill of lading

Correct Answer
verified

Only large companies have benefited significantly from the moneymaking opportunities of exporting.

Correct Answer
verified

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge,it serves as a

Correct Answer
verified

Which of the following is true of a letter of credit?

Correct Answer
verified

Countertrade is most attractive to

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
C

Offset refers to the use of a specialized third-party trading house in a countertrade arrangement.

Correct Answer
verified

Correct Answer
verified

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 through its program known as the

Correct Answer
verified

Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in international trade.

Correct Answer
verified
The financial devices that have evolved ...
View Answer

Correct Answer
verified

Which of the following is the most restrictive countertrade arrangement?

Correct Answer
verified

Exam 14: Exporting, Importing, and Countertrade

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

From an exporter's perspective,why is an offset more attractive than a straight counterpurchase agreement?

Correct AnswerverifiedShow Answer

The mission of the Foreign Credit Insurance Association 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

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 is a common pitfall that novice exporters come across?

Correct AnswerverifiedD

Correct AnswerverifiedShow Answer

While seeking opportunities for profitable exporting,large firms generally tend to be

Correct AnswerverifiedShow Answer

When serving as collateral,the bill of lading

Correct AnswerverifiedShow Answer

Only large companies have benefited significantly from the moneymaking opportunities of exporting.

Correct AnswerverifiedShow Answer

When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge,it serves as a

Correct AnswerverifiedShow Answer

Which of the following is true of a letter of credit?

Correct AnswerverifiedShow Answer

Countertrade is most attractive to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

Offset refers to the use of a specialized third-party trading house in a countertrade arrangement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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 through its program known as the

Correct AnswerverifiedShow Answer

Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in international trade.

Correct AnswerverifiedThe financial devices that have evolved ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is the most restrictive countertrade arrangement?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The financial devices that have evolved ...
View Answer

Correct Answer
verified

Correct Answer
verified